A Comparative Study on the New Zealand No-Fault Automobile Insurance

Abstract

Korea’s motor vehicle insurance in relation to personal injuries, insufficient compensation for victims, inappropriate compensation for insureds, and due to rising number of lawsuits by insurers regards to their compensation for damages, unnecessary social cost is disbursed. This is a limitation of tort law which is based on the negligence, and of Liability insurance on motor vehicle. Due to the improvement of technology, nowadays transportations are traveling fast which benefits the drivers as they can save time, however, this causes accidents which brings serious injuries to victims. Accident can happen to every drivers, hereby, the current compensation scheme which is based on the negligence shell be changed to so called ‘No-fault’ system. This system helps victims who are injured from an accident to quickly receive treatment and undergo rehabilitation without finding who is at fault, so they can go back to the workforce as soon as possible. It can be a challenge for changing from a tort law based compensation scheme for physical injuries to a No-fault compensation scheme not only to victims but also to offenders as well. However, offenders shell also be seen as a member of our society. Thereby, any person who are injured from an accident can receive a treatment and undergo rehabilitation to be able to return and contribute to the society as soon as possible. New Zealand Government who recognized the importance of No-fault compensation scheme which is based on the fundamentals of social community, have enacted Accident Compensation Act 1972 and up until today, it provides a compensations to people who are injured from a motor vehicle accident. The writer have been researching the No-fault system operated by New Zealand’s Accident Compensation Corporation in order to resolve and amend problems that Korea’s motor vehicle compensation scheme have. As a result, Korea’s motor vehicle compensation system can be simplified as New Zealand’s No-fault system, especially the limitation of the tort law system on the autonomous vehicles can be overcome. However, as compensations are given to injured people, victims’ right to sue against offenders shell be limited in order to reduce the social cost arising out from the lawsuits.