The Road Traffic Act governs this package cover for specialist and general driving academies against accidents during student instruction — a comprehensive package. Combined cover for instructor liability, student injury, instruction vehicles and facility fire under a single policy.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A driving-academy package that bundles the core risks — accidents during student instruction, instructor on-duty accidents, instruction-vehicle collisions and fires, academy facility damage, and third-party liability — on a modular basis.
Large accredited academies
Small road-driving academies
Test-administration operators
Motorcycle and scooter instruction
Road Traffic Act Article 108 (driving academies) and its Enforcement Rule
| Road-driving only | Road-driving accidents separately |
|---|---|
| Motorcycle extension | Motorcycle academies |
| Night-instruction endorsement | Night and adverse-weather instruction |
| Policy period | 1 year |
|---|---|
| Insurers | KB |
| Limits | Differentiated by academy size |
| Turnaround | 1–2 weeks |
From several million to tens of millions of KRW per year, by academy size, number of vehicles and number of students.
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; the main exclusions are summarised on this page. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Common situations in driving-academy operation — a five-scenario self-check
Road and skills instruction involves inexperienced students driving directly, so there is a constant risk of instruction-vehicle collisions and contact accidents.
An accident while an instructor or examiner rides along for instruction or assessment can lead to the academy's liability.
Fire, theft and defect incidents at academy facilities — teaching halls, skills courses, parking — lead to facility damage and third-party liability.
Motorcycle and scooter instruction differs in accident pattern from car instruction, so a motorcycle extension should be considered separately.
Instruction at night or in rain has higher accident risk, so a design suited to the operating hours — a night-instruction endorsement — is needed.
A driving academy easily sees “an accident a student causes while driving” as the student's responsibility, but accidents during instruction are bound up with the academy's management and supervision responsibility. Instruction-vehicle collisions, accidents while an instructor or examiner rides along, and accidents from defects in the skills course or fixtures can all lead to the academy's liability. Driving academy package insurance bundles student injury during instruction, instructor and examiner on-duty accidents, instruction-vehicle damage, academy facility damage and third-party liability into one design. However, you should also understand that accidents while breaching statutory requirements — operating with unqualified instructors, an unlicensed student road driving — fall within the exclusions.
Source: (standard insurance-textbook scenario)
The wording and structure points decision-makers most often overlook
Accidents while operating with unqualified instructors or during an unlicensed student's road driving are excluded. Separately from holding cover, the operating requirements of the Road Traffic Act must be met.
Damage to the instruction vehicle itself (own vehicle) and liability for loss caused to others are separately covered. Check which modules to include for your vehicles and operation.
Road-driving-only, motorcycle instruction and night/adverse-weather instruction can leave gaps under base cover alone. Check that the endorsements matching your actual instruction are included.
The questions asked most when considering driving academy package insurance
Where general academy liability centres on user compensation during facilities and instruction, driving academy package insurance — suited to students driving vehicles themselves — bundles instruction-vehicle damage, road-driving accidents and ride-along instructor/examiner accidents into one design.
Road-driving accidents during lawful instruction can be designed into cover. However, accidents breaching statutory requirements — an unlicensed student road driving — are excluded, and you should check whether the road-driving-only endorsement is included.
Own-vehicle and own-body damage to the instruction vehicle can be designed as a module of the package. Check inclusion against the details of the instruction vehicles held.
Motorcycle and scooter instruction, differing in accident pattern from car instruction, is handled by a motorcycle extension. Check that the extension matching the vehicle types taught is included.
Operating with unqualified instructors, road driving by an unlicensed student, instruction under alcohol or drugs, and clear breach of the academy's safety-management duty are excluded. Lawful operation under the Road Traffic Act is the premise of cover.
The insurer calculates it based on academy size, number of instruction vehicles, number of students, instruction type (road, motorcycle, night), the module structure and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
