Definition of Funeral Expenses
Definition of funeral expenses
- The term "funeral expenses" pertains to industrial accident compensation insurance benefits paid to a survivor, etc. who arranges funeral services for a worker who dies due to any cause related to their duties (Article 71 (1) of the Industrial Accident Compensation Insurance Act).
※ The term "survivor" pertains to a spouse (including a person who is in a de facto marital relationship), child, parent, grandchild, grandparent, brother, or sister of the deceased person (Subparagraph 3 of Article 5 of the Industrial Accident Compensation Insurance Act).
Claims for Funeral Expenses
Claims for funeral expenses
- A beneficiary who intends to receive funeral expenses shall file a written claim for funeral expenses with the Korea Workers' Compensation & Welfare Service [Article 44 (1) and Form 15 of the Regulations of Compensation Affairs].
- A person other than survivors who intends to receive funeral expenses after arranging funeral services shall file a written claim for funeral expenses and documents proving the amount actually spent on the funeral services with the Korea Workers' Compensation & Welfare Service (Article 44 (1) of the Regulations of Compensation Affairs).
Payment of Funeral Expenses
Where a survivor arranges funeral services
- Where a worker dies due to any cause related to their duties, funeral expenses equivalent to an amount calculated by multiplying the average wage by 120 days shall be paid to a survivor who arranges funeral services (The main sentence of Article 71 (1) of the Industrial Accident Compensation Insurance Act).
Where a person other than survivors arranges funeral services
- When there is no survivor who will arrange funeral services or when a person other than survivors arranges funeral services due to extenuating grounds such as unknown whereabouts of a survivor, etc., the amount actually spent on the funeral services shall be paid to the person who arranges the funeral services pursuant to Chapter 4 Funeral Rites of the General Standard of Family Rites, within the limits of an amount equivalent to an amount calculated by multiplying the average wage by 120 days (The proviso to Article 71 (1) of the Industrial Accident Compensation Insurance Act and Article 44 (2) and (3) of the Regulations of Compensation Affairs).
The maximum and minimum amount of funeral expenses
- Where the funeral expenses exceed the maximum amount of 16,775,750 won or fall short of the minimum amount of 12,082,820 won, as prescribed by the Maximum and Minimum Amount of Funeral Expenses, such maximum amount or minimum amount shall be each deemed the funeral expenses (Article 71(2) of the Industrial Accident Compensation Insurance Act and Article 66(1) and (2) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act).
Prior Payment of Funeral Expenses
- In case where the employee is presumed to be dead due to an occupational or commuting accident, the minimum funeral expenses may be paid in advance upon the bereaved family’s claim, even before proceeding with the funeral. The priority of claimants (bereaved family) is as follows (Article 71(3) and Article 65 of the Industrial Accident Compensation Insurance Act and Article 66-2 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act):
· Spouse, children, parents, grandchildren and grandparents whose livelihood had been supported by the employee at the time of the employee's death;
· Spouse, children, parents, grandchildren, and grandparents whose livelihood had not been supported by the employee at the time of the employee's death, or siblings whose livelihood had been supported by the employee at the time of the employee's death;
· Siblings
- In case where the funeral expenses have been paid in advance, the priorly paid funeral expenses shall be deducted from the funeral expenses specified under Article 71(1) and (2) of the Industrial Accident Compensation Insurance Act (Article 71(4) of the Industrial Accident Compensation Insurance Act).
Exemption from public charges
- No public charges of the State or local governments shall be imposed on any money or valuables offered as funeral expenses (Article 91 of the Industrial Accident Compensation Insurance Act).
Prohibition of transfer, seizing, etc. of entitlement to funeral expenses
- Entitlement to funeral expenses may not be transferred, seized or offered as collateral (Article 88 (2) of the Industrial Accident Compensation Insurance Act).