Insurance Complaints Surge Amid Disputes Over Fault and Settlement Payouts

Conflicts between insurance companies and drivers are increasing over fault determination and insurance payout calculations in the event of car accidents. As insurance complaints and legal disputes rise, discussions are underway regarding the reliability of related systems. In 2023, non-life insurance-related complaints totaled 48,281 cases, a 19.6% increase from the previous year. The number of appeals for fault ratio review in accidents has risen from approximately 102,000 in 2019 to about 156,000 in 2024, and the ratio of fault dispute review appeals to the number of car repairs has also increased from 3.2% in 2019 to 5.4% in 2024. Civil lawsuits against non-life insurance companies increased from 1,721 cases in the second half of 2021 to 2,213 cases in the second half of 2025.

An analysis of 7,003 major personal injury claims complaints from major non-life insurers between 2020 and 2025 revealed that the average outpatient treatment period for complaint-generating incidents was 16 days, more than double the average for general accidents (7.6 days). The average medical expenses for these incidents were 2.457 million won, about three times that of general accidents (820,000 won). A study by the Korea Insurance Institute analyzing 21,364 personal injury claims found that low-fault claimants (0-20% fault) achieved tangible benefits by initiating disputes. The Korea Insurance Institute suggested that lawsuits filed by some claimants might be a strategic move to secure additional insurance payouts.

Jeon Yong-sik, a senior research fellow at the Korea Insurance Institute, analyzed dispute situations related to insurance payment criteria. The insurance industry has highlighted the need to establish clear criteria for insurance payout calculations to reduce disputes.