Five insurance companies handle $1 billion in aviation insurance

Financial authorities have announced that they will quickly pay insurance premiums after the landing accident at Jeju Air Muan Airport caused massive casualties. It has been found that Jeju Air will receive more than 1.5 trillion won in compensation through insurance. A total of five insurance companies share the liability, with Samsung Fire taking the largest share. The Financial Services Commission (FSC) said on Monday that the Jeju Air plane that crashed at Muan International Airport had a total of 1.03651 billion dollars in aviation insurance. According to statistics, the limit of liability guarantee is 1 billion dollars (about 1.472 trillion won), and the limit of compensation for damage to the aircraft is 36.51 million dollars (about 53.7 billion won). The liability for the accident will be divided among five insurance companies. The amount of compensation is different for each insurance company, but 55 percent of Samsung Fire and Marine Insurance companies are responsible for the compensation. In addition, KB damage insurance (26 percent), DB damage insurance (13 percent), Meritz Fire Insurance (3 percent), and Asiana Damage Insurance (3 percent) will also be covered. Previously, these insurance companies jointly underwrote aviation insurance for the aircraft involved in the accident. The exact size of the compensation has yet to be determined. The amount of compensation to be paid by each insurance company can be calculated if the accident and the responsibility are found out through on-site investigation. It is highly likely that a large amount of liability will be levied for the accident, but insurance companies do not need to pay the entire amount. This is because insurance companies can spread the risk of large-scale insurance payments through contracts with reinsurers. Samsung will only have to pay 0.8 percent of the total liability for the accident. Overseas reinsurance companies plan to pay the remaining 99.2 percent to Samsung Fire. The financial authorities will establish a rapid compensation center at the Life and Damage Insurance Association to facilitate the application of insurance benefits such as travelers insurance. The rapid compensation center can check whether the victim has signed up for insurance and apply for and pay insurance benefits. Insurance companies will give priority to insurance insurance review and payment for victims.