A statutory compulsory insurance under the LPG Safety Management and Business Act and the City Gas Business Act. It covers bodily and property loss to third parties from gas leaks, explosions or fires at LPG and city-gas filling, storage, sales and usage facilities. Non-compliance draws business suspension and fines of up to KRW 10m.
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 statutory compulsory insurance under the LPG Act, City Gas Business Act and High-Pressure Gas Safety Control Act Statutory compulsory insurance. Operators subject to the gas-safety laws — LPG filling/sales stations, gas-using multi-use facilities, specified gas-using facilities — must insure, and non-compliance draws business suspension and fines (KRW 3m / 6m / 10m for the first, second and third offences).
Vehicle filling stations, household LPG sellers.
Supply to specified gas-using and multi-use facilities.
Food courts, saunas, large restaurants.
Industrial high-pressure gas filling and transport.
| Death | per person KRW 80m |
|---|---|
| Injury | per person KRW 15m (differentiated by grade) |
| Permanent disability | per person KRW 80m |
| Property damage | per occurrence KRW 300m |
| Excess-limit cover | Above the compulsory limit (e.g. property KRW 500m, 1bn) |
|---|---|
| Own property damage | Damage to the insured's own facilities (combined with property insurance) |
| Employer's liability | Excess over workers' comp for employees on the premises |
| Gas-cylinder transport | Extension for incidents in transit |
| Policy period | 1 year |
|---|---|
| Insurers | DB · KB · Hyundai comparison quotes |
| Compulsory limit | Death KRW 80m / injury KRW 15m / property KRW 300m per occurrence |
| Turnaround | 2–3 business days |
| Statutory basis | LPG Safety Management and Business Act, City Gas Business Act, High-Pressure Gas Safety Control Act |
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.
The statutory mandatory area — five kinds of gas facility
Under the LPG Safety Management Act. The mandatory area for operators of filling, storage and sales facilities.
Under the City Gas Business Act. The mandatory area for city-gas suppliers and operators of usage facilities above a certain scale.
Under the High-Pressure Gas Safety Control Act. The mandatory area for industrial high-pressure gas manufacture, storage and sales facilities.
Gas-supply facilities of apartments, row houses and multi-household housing. Liability-sharing by the managing body should be reviewed.
Industrial gas usage facilities such as factories and plants. Usually designed together with general PL.
A leak at an apartment block's gas-supply facility led to reported carbon-monoxide poisoning in some households. The facility operator produced periodic safety-inspection records, and whether the city-gas supplier met its inspection duty became central to assessing the cause. As a mandatory area under the City Gas Business Act, cover was assessed per the wording, and proving the inspection records and the ventilation/appliance state at the time of the incident was central to the process. Because gas facilities carry a high risk of harm spreading to neighbours, combining an excess-limit endorsement is recommended.
Source: (General industry example) · Commercial insurance from the field #upcoming
Read the full analysis — the carbon-monoxide poisoning process (in progress)The wording and structure points facility operators most often overlook
The cycle and record-keeping duty for statutory periodic safety inspections (by the Gas Safety Corporation or city-gas supplier) differ by facility type. If a missed inspection has a causal link to the incident, it can be an exclusion, so systematising inspection records and certificate renewals is key.
LPG, LNG and high-pressure gas have different governing laws and compulsory limits, and partly separate wording structures. Identifying the law that applies to each facility and choosing the matching wording avoids gaps.
Carbon-monoxide poisoning is usually within cover, but the covered scope by cause — external leak, appliance defect, poor ventilation — differs by wording. The cause is often hard to establish, so checking the exclusion clauses in advance is needed.
The questions asked most when considering gas accident liability cover
Under the City Gas Business Act, High-Pressure Gas Safety Control Act and LPG Safety Management Act, operators of gas manufacture, storage, sales and usage facilities must take out insurance to cover others' bodily and property loss from a gas accident. The compulsory limit differs by facility type and scale, and proof of cover is required as a condition of permit renewal.
Third-party bodily injury (including death and permanent disability), third-party property loss, and poisoning incidents such as carbon monoxide from a gas leak, explosion or fire are usually covered. Legal-defence and emergency-measure costs from an incident are also included per the wording.
LPG and LNG (city gas) have different governing laws and different risk characteristics, so the wording structures are partly separate. With LPG under the LPG Safety Management Act, city gas under the City Gas Business Act and high-pressure gas under the High-Pressure Gas Safety Control Act, the compulsory limit and underwriting criteria differ, so the right wording must be chosen per facility.
Carbon-monoxide (CO) poisoning, as an incident from a gas leak or incomplete combustion, is usually within cover. However, the covered scope by cause — (1) external leak, (2) appliance defect, (3) poor ventilation — differs by wording, so a wording review is needed.
If failure to perform a statutory periodic safety inspection (by the Gas Safety Corporation or city-gas supplier) has a direct causal link to the incident, it can be an exclusion or a limit on cover assessment. Keeping inspection records and renewing certificates is key evidence in the post-incident process.
There is an area where statutory compulsory limits apply (by facility type and scale), and considering the size of a single loss and the chance of harm spreading to neighbours, the compulsory limit plus an excess-limit endorsement is usual. The compulsory limit differs by area — filling stations, city-gas usage facilities, high-pressure gas facilities, etc.
The insurer calculates it based on facility type (LPG filling station, city gas, high-pressure gas, apartment-block gas, etc.), scale, inspection records, past incident history and the surrounding environmental risk. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
