The Ministry of Land, Infrastructure and Transport said on the 4th that the revised Enforcement Decree of the Automobile Accident Compensation Guarantee Act passed the State Council of South Korea and will take effect on the 10th of next month.
The new decree was introduced to curb insurance payouts that had been excessively made to some so-called "freeloading patients." Starting with traffic accidents that occur after Sept. 9, minor patients with sprains or bruises who want treatment beyond eight weeks must undergo a review of the necessity of treatment by a medical professional at the Korea Automobile Accident Compensation Promotion Agency. When a patient submits review documents, such as a medical certificate, the insurance company and the mutual aid association request a review from the agency. The agency then notifies the patient, the insurance company and the mutual aid association of the result. If the patient disagrees with the outcome, they may apply to a government committee for another review by a medical professional. The review will be limited to minor patients with sprains and contusions. Pregnant women and infants under the age of 7 may continue treatment without going through the review process.
The ministry said it expects the system changes to reduce unnecessary insurance payouts caused by excessive treatment and ease the burden on policyholders. It also said the review by experienced medical professionals could make it possible to provide additional treatment for conditions that were not identified in earlier care.
Meanwhile, the cost of issuing review documents and the medical expenses incurred until the review is completed, including any delays, will be covered by insurers and mutual aid associations. The mutual aid association will also pay for the cost of issuing medical certificates for treatment extensions.
Kim So-hyung, compact@sportschosun.com
This article has been translated by GripLabs Mingo AI.
