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A relief procedure will be introduced to ensure that victims of automobile insurance fraud do not suffer administrative disadvantages such as penalty points and fines incurred during the fraud process.

On the 26th, the Financial Supervisory Service announced that, in cooperation with the National Police Agency and the insurance industry, it will introduce a relief procedure that allows victims of traffic accidents confirmed as insurance fraud to easily apply for the resolution of administrative disadvantages. The procedure will be piloted for two months from April 15 to May 31 and officially launched in June.

Until now, victims of automobile insurance fraud were recorded as drivers at fault under the Road Traffic Act, resulting in penalty points and fines. Although victims could apply to the police station to cancel administrative penalties such as penalty points and fines once the traffic accident was confirmed as insurance fraud, it was difficult to secure evidence proving the insurance fraud victimization.

The relief procedure begins with the Korea Insurance Development Institute issuing a "Certificate of Insurance Fraud Victimization." The victim brings the certificate to the police station to apply for the resolution of administrative disadvantages such as deletion of accident records. The police then review the application by cross-checking the insurance fraud victimization and traffic accident details, delete the accident records, and notify the victim of the results.

As of the end of last year, the Korea Insurance Development Institute calculated that the number of relief targets includes 14,147 cases of traffic accident record deletions, 862 cases of penalty point deletions (11,270 points over the past three years), and 152 cases of fine refunds (5.8 million KRW over the past five years). The number of new cases occurring annually is expected to be around 2,000 to 3,000.

Meanwhile, the Financial Supervisory Service is operating a system with the Korea Insurance Development Institute and the insurance industry to refund victims for unfairly increased automobile insurance premiums due to insurance fraud.

A Financial Supervisory Service official stated, "We will discuss with the National Police Agency, the Korea Insurance Development Institute, and the insurance industry about the confirmation of victimization and submission methods to enable victims of insurance fraud to easily and conveniently resolve administrative disadvantages, and establish a relief procedure."