Lloyd’s of London and Korean Re have reached an agreement to pay more than 100 billion won (US$89 million) for South Korea’s Sewol ferry accident victims after two years of negotiating whether or not insurance claims were valid due to the ferry owner failing to operate according to regulations, the Investor reported.
304 passengers lost their lives when the ferry sank 25 kilometers from Jindo, South Jeolla Province, on the southwest coast in 2014.
Lloyd’s had acted as a reinsurer of policies worth 150 billion (US$130 million) won to Samsung Fire & Marine Insurance and Korean Re, firms which in turn reinsured the Korea Shipping Association – from which the ferry’s operator had bought insurance policies worth up to 350 million won per passenger, or a total of 150 billion won.
A Korean delegation of government and insurance firm’s representatives had visited the UK in April to complete negotiations.
Lloyd’s had at first argued that the ferry operator should be held accountable for the accident, because it failed to run the ferry according to proper regulations, however, the Investor said an industry source commented that Lloyd’s had agreed to pay the compensation “after gauging its relations with the Korean government and business ties here.”
