Even if a personal water leisure device is used for commercial purposes and an accident occurs, the Supreme Court has ruled that the insurance company must pay the insurance benefit unless there is an explicit exemption clause in the insurance policy. On November 13, the Supreme Court's Civil Division 2 (Presiding Justice Eom Sangpil) overturned the lower court's decision that had dismissed Plaintiff A's claim for insurance benefits and remanded the case to the Seoul Central District Court (2023Da271156).
[Facts]
In August 2015, Mr. A suffered injuries requiring six weeks of treatment while receiving wakeboard lessons (a water sport using the propulsion of a boat) from employees of a water leisure company. After winning a damages lawsuit against those involved in the accident in February 2019, Mr. A filed a lawsuit claiming 100 million won in insurance benefits from DB Insurance, which covered the boat involved in the accident. DB Insurance argued that it was not liable to pay the insurance benefit because the personal boat was used for commercial purposes.
[Lower Court Rulings]
The first trial court ruled that DB Insurance must pay Mr. A 100 million won in insurance benefits. The court stated, "It is unclear on what basis DB Insurance's exemption claim relies in the comprehensive water leisure insurance policy, and there is insufficient reason to recognize an exemption."
However, the appellate court (the original decision) reached a different conclusion, stating, "If a personal water leisure device covered by personal insurance is used for business or work purposes, it should not be considered the subject of insurance," and dismissed Mr. A's claim.
[Supreme Court Ruling]
The Supreme Court set aside the original decision, stating that the lower court misunderstood the legal principles regarding the interpretation of insurance policies. The court ruled, "There is no exemption clause in the comprehensive water leisure insurance policy stating that DB Insurance does not compensate for accidents arising from the use of a personal water leisure device for business or work purposes."
Lee Sangwoo, Legal Times Reporter
※This article is based on content supplied by Law Times.
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