On May 8, the General Insurance Association announced plans to introduce this special clause in line with the recent declaration of an oil resource security crisis under the 'National Resource Security Special Act.' The initiative aims to encourage energy conservation while reflecting the reduced risk of accidents due to decreased vehicle usage in insurance premiums.
The special clause will limit vehicle operation to one day a week based on the last digit of the vehicle's license plate. For example, vehicles with license plates ending in 1 or 6 will be restricted from driving on Mondays, while those ending in 2 or 7 will be limited to Tuesdays. The rule does not apply on weekends or public holidays.
Eligible participants include individual car insurance policyholders who meet the following criteria: submission of a Vehicle Odd-Even participation application, vehicle value under 50 million won, and exclusion of electric and hydrogen vehicles. Hybrid vehicles are eligible, but motorcycles are not.
Insurance companies will provide information on how to apply starting May 11 through text messages (SMS) and notifications. However, submitting an application does not automatically enroll participants in the special clause. The clause is expected to launch at the end of May, and applicants will need to complete a separate enrollment process through the insurance company's website or call center.
Compliance with the odd-even rule will be monitored using insurance companies' safe driving apps or connected car data. Insurers plan to collect only the minimum necessary information to verify compliance with non-driving days.
The discount rate is set at approximately 2% of the annual car insurance premium. The actual discount amount will be calculated based on the duration of participation in the odd-even system. For instance, if the participation period is 200 days, participants will receive about a 1.1% discount. Refunds will be issued within 10 days after the insurance policy expires.
However, if a vehicle is found operating on a non-driving day, the special clause may be canceled, and reapplication could be restricted. In the event of an accident occurring while driving on a non-driving day, participants may lose their discount benefits and face additional surcharges, although insurance payouts will still be processed normally.
An industry representative stated, "The insurance sector is actively participating in government policies aimed at addressing high oil prices. We expect consumers to engage actively, as this initiative can promote energy conservation while alleviating insurance premium burdens."
Additionally, those who enroll in the special clause during May can retroactively apply benefits from April 1. However, if an accident occurs on a non-driving day between April 1 and the application submission date, the discount period will only apply from the enrollment date, and any accidents occurring between the application submission and actual enrollment will restrict participation in the special clause.
* This article has been translated by AI.
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