Island and Remote Area Residents Face Discrimination in Car "Emergency Dispatch Service"

No Service Provided Despite Mandatory Insurance Subscription
Seo Samseok: "Government Must Take Action to Improve Policy Terms"

Automobile insurance, which is mandatory for all car owners, has become a subject of controversy as it does not provide the essential "emergency dispatch" service to residents in certain areas such as islands and remote regions. Critics point out that unfair policy terms, which have left policyholders unable to receive services in urgent situations despite paying the same premiums, have been neglected for over 20 years.

On October 11, Assemblyman Seo Samseok of the Democratic Party of Korea (Yeongam, Muan, and Shinan in South Jeolla Province) analyzed the "terms and conditions of the five major non-life insurance companies" submitted by the Financial Services Commission and found that islands and remote areas are explicitly excluded from the scope of emergency dispatch services. This unreasonable provision, established in 2001, has been classified as a "voluntary policy" by the Fair Trade Commission and has remained in place without any corrective measures.

The problem is that residents in these regions pay the same premiums but are left in a service blind spot. As of this date, there are approximately 170,000 vehicles registered in islands and remote areas, and insurance companies are estimated to collect about 119.5 billion won in annual premiums from these policyholders.

However, when a vehicle breaks down or an accident occurs, residents face a double burden, as they must contact repair shops on the mainland directly and bear significant costs. In fact, a resident of Shinan County, identified as Mr. A, said, "I requested emergency dispatch for a vehicle breakdown on the island, but was refused. In the end, I had to call a repair technician from Mokpo and paid 2 million won for the repairs."

Furthermore, vehicles from outside the islands that visit via car ferries are also exposed to the same risks. From 2020 to 2024, a total of 11.02 million vehicles traveled to islands via car ferries, and this number is increasing annually. The reality that insurance policyholders cannot receive emergency dispatch services when vehicle problems occur on islands poses a serious threat to the safety of island visitors as well.

In response to these criticisms, the five major non-life insurance companies acknowledged the issue but stated that they plan to develop a "special rider" that would incur additional costs on top of the existing premiums.

Assemblyman Seo emphasized, "It is unfair that automobile insurance is mandatory, yet residents of islands and remote areas are denied the vehicle dispatch services that should naturally be provided. The government must seek solutions to these unreasonable policy terms and establish measures to address vehicle breakdowns for both residents and visitors in islands and remote regions."