Posted October. 20, 2005 06:16,
Those who are caught violating traffic regulations, including speeding and signal violations, two times or more will have to pay up to 20 percent (five percent per violation) more in premiums for automobile insurance. If one is guilty of drunk driving, running from the scene of an accident, or driving without a license, just one violation will cost the person 20 percent increase in insurance premiums.
According to the Financial Supervisory Service (FSS) and non-life insurance businesses Wednesday, the Korea Insurance Development Institute (KIDI) and non-life insurers came up with an amended bill on how to apply traffic violation records to set the insurance rate.
When the KIDI decides on the amended bill and the FSS approves, the rate for premiums will be set. The new rate will be based on driver violation records over one year, from May this year to April next year, and will be applied to new insurance holders starting next September.
The first violation will be forgiven, but starting with the second infraction, violators will have to pay five percent more per violation.
The violations subjected to these penalty premiums include drunk driving, driving without a license, running from the scene of an accident, signal violations, crossing the median line, railroad crossing violations, driving on the sidewalk, speeding, passing violations, endangering the safety of pedestrians, and not preventing passenger falls.
One violation of running from the scene of an accident or driving without a license will be subjected to an additional 20 percent premium payment.
This measure was toned down from the original plan of the insurers and the FSS, which was to raise premiums by ten percent per violation up to 30 percent, maximum.