Jeonbuk launches automatic accident and fire insurance for 248,000 small businesses
In short
Jeonbuk Special Self-Governing Province and the Jeonbuk Economic and Trade Promotion Agency said they will run a “small business comprehensive insurance” programme for one year, covering about 248,000 small business owners in the province with annual revenue of 300 million won or less. The cover includes injury consolation payments of up to 400,000 won, fire insurance of up to 50 million won and fire liability of up to 10 million won, with no application or premium required. The province said the programme is the first project of an insurance-industry mutual benefit fund pursued with the Financial Services Commission and the non-life insurance association.
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Jeonbuk Special Self-Governing Province and the Jeonbuk Economic and Trade Promotion Agency will operate a “small business comprehensive insurance” programme for one year, the two bodies said on October 6. The scheme is aimed at easing the burden on small business owners from unexpected accidents and fires. [ 2 ]
About 248,000 small business owners with workplaces in the province and annual revenue of 300 million won or less are eligible, according to Yonhap. The insurance covers three items: injury consolation payments of up to 400,000 won, mutual-benefit fire insurance of up to 50 million won, and fire (property) liability of up to 10 million won. Business owners receive the benefits automatically, without a separate application or any premium payment, the report said. [ 1 , 2 ]
Yonhap said the programme is part of the “small business sturdy insurance support project”, described as the first project of an insurance-industry mutual benefit fund pursued jointly by the province with the Financial Services Commission and the non-life insurance association. When an accident occurs, owners can be told through the Jeonbuk Mutual Prosperity Comprehensive Insurance Integrated Center whether they can claim, what the procedure is and which documents are required. [ 2 ]
Yoo Hee-sook, head of the province’s corporate investment support office, said the province “will continue to strengthen the social safety net so that small business owners can run their businesses with peace of mind”, according to Yonhap. The business daily Kukmin Ilbo, which published a headline report without article text, likewise highlighted the number of owners covered without premiums and fire cover of up to 50 million won. The documents do not state the cost of the programme or how the fund behind it is financed. [ 1 , 2 ]
Why it matters
The programme puts an automatic social safety net in place for small businesses in Jeonbuk without premiums or applications, which the province says is meant to let owners operate with less risk from accidents and fires. Because it is described as the first project of an insurance-industry mutual benefit fund, it may serve as a template for similar provincial schemes, although the documents give no figures on cost or scale of funding. It is a provincial measure, so its direct effect is limited to businesses registered in Jeonbuk.
Key facts
- Jeonbuk Special Self-Governing Province and the Jeonbuk Economic and Trade Promotion Agency will run a small business comprehensive insurance programme for one year, announced on October 6. [ 2 ]
- About 248,000 small business owners with workplaces in the province and annual revenue of 300 million won or less are eligible. [ 1 , 2 ]
- Cover consists of three items: injury consolation payments of up to 400,000 won, mutual-benefit fire insurance of up to 50 million won, and fire (property) liability of up to 10 million won. [ 2 ]
- Enrolment is automatic, with no separate application and no premium burden on business owners. [ 1 , 2 ]
- The programme is part of the “small business sturdy insurance support project”, described as the first project of an insurance-industry mutual benefit fund pursued jointly with the Financial Services Commission and the non-life insurance association. [ 2 ]
- Claims and procedures are handled through the Jeonbuk Mutual Prosperity Comprehensive Insurance Integrated Center. [ 2 ]
Confirmed by several sources
Still unclear
- The cost of the programme and how the mutual benefit fund is financed are not stated. Only one document describes the funding arrangement, and it gives no financial figures.
- The detailed coverage limits — 400,000 won for injury, 50 million won for fire and 10 million won for fire liability — appear in a single document. These specifics come from one outlet only; the second document is a headline without article text.
- Whether owners can opt out of the automatic coverage is not addressed. The documents say enrolment is automatic but do not mention an opt-out or any exclusions.
What local media are saying
Timeline, local time
- Kukmin Ilbo publishes its report on automatic coverage for 248,000 Jeonbuk small business owners. [ 1 ]
- Yonhap reports that Jeonbuk province and the Jeonbuk Economic and Trade Promotion Agency will run the comprehensive insurance programme for one year. [ 2 ]
- The province announces the programme, saying it is the first project of an insurance-industry mutual benefit fund. [ 2 ]