The Ministry of Land, Infrastructure and Transport Metropolitan Transport Commission (Metropolitan Commission) will develop a special auto insurance rider that discounts premiums based on K-Pass usage. The aim is to offer a car insurance premium reduction benefit in addition to fare refunds for public transit users.
On the 21st, according to the Ministry of Land, Infrastructure and Transport, the Metropolitan Commission will sign a memorandum of understanding (MOU) for "developing an auto insurance premium discount product for K-Pass users" at the Korea Trade Insurance Corporation (K-sure) in Jongno-gu, Seoul. Chairperson Kim Yong-seok of the Metropolitan Commission, Korea Transportation Safety Authority (TS) President Jeong Yong-sik, General Insurance Association of Korea Chair Lee Byeong-rae, and the heads of four major non-life insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—are expected to attend the ceremony.
The agreement includes developing a special rider that discounts premiums for K-Pass subscribers who regularly use public transit. The four participating insurers already operate discount riders for public transit users and plan to upgrade and launch products centered on K-Pass users going forward. The Ministry of Land, Infrastructure and Transport said it will expand partnerships to other insurers starting with this agreement.
K-Pass is a public transit fare refund service introduced in May to reduce people's transportation cost burden. If a person uses public transit such as buses or subways 15 or more times a month, a certain percentage of the fare is refunded.
The refund rate is 20% for the general public, 30% for youth, and 53.3% for low-income households, with 30% for two-child households and 50% for households with three or more children. An official at the Ministry of Land, Infrastructure and Transport said, "Next year, we plan to introduce a 'public transit flat-rate pass (tentative name)' that fully refunds those who have public transit expenditure above a certain amount."
Chairperson Kim Yong-seok of the Metropolitan Commission said, "With this agreement, K-Pass users can expect to save on public transit fares while also cutting auto insurance premiums," adding, "We will strengthen cooperation across various sectors so it can take root as a representative public transit card that eases people's cost of living."