The Association of Korean Medicine (AKOM) and the Ministry of Health and Welfare both voiced differences over the Ministry of Land, Infrastructure and Transport (MOLIT)'s push for the "eight-week rule" in auto insurance, slowing discussions. The Ministry of Health and Welfare is concerned that health insurance spending will increase after the rule takes effect and is asking for safeguards. The Korean medicine community maintains that it cannot support the eight-week rule until the criteria for classifying minor-injury patients are overhauled. With many issues the Ministry of Land, Infrastructure and Transport (MOLIT) must negotiate to implement the eight-week rule, a specific start date is unlikely to be set anytime soon.
The eight-week rule requires patients with minor injuries from car accidents (injury grades 12–14) to submit an additional medical certificate and undergo a separate review if they receive treatment beyond eight weeks after the accident. The non-life insurance industry sees rising treatment costs for minor-injury patients as one of the main causes of worsening auto insurance loss ratios and believes the rule can help improve the situation.
According to the financial industry on the 16th, the Ministry of Health and Welfare recently asked the Ministry of Land, Infrastructure and Transport (MOLIT) to prepare safeguards so that health insurance's fiscal burden does not increase excessively due to the eight-week rule. While it agrees with the rule's intent, it is concerned that if policyholders who fail the review after eight weeks continue treatment, the expense will shift from auto insurance to health insurance, increasing the fiscal burden.
The Association of Korean Medicine (AKOM) also opposes implementing the eight-week rule, calling for a reclassification of minor injuries. The Korean medicine community argues it is a problem that injuries requiring long treatment, such as rotator cuff tears, are categorized as minor. It says the criteria for classifying minor-injury patients need to be reestablished and that it will continue to oppose the rule unless this step is taken.
The Ministry of Land, Infrastructure and Transport (MOLIT) intends to push the eight-week rule under the current grading system. Although the ministry is conducting a study to reestablish the 1–14 injury grading, it is expected to take at least one year and six months from completion of the study to actual application. As it cannot delay the eight-week rule for that period, the ministry plans to proceed with consultations under the existing classification. For now, that means an agreement between the ministry and the Association of Korean Medicine (AKOM) appears unlikely.
Non-life insurers argue the eight-week rule should be implemented quickly as auto insurance losses keep growing. In the first quarter, the combined auto insurance result of the five major non-life insurers (Samsung Fire & Marine Insurance, DB Insurance, Meritz Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance) showed a 46.1 billion won deficit. The five companies' cumulative auto insurance loss ratio for April this year was tallied at 85.1%. The industry generally sees an 80% loss ratio as the break-even point.
An official at the Ministry of Land, Infrastructure and Transport (MOLIT) said, "We will coordinate views with related agencies and stakeholders under the current injury classification system."