A institutional gap in which children who die in disasters cannot receive death insurance benefits even if they are enrolled in local governments' citizen safety insurance has been raised for improvement discussions. This is because the current Commercial Act renders insurance contracts covering the death of persons under 15 void, repeatedly creating blind spots in compensation at disaster sites.

Government Discusses Amendment Plans for Article 732 of the Commercial Act

On September 21, the Office of the Prime Minister held a meeting chaired by Na Seung-chul, Director of the Civil Affairs Office, attended by relevant agencies including the Ministry of Justice and the Financial Services Commission, to discuss plans to amend Article 732 of the Commercial Act.

Under the current Commercial Act Article 732, insurance contracts that cover the death of persons under 15 as an insured event are rendered void. This provision also applies directly to group insurance policies that local governments enroll in to prepare residents for disaster damage. As a result, if a victim who dies in a disaster is under 15, they cannot receive death coverage under citizen safety insurance.

Trigger for Amendment Review: July Flood Preparedness Field Inspection

The government's review of the need to amend this provision was prompted by a field inspection on flood and storm preparedness conducted in July. At the time, the Civil Affairs Office of the Office of the Prime Minister heard from local government officials about blind spots in compensation that have emerged in the operation of disaster insurance.

Local government officials said they enroll in insurance to support residents' recovery from disaster damage, but under current law, insurance benefits cannot be paid for victims under 15, and they requested institutional improvements.

Compensation Gap Revealed in the Pohang Disaster During Typhoon Hinnamnor

A representative case where the problem actually surfaced was the Pohang underground parking lot disaster that occurred during Typhoon Hinnamnor in September 2022. At the time, a middle school student was found dead in an underground parking lot of an apartment complex in Pohang while helping his mother escape. Although Pohang City was enrolled in citizen safety insurance, the bereaved family could not receive death benefits from the insurance because the deceased student was 14 years old. An insurance system designed to cover disaster victims ultimately could not be applied to the family of the young victim.

Repeated in the December 29 Passenger Plane Disaster... Support Basis Established Through Special Act

A similar situation was repeated in the passenger plane disaster that occurred on December 29, 2024. At the time, eight victims under the age of 15 were excluded from death coverage under local governments' citizen safety insurance pursuant to Article 732 of the Commercial Act.

Subsequently, a basis for supporting these victims was established through a separate special act. Article 11 of the Special Act on Relief and Support for Victims of the December 29 Passenger Plane Disaster stipulates that the state may pay special support funds to victims under 15. The special support funds are required to take into account the payout levels of insurance or mutual aid programs in which local governments enroll residents as policyholders. This is a case in which a compensation issue unresolved within the existing citizen safety insurance system was addressed through separate legislation.

Amendment Direction and Implementation Timing Still Undetermined

The government's discussion of amending the Commercial Act at this interagency meeting was also intended to resolve the problem of similar compensation gaps recurring whenever disasters occur. However, this meeting was only a stage of interagency discussions for the legislative amendment, and no specific amendment proposals or implementation timelines were presented.

Depending on how Article 732 of the Commercial Act is amended in the future, changes may also occur in the scope of death coverage under local governments' disaster group insurance.

[This article was written based on materials from the Office of the Prime Minister regarding the interagency meeting, with partial assistance from AI. Whether the law will be amended and the actual possibility of insurance payouts may vary depending on future legislation and individual insurance contract terms.]