Receiving damages under the Civil Act and extinguishing claims for industrial accident insurance benefits.

Since insurance benefits under the Industrial Accident Compensation Insurance Act are of the nature that the State directly compensates an employee for any loss caused by an occupational accident of the worker who is liable to compensate in the workplace of the insurer, in case where the beneficiary receives damages under the Civil Act from the employer for the same reason as the occupational accident which causes the insurance benefits, the claim for benefits under the Labor Standards Act shall also be deemed extinguished. However, as in the instant case, in case where the beneficiary agrees to receive the amount less than the winning amount due to the damages during the course of the lawsuit between the employer and the employee, instead of receiving the amount of disability benefits directly from the employee under the industrial accident decision, the beneficiary shall be in a position to exercise the claim for damages under the Labor Standards Act, and therefore

Article 11 of the Industrial Accident Compensation Insurance Act, Articles 80 and 87 of the Labor Standards Act

Plaintiff

Head of the Office of Labor

Seoul High Court Decision 82Gu828 delivered on March 31, 1983

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the Defendant’s grounds of appeal.

Insurance benefits under the Industrial Accident Compensation Insurance Act are directly compensated by the State from the standpoint of the insurer for losses caused by an occupational accident of workers who are liable to compensate under the Labor Standards Act. Therefore, in light of the nature of the right to claim insurance benefits, where the right to claim insurance benefits under the Labor Standards Act is extinguished by receiving damages from the employer for the same reason as that of the occupational accident which caused the insurance benefits, the right to claim insurance benefits should also be deemed extinguished. However, as long as the beneficiary is in a position to exercise the right to claim accident compensation under the Labor Standards Act against the employer, the above right to claim insurance benefits for

In this case, according to the facts established by the court below, the plaintiff filed a lawsuit claiming compensation against the non-party coal Corporation (the employer) for damages caused by tort against the non-party coal Corporation, and received some winning judgment 21,649,966 won as property and mental damage, and the non-party Corporation (the plaintiff), instead of receiving only 18,800,000 won as property and mental damage from the same non-party Corporation, agreed that the plaintiff would directly receive disability benefits from the defendant in accordance with the industrial accident compensation decision. Thus, it is evident that the plaintiff's compensation amounting to 18,80,000 won as the plaintiff paid from the non-party coal Corporation (the employer) is other than the compensation amount equivalent to the compensation amount for disability under the Labor Standards Act. Accordingly, it cannot be viewed that the plaintiff's claim for compensation under the Industrial Accident Compensation Insurance Act cannot be extinguished since it received 18,800,000 won from the employer under such agreement. This is still possible for the plaintiff to exercise it against the employer.

Therefore, for the same reason, the Plaintiff received 18,800,000 won agreed upon from the employer, and thus, the judgment of the court below which held that the Defendant’s disposition rejecting the payment of insurance benefits under the Industrial Accident Compensation Insurance Act was unlawful on the ground that the claim for insurance benefits under the Industrial Accident Compensation Insurance Act was extinguished, is just and there is no error of law by misapprehending the Labor Standards Act or the legal principles

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Yoon Il-young (Presiding Justice)