[Photo from Ajou Economic DB]
Starting next month, individuals affected by electric vehicle fires, where the cause is unclear, can receive compensation of up to 15 billion won (approximately $11.3 million) for damages to surrounding vehicles or buildings. Electric vehicle owners will not need to go through any additional enrollment procedures or incur costs to receive this compensation.
The Ministry of Climate, Energy, and Environment announced on June 30 that it will implement a fire insurance program for electric vehicles starting July 1, which will cover third-party property damage up to 15 billion won. This initiative aims to alleviate public concerns regarding electric vehicle fires and promote the adoption of eco-friendly vehicles.
A key feature of this insurance is the significant increase in compensation limits for third-party damages caused by fires. If a fire occurs in an electric vehicle while parked or charging, resulting in damage to nearby vehicles or buildings, compensation will be provided for up to 15 billion won per incident, with a total annual limit of 45 billion won. Previously, the maximum coverage was set at 10 billion won, which has now been raised to better prepare for high compensation claims resulting from large fires.
The insurance will also cover damages from fires with unknown causes. Previously, it was difficult to receive compensation for electric vehicle fires unless the cause was clearly identified. However, moving forward, fires occurring in electric vehicles registered for less than ten years will be compensated regardless of the cause.
A pre-compensation and post-settlement method will also be introduced. Electric vehicle fires often take a long time to determine the cause, so victims will receive compensation upfront, with insurance companies settling the details later.
The total annual premium for this fire insurance program is set at 6 billion won. The government will provide an initial 2 billion won in funding, while the remaining 4 billion won will be shared among companies selling eligible electric vehicles this year. The insurance will be managed by DB Insurance, Hyundai Marine & Fire Insurance, and Samsung Fire & Marine Insurance.
The insurance benefits will automatically apply to all electric vehicles sold by participating companies that are registered within ten years. Vehicle owners will not need to apply separately or pay any fees to receive coverage in the event of an accident.
A list of participating companies and detailed terms will be available on the Zero-Emission Vehicle Integrated Website starting July 1. However, if vehicle owners have existing product liability insurance or fire insurance, those policies will take precedence based on their coverage scope.
Jeong Seon-hwa, Director of Green Transition Policy at the Ministry of Climate, Energy, and Environment, stated, "The government's financial support combined with voluntary participation from the automotive industry has established a public-private partnership to address fire damage. We aim to create a safe environment where people can use electric vehicles with confidence."
The Ministry of Climate, Energy, and Environment announced on June 30 that it will implement a fire insurance program for electric vehicles starting July 1, which will cover third-party property damage up to 15 billion won. This initiative aims to alleviate public concerns regarding electric vehicle fires and promote the adoption of eco-friendly vehicles.
A key feature of this insurance is the significant increase in compensation limits for third-party damages caused by fires. If a fire occurs in an electric vehicle while parked or charging, resulting in damage to nearby vehicles or buildings, compensation will be provided for up to 15 billion won per incident, with a total annual limit of 45 billion won. Previously, the maximum coverage was set at 10 billion won, which has now been raised to better prepare for high compensation claims resulting from large fires.
The insurance will also cover damages from fires with unknown causes. Previously, it was difficult to receive compensation for electric vehicle fires unless the cause was clearly identified. However, moving forward, fires occurring in electric vehicles registered for less than ten years will be compensated regardless of the cause.
A pre-compensation and post-settlement method will also be introduced. Electric vehicle fires often take a long time to determine the cause, so victims will receive compensation upfront, with insurance companies settling the details later.
The total annual premium for this fire insurance program is set at 6 billion won. The government will provide an initial 2 billion won in funding, while the remaining 4 billion won will be shared among companies selling eligible electric vehicles this year. The insurance will be managed by DB Insurance, Hyundai Marine & Fire Insurance, and Samsung Fire & Marine Insurance.
The insurance benefits will automatically apply to all electric vehicles sold by participating companies that are registered within ten years. Vehicle owners will not need to apply separately or pay any fees to receive coverage in the event of an accident.
A list of participating companies and detailed terms will be available on the Zero-Emission Vehicle Integrated Website starting July 1. However, if vehicle owners have existing product liability insurance or fire insurance, those policies will take precedence based on their coverage scope.
Jeong Seon-hwa, Director of Green Transition Policy at the Ministry of Climate, Energy, and Environment, stated, "The government's financial support combined with voluntary participation from the automotive industry has established a public-private partnership to address fire damage. We aim to create a safe environment where people can use electric vehicles with confidence."
* This article has been translated by AI.
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