A motorcyclist recently had an accident with Maserati that was in front. The driver of Maserati requested the motorcyclist to pay $5,059 (5.74 million KRW) to replace rear doors and rear fender.
A practice where external parts are replaced with new parts after a fender bender will be improved as financial authorities are working on ways to improve such practice.
Financial Supervisory Service (FSS) announced that it has prepared solutions to such practice.
FSS is going to improve compensation standard to minor damage of external automotive parts.
Since July of 2016, FSS has only approved restoration of sheet metal and paint rather than replacement of parts whenever there were minor accidents. By doing so, it was able to reduce $34.8 million (39.5 billion KRW) and insurance by 0.4%.
FSS has also decided to approve only restoration of sheet metal and paint of 7 automotive parts such as front and rear doors, hood, and others. Detailed information will be announced through its homepage after Korea Insurance Development Institute performs performance and collision tests.
“Loss ratio increased due to increase in number of accidents and extreme heat wave.” said Chairman Kim Yong-deok of General Insurance Association of Korea. “Auto-insurance from damage in 2018 is expected to be close to $617 million (700 billion KRW).”
“We are going to wait until we look into many different aspects such as accident rate, loss ratio, and contracts with repair shops.” said Chairman Kim regarding a possibility of additional increase in auto-insurance.
Staff Reporter Park, Yoonho | yuno@etnews.com