Lotte Insurance Launches "Rental Fraud Legal Expense Insurance" Offering Attorney Fee Support

Lotte Insurance announced on August 28 that it has formed a partnership with the Korea Real Estate Data Research Institute, which operates the real estate risk assessment platform "NaejipScan," regarding insurance for legal expenses related to rental fraud.

Through this partnership, customers who subscribe to NaejipScan's "Legal Expense Support Service" will be covered for attorney fees required for civil lawsuits and compulsory execution in the event of rental fraud. After analyzing the rental property on NaejipScan before signing a contract and subscribing to the service, Lotte Insurance's rental fraud legal expense insurance will be provided for the duration of the lease.

Lotte Insurance Building. Lotte Sonbo

Lotte Insurance's rental fraud legal expense insurance is the first and only product of its kind in Korea. Last year, it was granted exclusive rights by the General Insurance Association of Korea in recognition of its originality, innovativeness, and usefulness. It is distinguished by not only covering litigation costs but also supporting the actual process of recovering the deposit.

Lotte Insurance and the Korea Real Estate Data Research Institute have joined forces with the goal of preventing rental fraud, which has emerged as a social issue, and minimizing the financial damage suffered by tenants. This partnership is part of Lotte Insurance's ongoing "social contribution through business" initiatives, which include insurance for firefighters, premium discounts for national merit recipients, and insurance for military personnel. Lotte Insurance plans to use this partnership as an opportunity to further expand access to social contribution-type insurance and strengthen its social responsibility.

NaejipScan, operated by the Korea Real Estate Data Research Institute, provides a service that uses artificial intelligence algorithms to analyze the landlord's multiple property ownership status, past rental contract history, and changes in debt based on certified copy of register analysis. As of the end of June, the cumulative number of rental safety analysis reports issued reached 1.08 million.

NaejipScan's legal expense support service is expected to support tenants' safe housing not only by covering attorney fees, but also by providing functions to prevent rental fraud, such as notifications of changes in registration and one legal consultation per month.

A representative from Lotte Insurance stated, "Through our partnership with NaejipScan, we are now able to actively realize our original intention of not only preventing rental fraud but also supporting actual recovery in the event of damage," adding, "We will continue to collaborate with various platforms to concretely practice social contribution through business."