When Damaged by Paving Blocks or Potholes
Compensation Possible with Yeongjomul Liability Insurance
(Photo left) The pavement blocks near the feet of a resident taking a walk at Jamwon Hangang Park in Seocho-gu, Seoul are missing. A few weeks later, upon revisiting, the pavement blocks had been replaced and repaired. (Photo right) The recent condition of the sidewalk on Apgujeong-ro in Gangnam-gu. The pavement blocks are bulging, posing a high risk of twisting an ankle while walking. Photo by Minjin Kim enter@
Kim Kyung-im (alias, 56), who lives in Yongsan-gu, Seoul, slipped and fractured her ankle at a crosswalk in front of her apartment complex last year and underwent surgery. Feeling unlucky and blaming herself, Kim heard from an acquaintance that she could be compensated through the Public Facility Liability Insurance (Yeongjomul Compensation Insurance). The crosswalk where Kim slipped had been recently repainted, and it was slippery due to rain until dawn. After inquiring at her district office, Kim submitted an application, and after review by the insurance company Samsung Fire & Marine Insurance, she received surgery costs and a small consolation payment.
On what grounds did Kim receive compensation from the district office? Under what circumstances is compensation possible? Kim was able to receive compensation because she was harmed due to a public facility (Yeongjomul). Public facilities refer to facilities provided by the state or local governments for specific public purposes. Simply put, these include structures such as roads, traffic signs, sidewalk blocks, street trees, and outdoor exercise equipment in parks managed by city, county, or district offices. Songpa-gu and Jung-gu have also enrolled their outdoor exercise equipment in the Public Facility Liability Insurance.
If a resident suffers damage due to a public facility and can prove this fact, it becomes grounds for compensation from the local government. However, the local government must have enrolled in the Public Facility Liability Insurance through the Korea Local Finance Association. Recently, it is rare to find local governments that have not subscribed to this insurance, as most have joined. According to the Local Finance Association on the 31st, the number of registrations for local governments' Public Facility Liability Insurance increased from 206,630 cases in 2015 to 409,957 cases last year, doubling in seven years.
Typical compensation cases include tripping over poorly maintained sidewalk blocks or vehicle damage caused by potholes (small holes on asphalt pavement surfaces). In cities like Seoul, many compensation claims are filed due to sidewalk block tripping accidents, while in rural areas, pothole damage claims are more common.
If a local government has not subscribed to the Public Facility Liability Insurance or if the responsible official refuses to accept the claim, the affected resident must apply for state compensation through the State Compensation Review Committee. In such cases, the inconvenience is considerable. After submission, the waiting time is long, and the procedures are complicated and cumbersome, making compensation difficult. On the other hand, processing through the Public Facility Liability Insurance can take as little as one to two months.
As more people become aware of this insurance, the number of compensation payments increased from 7,225 cases in 2015 to 17,806 cases last year, a 2.5-fold increase, and the payout amount rose from 15.1 billion KRW to 43.3 billion KRW, nearly tripling. However, the industry explains that many people still do not know about it compared to the actual number of accidents and damages occurring. Hong Shin-woo, an adjuster at the loss adjustment firm Shinseong, said, “Although it is much better known than in the past, there are still many cases where people learn about it late and do not receive proper compensation,” adding, “Local governments should actively promote it so that residents who suffer damages can receive proper compensation.”
Adjuster Hong advised, “If the cause-and-effect relationship of the accident and the location are unclear, it is difficult to receive compensation, and in cases of false claims, one may be prosecuted for insurance fraud.” He also recommended, “If you suffer damage from an accident, it is good to take evidence photos, keep records such as 119 ambulance reports if seriously injured, and secure CCTV footage from the scene.”
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