South Korea's non-life insurance sector is introducing special discount provisions for auto insurance premiums in alignment with the government's two-day vehicle restriction policy, which aims to address oil price instability stemming from tensions in the Middle East.
Under this initiative, around 17m vehicles are expected to qualify for benefits. Car owners who voluntarily limit their driving as part of energy-saving efforts will receive a 2% refund on their annual insurance premiums.
Yesterday, the Financial Services Commission, the Korea Non-Life Insurance Association and leading non-life insurers unveiled the plan during the fourth meeting of the “Special Committee on Economic Response to the Middle East War,” held at the National Assembly Members’ Office Building in Yeouido, Seoul.
The special agreement was introduced in response to heightened volatility in global oil prices and to promote broader public participation in energy-saving efforts.
It is available to individuals with personal auto insurance policies but excludes business and commercial vehicles. Electric vehicles, which are not subject to the public vehicle restriction system, are also ineligible.
To ensure fairness, vehicles valued at KRW50m (approx. $34m) or more are likewise excluded from the programme.