[23] A Case of Abuse of Superior Position by Eight Non-Life Insurance Companies
KFTC Decision No. 2008-013
Byung-Joon Lee (Professor, Hankuk University of Foreign Studies)
In handling property damage associated with car accidents, eight non-life insurance companies did not pay compensation for car rentals and insurance payouts for indirect loss from automobile depreciation even though this was their obligation under the automobile insurance contracts. Regarding such conduct, the KFTC decided that these insurers provided disadvantages to the victims of the car accidents by unreasonably abusing their superior position on the grounds that the victims had to accept insurance payouts as calculated and paid by the insurers because the victims did not know well about the provision on damage compensation (standards of payouts) under the contracts (information imbalance) as well as indirect damage insurance payments, and that it was not possible for the victims to choose another insurance company for their compensation.