Seoul: The ruling Democratic Party (DP) and the government have reached an agreement to unveil a plan next week aimed at lowering car insurance premiums. This decision follows the implementation of an odd-even rule for public vehicles, designed to manage the increasing demand resulting from rising oil prices due to the ongoing conflict in the Middle East.
According to Yonhap News Agency, the DP's special committee on the Middle East crisis initiated this proposal as the government imposed restrictions on the use of passenger cars by public institutions. "The Financial Services Commission and insurance authorities are closely discussing measures to reduce premium rates and plan to announce them as early as next week," shared DP lawmaker Ahn Do-geol with reporters.
The government had initially introduced a five-day vehicle rotation system for the public sector starting March 25, which reportedly saved 6,900 barrels of oil monthly. Following the introduction of the odd-even system on April 8, monthly energy savings are projected to range from 17,000 to 87,000 barrels, as stated by Ahn.