Delivery Mutual Aid Association Launches Mutual Aid Insurance Products Up to 45% Cheaper Than Insurers
Annual and Monthly Paid Transport Mutual Aid Insurance Reduces Subscription Burden and Expands Coverage
As major delivery app companies introduce measures to reduce delivery fees and the number of users begins to rise, a motorcycle delivery worker is making deliveries early in the morning on the 8th in downtown Seoul. Photo by Jinhyung Kang aymsdream@
The Ministry of Land, Infrastructure and Transport and the Delivery Service Mutual Aid Association (hereinafter referred to as the Association) will launch new annual and monthly mutual aid insurance products on the 30th, following the time-based mutual aid insurance product released in June.
The Association is a non-profit corporation jointly established by eight certified small parcel delivery service providers (Woowa Brothers, Coupang Eats, Fly and Company, Logiol, Barogo, Manna Corporation, Vroong, and Relative).
With the time-based mutual aid insurance product attracting great interest from delivery workers, with about 20,000 subscribers within three months of its launch, the newly released annual and monthly mutual aid insurance products (annual premium of 1.21 million KRW for first-time subscribers) will be offered up to 45% cheaper compared to the market average (annual average of 2.2 million KRW), significantly contributing to strengthening the social safety net for workers.
This product is characterized by offering not only annual insurance products traditionally handled by existing insurers but also a separate monthly (30-day) insurance product. When subscribing to the monthly mutual aid insurance product, the initial heavy premium burden is reduced, and premiums are immediately lowered on a monthly basis in case of no accidents.
This allows subscribers to immediately feel the effect of premium reductions when driving safely, which is expected to help encourage voluntary safe driving.
Additionally, the Association offers optional special contracts that expand coverage compared to market insurance products, reflecting the delivery workers' characteristics.
These include the 'Foreign Vehicle Collision Compensation Special Contract' that raises the coverage limit to 100 million KRW, coverage for serious injuries such as fractures (injury grades 1 to 9) under 'Driver Physical Accident' coverage, 'Uninsured Vehicle Injury' coverage, and 'Legal Expense Support' (support for criminal settlement fees, etc.), all planned to be offered at lower prices than market insurers.
Moreover, various partnership services providing practical benefits will be detailed, such as an additional 1% discount on premiums for automatic monthly insurance renewal, a partnership credit card discount of 10,000 KRW per month, and premium discounts for completing safety education and installing driving record devices.
The Ministry of Land, Infrastructure and Transport and the Association plan to provide mutual aid insurance at the level of comprehensive two-wheeled vehicle insurance at an affordable premium of about 100,000 KRW per month (for first-time subscribers aged 45), aiming to increase the subscription rate of paid transport two-wheeled vehicle insurance, which has been low due to expensive premiums, to 80% within five years.
This mutual aid insurance product will undergo initial stability testing with some users from the 30th to October 6th, and will be available for subscription through the Delivery Service Mutual Aid Association mobile app starting from the 7th of next month.
Um Jeong-hee, Director of the Transportation and Logistics Office at the Ministry of Land, Infrastructure and Transport, stated, “We hope that the annual and monthly paid transport mutual aid products launched by the Association will help workers subscribe to insurance and work more safely,” and added, “The government will also support the Association to fulfill its role as a reliable safety net for delivery workers.”
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