Can You Claim Your Deductible from the Other Insurer in Shared Liability Accidents? Supreme Court of Korea to Hold Public Hearing

[Financial News] A public hearing will be held on the 4th of next month to determine whether, in car accidents involving shared liability, the insured party can claim the portion of the deductible they paid from the other party’s insurance company.
The First Division of the Supreme Court of Korea, presided over by Justice Shin Sookhee, announced on the 18th that it will hold a public hearing at 2 p.m. on the 4th of next month to address this issue in a damages claim lawsuit.
This marks the fifth time a public hearing has been held for a case handled by a division (a panel of four justices) rather than the full bench of the Supreme Court of Korea. It is the first such hearing in one year and two months since last October.
The plaintiffs in this case are insured parties who, after being involved in a traffic accident with mutual fault, paid a deductible of 500,000 won for vehicle repairs under their own auto insurance policy. They argue that the deductible also constitutes damage resulting from the accident and have sought compensation for it from the insurer of the other vehicle involved. The defendants are six major non-life insurance companies in Korea.
The deductible serves to prevent insured parties from making excessive insurance claims and helps keep auto insurance premiums at reasonable levels.
The plaintiffs lost in the first trial. The court ruled that since they had voluntarily agreed to pay the deductible as part of their auto insurance contract and paid it according to the agreement after the accident, it could not be considered uncompensated damage for which they could seek payment.
At the upcoming public hearing, four experts—two professors specializing in insurance and two industry practitioners—will appear as references to present their opinions supporting each side's arguments.
The court will also receive expert opinions on the issue from the Korea Fair Trade Commission (KFTC), the Financial Supervisory Service (FSS), and the Automobile Accident Liability Ratio Dispute Mediation Committee.
The key issue is whether, in cases of shared liability car accidents, the insured party can claim the amount of the deductible from the other driver or their insurance company as damages.

[email protected] Lee Hwan-joo Reporter