North Korean authorities have been providing “home and family property insurance cards” to North Koreans and collecting insurance premiums from them since last February, Daily NK has learned.
The move comes after the authorities distributed “explanatory materials” and conducted “trainings” regarding a new insurance system back in January.
“In early February, the home and family property insurance cards, issued by the Korean National Insurance Corporation, were distributed in Musan County,” said a North Hamgyong Province-based source in a phone conversation with Daily NK on Mar. 5. “After handing out insurance cards, the authorities have been forcing all families to pay KPW 2,000 every month.”
A family and home property card that Daily NK obtained through the source was made of thick paper cut into a small card shape. The name of the head of household, address, insurance coverage period, coverage amount, and insurance premium was written on the front.
While the explanatory materials specified the maximum amount of compensation as KPW 1 million, the insurance coverage and premium sections on the card were left blank by the authorities. For this reason, some people have been saying that the authorities are “using tricks” to avoid paying out accurate amounts of compensation.
As they gave out cards, the authorities made residents write KPW 2,000 on the insurance premium section. A discrepancy between the insurance premium written on cards and information in materials that specify an annual subscription fee as KPW 4,000, once again, shows that there is a gap between law and the actual enforcement of law in North Korean society.
Additionally, the authorities also mentioned a monthly payment of KPW 2,000. That is, each family is to pay an annual fee of KPW 24,000 to the authorities instead of the KPW 4,000 as noted in the explanatory materials.
Considering the amount of coverage stated in the previously distributed materials (compensation up to KPW 1 million for an annual payment of KPW 4,000), the authorities can theoretically compensate people for up to KPW 6 million at the KPW 24,000 subscription fee.
Some North Koreans are reportedly saying, however, that the new insurance system is a government strategy that aims to steal from people’s pockets.
“People are asking how the state could compensate people with such a large amount of money amid the coronavirus pandemic and economic crisis,” the source said. “This is nothing more than a fraudulent attempt to rip people off while trying to prevent the state from defaulting.”
However, the North Korean authorities are maintaining that they will retain this insurance system. During the 13th Plenary Meeting of the 14th Supreme People’s Assembly Standing Committee held on Mar. 3, the authorities passed the social insurance and social protection law, which expressly mentions the guarantees and expenses of social insurance, as well as the organization, management, and mission of a social insurance agency.
The authorities included items covered by and excluded from insurance on the back of the card, along with guidelines for reporting and claiming damages:
- Items covered by insurance: electronic and electric appliances, furniture, beddings, musical instruments, kitchenware, grains, other family properties with over KPW 10,000 value.
- Items excluded from coverage: cash, precious metals, valuables, jewels, antiques, artworks, various kinds of photographs and books, photos, USBs, CDs and DVDs, animals and plants, egg-based products and winter clothing, shoes, plates, cups, toys, faucets, groceries, banned items, personal properties of others
- Reporting and claiming damages: an insurance subscriber should report the damage to the insurance department within 24 hours; (he or she) must immediately report to the department if (he or she) moves or changes an address
