Encouragement to Expand Time-Based Insurance Sales for Delivery Riders
First-time motorcycle (two-wheeled vehicle) insurance subscribers will be able to receive discounts on their premiums. Additionally, a group discount and surcharge system will be introduced for corporate-owned two-wheeled vehicles used for paid transportation. The sale of hourly insurance for those engaged in hourly delivery work will also be expanded.
On the 27th, the Financial Supervisory Service announced an improvement plan for the "Two-Wheeled Vehicle Insurance Premium Calculation System" containing these details.
Two-wheeled vehicle insurance premiums are relatively expensive, and the mandatory subscription rate was only 51.8% last year. The average insurance premium for household two-wheeled vehicles is around 220,000 KRW, but for paid transportation such as delivery purposes, the premium is about 2,240,000 KRW.
In response, the Financial Supervisory Service explained, "There have been criticisms that there are significant blind spots in coverage, where two-wheeled vehicle drivers and victims are not compensated in case of accidents," and added, "We have prepared improvement measures to alleviate the insurance premium burden on two-wheeled vehicle drivers and to increase the insurance subscription rate."
First, a newly established "Protection Discount Grade" will be applied when subscribing to two-wheeled vehicle insurance for the first time. These subscribers can receive about a 20% discount on their premiums. This improves the previous situation where first-time subscribers were assigned the same grade as those who had multiple accidents, resulting in higher premiums. The Protection Discount Grade for first-time subscribers will apply to insurance contracts concluded after the 1st of next month.
A group discount and surcharge system will be introduced for corporations owning 10 or more two-wheeled vehicles used for paid transportation. Groups that actively manage risks, such as providing safety education to affiliated drivers and improving loss ratios, will be eligible for premium discounts. Conversely, companies with multiple accidents will face premium surcharges. This system will apply to insurance contracts concluded after April 1st of next year. Premium discounts will be applied immediately upon implementation, while surcharges for those with poor loss ratios will be phased in over five years.
Considering the increase in hourly delivery workers due to the growth of the delivery industry, the sale of "hourly insurance" will also be expanded. Hourly insurance involves subscribing to relatively inexpensive household two-wheeled vehicle insurance and then paying an additional premium for paid transportation only during delivery hours. Currently, six companies?Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, DB Insurance, Lotte Insurance, and Hana Insurance?are selling this product.
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