Liability for Bodily Injury and Property Damage Likely to Increase Insurance Payouts
Payments Planned Considering Earned Income of Deceased Bank Employees
Drivers Enrolled in Unlimited Bodily Injury Comprehensive Insurance
Regarding the wrong-way driving accident near Seoul City Hall Station that resulted in 16 casualties, the insurance company with which the at-fault driver is enrolled has also begun the insurance payment process. Amid the high number of casualties, there are projections that the insurance payout could approach 10 billion KRW. The insurance company stated that it will smoothly compensate the victims regardless of whether the sudden unintended acceleration claimed by the at-fault driver is proven, but the exact amount is not yet known.
On the morning of the 4th, a mourner is pouring a drink at the site of a wrong-way driving accident near City Hall Station in Jung-gu, Seoul. On the 1st, at the intersection, a passenger car driven by driver A went the wrong way and crashed onto the sidewalk, resulting in 9 deaths. [Photo by Yonhap News]
On the 4th, MBN reported that the at-fault driver involved in the wrong-way driving accident near City Hall Station is covered by a 'comprehensive insurance' policy that provides unlimited liability coverage for bodily injury to others. Since the death toll has reached nine, the insurance payout is expected to amount to tens of billions of KRW. This is because 'lost earnings' constitute a large portion of the compensation, in addition to consolation money and funeral expenses.
Lost earnings refer to the amount of money the victim would have earned if they had not died. It is calculated by multiplying the victim’s average monthly actual income by the number of months they could have worked. For example, if a 30-year-old office worker earning 4 million KRW per month died in the accident, assuming a retirement age of 65, the lost earnings would be approximately 640 million KRW, with consolation money of 100 million KRW and funeral expenses around 5 million KRW expected to be paid. Some speculate that since most of the deceased in this accident are in their 30s to 50s and include high-income earners such as bank employees and City Hall officials, the total insurance payout could approach 10 billion KRW.
Insurance Company: "Insurance Payments Will Be Made First Regardless of Sudden Unintended Acceleration Claims"
The at-fault driver claimed sudden unintended acceleration at the time. Sudden unintended acceleration requires the driver to prove that the vehicle did not stop despite pressing the brake, which is practically difficult. Moreover, sudden unintended acceleration itself does not exempt the at-fault driver from charges of 'negligent homicide or injury under the Special Act on Traffic Accident Handling.' On the 2nd, a Namdaemun Police Station official stated in a briefing, "Even if it is sudden unintended acceleration, the applicable charges do not change."
On the morning of the 2nd, police are controlling the area around a completely destroyed vehicle at an intersection near Seoul City Hall Station, where a major traffic accident occurred the previous day. [Photo by Yonhap News]
An insurance industry official said, "Insurance payments will be made regardless of sudden unintended acceleration," adding, "In cases of drunk driving or intentional acts, exemption reasons arise, and the at-fault driver must compensate the victims and their families directly, but under the current circumstances, the insurance company will make advance payments." The official also predicted, "If it is later proven to be sudden unintended acceleration, the insurance company will file a subrogation lawsuit against the manufacturer."
Regardless of the possibility of sudden unintended acceleration, DB Insurance is swiftly proceeding with compensation procedures for the victims. A DB Insurance official said, "At this point, an accurate estimate of the scale is not possible," adding, "Since victim compensation is a priority, we have formed an emergency response team to proceed with compensation as quickly as possible for the victims."
Seoul City will also provide 20 million KRW in Seoul Citizen Safety Insurance social disaster death benefits to the accident victims. Citizen Safety Insurance is a system that pays insurance benefits through insurance agencies to citizens who suffer death, aftereffects, or injuries due to unexpected accidents such as fires or traffic accidents.
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