A statutory compulsory insurance under Article 23 of the Foreign Worker Employment Act. An employer of E-9 (non-professional employment) and H-2 (visiting employment) foreign workers must enrol, supplementing industrial-accident insurance to additionally cover a foreign worker's site accident (death, injury, disability).
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 Article 23 of the Foreign Worker Employment Act. An employer of E-9 (non-professional employment) and H-2 (visiting employment) foreign workers must enrol, supplementing industrial-accident insurance to additionally cover a foreign worker's site accident (death, injury, disability).
Employing E-9 visa foreign workers.
Including seasonal workers.
Employing H-2 visiting-employment compatriots.
| Repatriation extension | By home-country actual cost |
|---|---|
| Ordinary workers' accident combination | Additional liability beyond industrial accident |
| Interpretation/response support | Multilingual accident response |
| Policy period | By employment-contract period |
|---|---|
| Insurers | AIG · Chubb · DB · KB · Meritz · Hyundai (compared) |
| Compulsory limit | Death / disability by MOEL notice criteria |
| Turnaround | 2–4 business days |
| Legal basis | Foreign Worker Employment Act Article 23 |
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; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. 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.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
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.
Compulsory area + five site types
Manufacturing employing E-9 visa foreign workers is the core compulsory area.
Including seasonal workers — a compulsory enrolment area.
Employing foreign workers at high-risk construction sites.
Sites employing H-2 visiting-employment compatriots.
Sites needing a multilingual accident-response system in advance.
At a manufacturing site, an E-9 visa foreign worker suffered a machine-entrapment accident leaving disability. Industrial-accident insurance gave the first-tier compensation, and under this compulsory wording the employer's additional liability under the Foreign Worker Employment Act (consolation payment, repatriation cost) was reviewed. In the home-country repatriation, incidental costs — airfare, companion cost, treatment handover — arose and were handled within the wording limit. The language barrier meant interpretation support was needed to communicate with the worker/bereaved, and the multilingual accident-response system the employer had prepared in advance helped shorten the process. A case showing that accident response at a foreign-employing site hinges on the combination of industrial accident + this wording + a process-support system.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Non-enrolment of the Article 23 compulsory cover is subject to a fine/penalty and is a ground to refuse the employment-permit application/renewal. Complete enrolment at the foreign worker's entry, and manage the renewal/contract-change timing.
On an accident, the language barrier delays communication with the worker/bereaved, home-country family contact and the repatriation process. Preparing multilingual guidance, interpretation support and a home-country emergency contact in advance is favourable for both the process and underwriting.
Body/remains repatriation on death and home-return cost on disability differ greatly by home country (airfare, companion, quarantine). The wording's compulsory limit may not meet the actual repatriation cost, so review the repatriation cost by foreign-worker visa and consider supplementing the limit.
The questions decision-makers ask most when considering foreign workers' accident liability insurance
Under Article 23 of the Act on the Employment, etc. of Foreign Workers (the Foreign Worker Employment Act), an employer of foreign workers (E-9, H-2 visas, etc.) has a duty to insure against death/disability accidents. Non-enrolment is subject to a fine/penalty and is a condition of the employment-permit application/renewal.
Industrial-accident insurance is the first-tier compensation covering the occupational accidents of all workers (including foreigners); this wording is the compulsory area covering the employer's additional liability (consolation payment, repatriation cost) on a foreign worker's death/disability. The two areas are separate and usually held together.
E-9 (non-professional employment) and H-2 (visiting employment) visa foreign workers who entered via the Employment Permit System are the core of the compulsory area. Permanent-residence/overseas-Korean visa holders (F-2, F-4, F-5) are the ordinary workers'-accident area (additional liability beyond industrial accident), distinct from the Foreign Worker Employment Act compulsory area.
Consolation-payment compensation for a foreign worker's occupational death/disability, body/remains repatriation cost, and incidental repatriation costs are usually the cover area. The compulsory limit is set by statute (MOEL notice criteria) and triggers automatically within it.
On death, the body/remains repatriation cost, and on disability the incidental cost of returning home (airfare, companion cost), are within the wording's cover area. As repatriation cost differs greatly by home country, check the actual cost is met within the wording limit.
On a foreign worker's accident, the language barrier for the worker/bereaved is a key cause of process delay. The employer bears process-support duties — multilingual guidance, interpretation support, home-country family contact — so preparing a foreign-worker accident-response system in advance is favourable for both underwriting and the post-accident process.
The insurer assesses it on the number of foreign workers employed, the sector (construction, manufacturing, agriculture/livestock, service), work-risk grade, the site safety-management system and past accident history. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
