South Korea's New 8-Week Rule for Auto Insurance Claims Sparks Medical Industry Backlash

South Korea's Financial Supervisory Service (FSS) is moving forward with a controversial "8-week rule" that would limit insurance payouts for minor injury patients in traffic accidents to an eight-week treatment period. The measure, scheduled for implementation in March 2026, has drawn sharp criticism from medical associations while gaining support from insurers seeking to curb fraudulent claims.

Background and Context

Under the current system, minor injury patients classified with injury grades 12-14 can receive insurance payouts without restrictions for up to four weeks after an accident. Beyond four weeks, insurers previously accepted simple one-line medical certificates stating "treatment is necessary" to continue payments. This approach has led to numerous cases where patients remained in hospitals for months following minor collisions, according to industry sources.

The FSS announced revised enforcement rules on December 30, 2025, establishing eight weeks as the deliberation standard for insurance payouts. The decision was based on data showing that over 90% of minor injury patients complete treatment within this timeframe. The regulatory body is accepting public feedback until February 8 before implementing the changes on March 1.

Key Figures and Entities

The Financial Supervisory Service, South Korea's financial regulator, is spearheading the reform. Insurance companies have largely welcomed the change, viewing it as a necessary tool to filter out what they describe as "fraudulent patients" who exploit the current system.

The Korean Medical Association has emerged as the primary opponent, condemning the measure as "an unlawful act" that "trades the legitimate right of traffic accident victims to receive proper treatment for insurance companies' profits." The association represents many clinics and hospitals that treat minor injury patients and has called for the complete withdrawal of the 8-week rule.

Legal and Financial Mechanisms

The new regulation creates a hard ceiling of eight weeks for insurance-covered treatment of minor injuries. This contrasts with the previous practice, where treatment duration was effectively at the discretion of healthcare providers. The FSS intends the rule to standardize what constitutes reasonable treatment duration for minor injuries while still ensuring adequate care for legitimate cases.

However, concerns have emerged within the insurance industry itself that the rule might have unintended consequences. An industry source warned that clinics could exploit the guideline by encouraging patients to "receive treatment up to eight weeks" regardless of medical necessity, potentially creating new inefficiencies.

International Implications and Policy Response

While specific to South Korea's insurance market, the debate reflects broader global tensions between controlling healthcare costs and ensuring patient access to necessary treatment. Many countries have struggled with similar challenges in balancing fraud prevention in auto insurance systems with appropriate medical care standards.

The controversy also highlights the difficulties regulators face when establishing standardized treatment protocols. The tension between medical autonomy and regulatory oversight continues to shape healthcare policy worldwide, with South Korea's approach offering another case study in this ongoing policy challenge.

Sources

This report is based on statements from the Financial Supervisory Service, the Korean Medical Association, and representatives from South Korea's insurance industry regarding the implementation of the 8-week rule for minor injury claims.