The government is tightening reins on excessive medical treatment and personal compensation, while fraudulent and inflated ‘property damage insurance’ claims for repair and rental costs are emerging as a new blind spot in car insurance. In particular, fake glass coating claims exploiting car accidents have become a major channel for insurance payout leakage.

On the 20th, according to the insurance industry, three major non-life insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and DB Insurance—paid a total of 29.85 billion Korean won in insurance payouts last year for glass coating and wrapping, including 19.85 billion Korean won for construction costs and 10 billion Korean won for rental fees. Considering the three companies’ combined market share (70%), the total industry payouts are estimated to exceed 40 billion Korean won.

This is the first time the scale of related insurance payouts has been compiled. Even after the Supreme Court ruled in 2019 and 2023 that glass coating and wrapping are not covered by car insurance, the leakage of insurance payouts grew, prompting major non-life insurers to establish their own insurance payout management codes last year, which revealed the situation.

The surge in glass coating claims is a fragment of ‘property damage insurance’ leakage. The insurance industry views cases where repairs are made on parts unrelated to the actual accident, inflating panel and painting times, or falsely claiming undamaged...

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