Hello. This is Attorney Oh Seung-hyun from the Law Firm Cheongchul.

‘After a long time has passed since the accident, I applied for an insurance claim, and the insurer says the statute of limitations has expired. Is there no way to deal with this?’

There are many cases where individuals who have received long-term treatment after unexpected accidents such as traffic accidents or industrial accidents apply for insurance benefits for permanent disabilities. However, insurance companies often deny payment, claiming that 'the statute of limitations has been completed because three years have passed since the date of the accident.'

In fact, according to Article 662 of the Commercial Act, the right to claim insurance benefits extinguishes after three years if not exercised. However, in cases like permanent disabilities where it is difficult to specify the occurrence date, the core issue becomes when to start counting the 'three years.'

Today, we will explore how the court interprets the commencement date of the statute of limitations for permanent disability insurance benefits, specifically the meaning of the 'date of awareness,' and how to respond to the insurer's assertion of the statute of limitations, focusing on case law.

1. Starting Point of the Statute of Limitations: 'The Day of the Accident' vs 'The Day of Awareness of the Accident'

The statute of limitations for the right to claim insurance benefits generally runs from the time the 'insurance accident occurs' (Seoul Central District Court ruling on April 8, 2024, case number 2023가단5045152). However, case law recognizes exceptions. When there are special circumstances where it is unclear whether an insurance accident occurred, and the claimant could not be aware of the fact without fault, the statute of limitations is considered to commence from the time when they could have known or became aware of the occurrence of the insurance accident (Seoul Central District Court ruling on June 13, 2024, case number 2023가합89031).

Permanent disability is a field where this 'special circumstance' is likely to be recognized. Immediately after the accident, one cannot be certain of the existence of a disability, and only after a long and painful treatment process can one finally assess whether there is a permanent disability.

2. What does ‘The Day of Awareness of the Permanent Disability’ Mean?: Analyzing Key Cases

Ultimately, the key is to prove 'when you became aware or could have become aware of the occurrence of the permanent disability.' This is judged differently depending on the case.

​CASE 1: When Disabilities Gradually Manifest or Are Difficult to Diagnose​

There are cases where a disability, which was unclear immediately after the accident, gradually appears during the treatment process, or cases like Complex Regional Pain Syndrome (CRPS) where the diagnosis itself is difficult. In such cases, the court tends to recognize the 'date of disability diagnosis' as the starting point of the statute of limitations.

• ​Diagnosis of Permanent Disability Years After the Accident​: In a case where symptoms manifested around 2013 after treatment began post-accident (2009), and a permanent disability diagnosis was obtained in 2014, the court determined that the insured became aware of the permanent disability from the date of the diagnosis (September 25, 2014), and the statute of limitations began from that point.

• ​When Symptoms Are Not Stabilized and Worsen​: The court views the meaning of 'after healing' as the state where no further treatment effects can be expected and symptoms are stabilized (Seoul Central District Court ruling on June 13, 2024, case number 2023가합89031). Therefore, if symptoms continue to change or worsen during treatment, the time the diagnosis indicates that the symptoms are finally stabilized and further improvement is unlikely may be considered the starting point. In one ruling, it was recognized that if a second diagnosis (2017) was received after continuous deterioration post-first diagnosis (2014), the date of the second diagnosis could be the starting point of the statute of limitations (Supreme Court ruling on July 13, 2023, case numbers 2019다214248, 2019다214255).

• In Cases of Mental Disabilities​: For mental disabilities caused by brain injury, it is generally assessed when symptoms stabilize after sufficient treatment (usually 2 years), and there is a case where it was recognized that the starting point was around when a specialist issued a disability diagnosis on August 19, 2016 (Seoul Central District Court ruling on September 21, 2017, case number 2017가합504102).

CASE 2: When Disabilities Are Clearly Expected Immediately After the Accident​

On the other hand, there are cases where it is objectively clear that permanent disabilities will remain based solely on the surgical and diagnostic information immediately after the accident.

• ​Artificial Joint Replacement Surgery​: If an artificial joint replacement surgery is performed immediately after an accident, it is recognized as a condition that corresponds to a 30% disability rating in the insurance classification table due to the surgery itself, without an additional permanent disability diagnosis; therefore, it was considered that the statute of limitations began from the surgery date or the accident date (Seoul High Court ruling on September 15, 2005, case numbers 2005나25047, 2005나25054).

• Awareness of Disability Occurring Immediately Post-Surgery​: There is also a case where it was judged that a patient who underwent spinal fixation could claim permanent disability insurance benefits from approximately one year after surgery (from September 7, 2010), considering the expiration of the two-year statute of limitations starting from then (Jeonju District Court ruling on April 12, 2018, case numbers 2017가합1928, 2017가합3009).

3. Key Points in Judging the Statute of Limitations

​① The Importance of the Permanent Disability Diagnosis​

A permanent disability diagnosis is not just a document confirming the disability status. It contains a medical judgment stating that 'treatment has been completed, and the current disability is permanent,' making it the strongest evidence to prove the date the insured objectively 'became aware' of their disability (Seoul Central District Court ruling on June 13, 2024, case number 2023가합89031).

② The Significance of Determining the Disability Payment Ratio​

Insurance policies usually contain a clause stating that 'the disability payment ratio is determined based on the physician's diagnosis on the date that is 180 days from the date of the accident.' Insurers may use this basis to claim that the statute of limitations runs from the point after 180 days post-accident. However, the court clearly states that this clause is merely a standard for calculating the scope of insurance benefits and is not a provision for determining the starting point of the statute of limitations (Ulsan District Court ruling on January 27, 2021, case number 2018가단72163).

③ Progress of Medical Lawsuits and the Statute of Limitations​

When a disability arises due to medical malpractice and a compensation lawsuit is filed against a hospital, insurers may claim that the statute of limitations for the right to claim insurance benefits progresses separately. However, there is a case where the court recognized the starting point of the statute of limitations at the time when the results of the court-ordered medical examination during the medical lawsuit process were revealed, considering it as the objective date of awareness of the occurrence of the disability (Daegu District Court ruling on October 20, 2016, case number 2016나302975).

4. Denial of Payment by Insurers, Waiting Will Result in Loss of Rights

Many people experience delays in review or denial of payment from insurers after applying for permanent disability insurance benefits, often for various reasons. In such cases, waiting with vague expectations like 'they will give it soon' is very risky.

Simply requesting payment from the insurer (known as a 'demand') does not suspend the statute of limitations indefinitely. ​According to Article 174 of the Civil Act, a lawsuit must be filed within six months following the demand to maintain the effect of the suspension of the statute of limitations​ (Seoul Eastern District Court ruling on September 30, 2021, case number 2018가합111760).

In fact, the court has ruled in many cases that the statute of limitations has been completed because of failing to file a lawsuit within six months after making the insurance claim (demand) despite the insurer denying payment (Seoul Central District Court ruling on June 10, 2025, case number 2024가단5059448). However, in exceptional cases where the insurer's request for a delay is seen as having caused this, it is recognized that a lawsuit must be filed within six months from the time of receiving the insurer's final response. But this is an exceptional case and hard to prove.

5. Conclusion

In conclusion, the calculation of the statute of limitations for permanent disability insurance benefits is very complex and contentious. If the insurer refuses to pay benefits simply because three years have passed since the accident date, do not give up and consult a legal expert immediately to examine when your 'true' statute of limitations commencement point is and whether there are legal advantages in disputing this. Taking active measures such as filing a lawsuit is essential to protect your rights.

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