Hello, this is Attorney Oh Seung-hyun of Cheongchul Law Firm.

After a traffic accident, when the insurer's claims adjuster explains the fault ratio and the insurance payout, many people accept those numbers as settled fact. However, it is not uncommon for the fault ratio and compensation proposed by the insurer to differ considerably from what a court would decide. It is truly regrettable to rush into a settlement when there is still room to obtain a more favorable outcome for the victim.

In this article, we look at disputes over fault ratios, the calculation of insurance payouts for residual disability, and the possibility of additional claims after a settlement, through actual traffic accident damages rulings.

Fault Ratios: The Insurer's Standard and the Court's Standard May Differ

① Taxi's Sudden Lane Change – 90% Fault Recognized, KRW 85 Million Awarded

In Daejeon District Court Case No. 2019Gadan137072 (April 22, 2022), a taxi made a sudden lane change and caused death or injury to a motorcycle rider. The court found the taxi 90% at fault and the motorcycle 10% at fault, and ordered damages totaling KRW 85.37 million. This is a case in which the court's decision was more favorable to the victim than the insurer's internal standard.

② Motorcycle Running a Signal – KRW 180 Million Awarded to the Injured Cyclist

In Jeonju District Court Gunsan Branch Case No. 2019Gadan57587 (January 12, 2023), a motorcycle that violated a traffic signal struck a bicycle and caused serious injuries. The court found the motorcycle 65% at fault and the bicycle 35% at fault, and damages totaling KRW 182.14 million were awarded to the victim. The motorcycle's insurer argued that the cyclist's share of fault was higher, but the argument was not accepted.

③ Wrong-Way Bicycle – Cyclist Found 90% at Fault

In Seoul Central District Court Case No. 2016Gadan5083835 (April 14, 2017), a bicycle traveling the wrong way collided with a motorcycle. Focusing on the violation of traffic rules by riding against traffic, the court found the bicycle 90% at fault and the motorcycle 10% at fault. Fault ratios can vary greatly depending on the specific facts of the situation at the time of the accident.

This is exactly why it is important to secure as much evidence as possible, such as dashcam footage, CCTV, and witness statements, immediately after the accident.

When Additional Claims Are Possible Even After Settlement

Unforeseeable Aftereffects – Limits on the Effect of a Settlement

Once you sign a settlement agreement with the insurer after a traffic accident, additional claims are generally not possible. However, courts recognize exceptions. In Seoul Central District Court Case No. 2016Gadan5072583 (June 30, 2017), the victim developed an unexpected additional residual disability after concluding the settlement. The court held that the effect of the settlement does not extend to "aftereffects that could not have been foreseen at the time of the settlement," and awarded additional damages of approximately KRW 29.56 million.

Even if the settlement agreement contains language such as "all claims for any future damages are waived," the court's position is that it may be regarded as invalid with respect to a disability that could not have been predicted at the time of the settlement. Before settling, be sure to confirm that any residual disability has been sufficiently determined.

When the Insurer Sues First – Action for Declaratory Judgment of Non-Existence of Debt

When a victim requests additional compensation, the insurer sometimes responds by filing an action for declaratory judgment of non-existence of debt, asserting that "we have no further obligation to pay." Many people are caught off guard when they receive such a complaint and fail to respond appropriately.

In Seoul Central District Court Case No. 2021Gadan25098 (January 30, 2023), the insurer filed such an action, but the court instead found that the amount already paid was too low and went so far as to order the return of unjust enrichment. If you receive a complaint for non-existence of debt from an insurer, do not leave it unattended; you must respond with the help of a specialized lawyer. Failing to respond or neglecting the case can lead to losing it.

Traffic Accident Disputes: Just Remember These

• Immediately after the accident: secure dashcam footage, CCTV, and witness information right away

• If you cannot accept the insurer's fault ratio, raise an objection in writing and then seek legal review

• If residual disability is a concern, settle only after treatment has sufficiently progressed

• If you receive a complaint for non-existence of debt, consult a specialized lawyer immediately

Closing

The fault ratio and insurance payout proposed by an insurer are not always fair. Courts make their own independent determinations based on the specific facts at the time of the accident and medical appraisals, and there are many cases in which the outcome is favorable to the victim. If you feel you have been treated unfairly in a traffic accident compensation matter, please request a free consultation with Cheongchul Law Firm.

Thank you.