Living Car Free - Cycling Insurance in South Korea

KOREAN TIMES ARTICLE:

By Yoon Ja-young
Staff Reporter

Bicycle riders are expected to get insurance coverage from later this year.

The Financial Supervisory Service has commissioned the Korea Insurance Development Institute to assess the risk ratio for insurance products covering bicycle accidents by November.

The plan followed an explosion of bicycle commuters cycling to office in the wake of a global oil price hike and growing health consciousness.

The country, however, hasn't backed up cyclists with enough infrastructure. There were 1,374 bicycle accidents last year, of which 69 were fatal, but cyclists have been marginalized from insurance coverage.

Bicycles are categorized as cars according to traffic law, and are subject to the same regulations as cars in case of accidents. If a cyclist collides with a pedestrian on a sidewalk or bicycle path, for example, the cyclist is liable. Cyclists might face criminal charges as they are not insured. Consequently, an increasing number of cyclists have been calling for insurance products.

Since there was no established risk ratio for bicycle accidents, it was difficult for insurers to develop products covering bicycle riders. Non-life insurers can develop insurance products for cyclists once the risk ratio is established, including premium and insurance money.

But there is also skepticism whether bicycle insurance would work. Insurers may be reluctant to sell the policies due to a relatively high loss ratio. Samsung Fire and Marine Insurance, for example, launched a product for bicycle riders in 1997, but suspended it after a few years due to growing insurance money payouts.

Though bicycles are more vulnerable to accidents, ascertaining who is responsible for an accident isn't always clear. Since bicycles are not registered, the potential for fraudulent claims is high.

chizpizza@koreatimes.co.kr


http://www.koreatimes.co.kr/www/news/biz/2008/08/123_29209.html

Is cycling insurance available in the US?
Is it expensive? What does it cover?
If it were available, would you be interested in it?

I dont think I would buy cycling insurance on top of my already excellent medical coverage here in Korea. In the states I would have to reconsider that as I can usually only afford minimal health care there. If the insurance covered theft I would be ALL OVER IT. However, I am sure that your premiums would be quite high if you had a nice bike and who knows what you would have to go through to get it. "Do you use a U-Lock? Oh well then you qualify for our U-Lock discount, jsut send us a reciept for the purchase of your U-Lock along with 3 photos of you actually using it!" Hurts my head just to think about the added complexity of an insurance policy for my bike.

What do you all think? Under what conditions would you insure your cycling habbit?

I kind of like having medical insurance, (i'm one of those lucky people) but it would be very hard for an insurance company to convince me to get any other kind of insurance. I'm not too worried about the chance that I might someday wish I had bicyclist's liability insurance, and my bike can be replaced for so little money (and is unattractive enough to thieves) that it makes no sense to pay money to insure the bike itself against being damaged or stolen.

I'm with cerewa.

I have good health coverage, which has covered about $25,000 worth of expenses from a bike accident I had more than 5 years ago (no car involved). I also don't think my liability exposure is very high, as it seems unlikely that I'll do expensive damage to property or to another person.

If I didn't have health insurance, I would look into bike insurance, if there was such a thing. At least it would cover one of the bases.

I have mixed feelings about this & true it hurts my head also - think of all the "REASONS" that "they" could find to make it MASSIVELY expensive.....

statistics make me leary

lofi

I have a few Korea friends who have this insurance and they say that they like it because it pays for all damages to cars, property, and people regardless of who is at fault. Apparently that is the part thats a big deal here. There are plenty of cycling accidents but it is often difficult if not impossible to figure out who is at fault and whose medical/car insurance should pay for injuries. Could have to do with the bicycle laws here, maybe bicycles dont have the right of way like pedestrians? Not too sure really. Why would I need this in addition to medical insurance?

I read that the insurance cost anywhere from 20,000 won to 100,000 won a year ($15.00-$75.00).

I guess you easily could be liable for damages you caused on a bike. For example, if you hit a car (your fault), you would be liable for scratches on the car. Even if you died in the crash, the car owner could conceivably sue your estate. Another example is if you hit a pedestrian, you might be responsible for his/her medical bills. If you rode over somebody's lawn and ruined the grass, they might sue you for the damages.

Why would you buy the insurance? It would make sense if you thought the chances of being sued were likely to be greater than the cost of the premium, or if you could not afford the costs of a lawsuit no matter what the likelihood.