Legal obligation to insure a motor vehicle
Legal obligation to obtain liability insurance for compensation of human damage
- The owner of a motor vehicle shall join a liability insurance or mutual aid cooperative, which in turn assumes responsibility for damages pertaining to death or injury (in the case of death, one who has a right to compensation) within a given financial limit (in the case of death, 150 million won)(Article 5(1) of the Guarantee of Automobile Accident Compensation Act, Article 3 of the Enforcement Decree of the Guarantee of Automobile Accident Compensation Act).
· Passengertransport service providers, motor vehicle rental business operators, truckingtransport business operators, construction machinery rental business operators,and last mile delivery service operators shalljoin another insurance or mutual aid cooperative that assumes responsibilityfor every amount of damages exceeding the limit of compensation liability andwhich is not less than KRW 100 million per one person (Article 5 (3) of theGuarantee of Automobile Accident Compensation Act).
Legal obligation to insure a motor vehicle for compensation for material damage
- In addition to subscribing to liability insurance or a mutual aid cooperative, the owner of a motor vehicle shall subscribe to another insurance or mutual aid cooperative which assumes responsibility for damages caused by an accident with a liability limit of KRW 10 million per one case, for cases where the driving of a motor vehicle destroys or impairs another person’s property (Article 5(2) of the Guarantee of Automobile Accident Compensation Act).
Sanctions against violations of the legal obligation to purchase an insurance policy
Order to submit documents
- Governor of Special Self-Governing Province, Special Self-Governing Mayor, and the head of a Si/Gun/Gu (Refers to the mayor of the autonomous district. Hereinafter referred to as "the head of a Si/Gun/Gu") order a motor vehicle owner who has failed to purchase a mandatory insurance policy to purchase a mandatory insurance policy and present the x-documents verifying such purchase, fixing a deadline of 10 to 15 days (Article 6(3) of the Guarantee of Automobile Accident Compensation Act).
Retention of a registration number plate in custody
- The head of a Si/Gun/Gu may keep in custody the registration number plate of a motor vehicle which is not covered by mandatory insurance (Article 6(4) of the Guarantee of Automobile Accident Compensation Act).
- A motor vehicle without a registration number plate shall not be driven under any circumstances. Violation of this provision shall be punished by a fine for negligence of not exceeding KRW 2,500,000 on the number of violation basis (Article 10 (4), Subparagraph 1 of Article 84(2) of the Motor Vehicle Management Act, Enforcement Decree of the Motor Vehicle Management Act, Article 20 and Attached Table 2 no.2).
Prohibition of operation
- A motor vehicle which is not covered by mandatory insurance shall not be operated on a road (Article 8 of the Guarantee of Automobile Accident Compensation Act).
- The owner of a motorvehicle who operates his/her vehicle without being covered by mandatoryinsurance shall be punished by imprisonment of not more than 1 year or apenalty of not more than 10 million won (Article 8 and subparagraph2 of article 46(3) of the Guaranteeof Automobile Accident Compensation Act).
Imposition of fines for negligence
- The fines imposed for failure to insure a motor vehicle are presented in the following table (Article 5 of the Guarantee of Automobile Accident Compensation Act, Enforcement Decree of the Guarantee of Automobile Accident Compensation Act, Article 36 and Attached Table 5).
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Classification
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Type of motor vehicle
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Content
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Failure to purchase mandatory insurance according to Article 5(1) of the Guarantee of Automobile Accident Compensation Act (bodily injury liability)
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Two-wheeled motor vehicles
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Uninsured period of not more than 10 days: KRW 6,000 Uninsured period exceeding 10 days: KRW 6,000 plus KRW 1,200 per one day from 11thday(The sum total of the fine for negligence shall not exceed KRW200,000 per one vehicle.)
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Private motor vehicles
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Uninsured period of not more than 10 days: KRW 10,000 Uninsured period exceeding 10 days: KRW 10,000 plus KRW 4,000 per one day from 11thday(The sum total of the fine for negligence shall not exceed KRW600,000 per one vehicle.)
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Motor vehicles used for business purposes
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Uninsured period of not more than 10 days: KRW 30,000 Uninsured period exceeding 10 days: KRW 30,000 plus KRW 8,000 per one day from 11thday(The sum total of the fine for negligence shall not exceed KRW1,000,000 per one vehicle.)
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Failure to purchase mandatory insurance according to Article 5(2) of the Guarantee of Automobile Accident Compensation Act (property damage liability)
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Two-wheeled motor vehicles
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Uninsured period of not more than 10 days: KRW 3,000 Uninsured period exceeding 10 days: KRW 3,000 plus KRW 600 per one day from 11thday (The sum total of the fine for negligence shall not exceed KRW100,000 per one vehicle.)
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Private motor vehicles
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Uninsured period of not more than 10 days: KRW 5,000 Uninsured period exceeding 10 days: KRW 5,000 plus KRW 2,000 per one day from 11thday (The sum total of the fine for negligence shall not exceed KRW300,000 per one vehicle.)
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Motor vehicles used for business purposes
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Uninsured period of not more than 10 days: KRW 5,000 Uninsured period exceeding 10 days: KRW 5,000 plus KRW 2,000 per one day from 11thday(The sum total of the fine for negligence shall not exceed KRW300,000 per one vehicle.)
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Failure to purchase mandatory insurance according to Article 5(3) of the Guarantee of Automobile Accident Compensation Act (mandatory for motor vehicles used for business)
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Business motor vehicles under Article 5(3) of the Guarantee of Automobile Accident Compensation Act
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Uninsured period of not more than 10 days: KRW 30,000 Uninsured period exceeding 10 days: KRW 30,000 plus KRW 8,000 per one day from 11thday(The sum total of the fine for negligence shall not exceed KRW1,000,000 per one vehicle.)
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