"Electric Vehicle Battery Damage... Full Compensation Difficult Without Special Agreement"

#Mr. A experienced battery damage after an accident while driving an electric vehicle. To replace the battery with a new one, he filed an insurance claim using the existing vehicle-only accident coverage endorsement, but the insurance company only paid a portion of the battery replacement cost. This was because they deducted the amount corresponding to the depreciation of the existing battery.

The Financial Supervisory Service recently stated on the 2nd that complaints regarding insurance claims related to special automobile insurance endorsements have been frequently received and advised consumers to be cautious.

In the previous case, to receive full compensation for the electric vehicle replacement cost from the insurance company, one must separately subscribe to the 'Electric Vehicle Battery Full Compensation Special Endorsement.' The own-damage coverage endorsement stipulates that when important parts such as the electric vehicle battery are replaced with new parts, the insurance payout will deduct the depreciation amount of the existing battery. The depreciation amount must be borne by the consumer. Without subscribing to a separate endorsement, it is difficult to receive full compensation for the replacement cost.

Electric vehicle charging. Photo by Hyunmin Kim kimhyun81@

In the case of the 'Other Vehicle Driving Coverage Special Endorsement,' it should be noted that it does not apply to vehicles normally used by the insured or their family. This endorsement covers damages from accidents that occur while driving a vehicle other than the insured’s own vehicle. Here, "other vehicle" refers to a vehicle of the same type as the insured vehicle but not owned or normally used by the insured or their family.

For example, if an accident occurs while driving a vehicle owned by a corporation where the wife is the representative, even if subscribed to the other vehicle driving coverage endorsement, insurance benefits cannot be received. It is also difficult to receive compensation when using a company colleague’s personally owned vehicle for work purposes or frequently driving a friend’s vehicle on loan.

The Financial Supervisory Service also explained that regarding the 'Spouse Driver Limited Driving Special Endorsement,' accidents caused by a person in a de facto marital relationship while a legal spouse already exists are not covered. The 'Emergency Roadside Assistance Special Endorsement' provides emergency refueling services when fuel runs out during long-distance travel, but for LPG vehicles, towing is provided to the nearest location where refueling is possible within a certain distance. For electric vehicles, it should be noted that emergency towing services in case of battery depletion are only provided if subscribed to a separate endorsement such as the 'Expanded Emergency Towing Service Special Endorsement.'