In case where an accident occurred while driving another motor vehicle within the insurance period after the insured who entered into another motor vehicle insurance contract subject to the "Special Terms and Conditions for Motor Vehicle Driving Security" has transferred the insured motor vehicle, whether the insurance company is liable to pay the insurance money in accordance with the above Special Terms and Conditions (affirmative)

In the event that an insured person who entered into another automobile insurance contract subject to the "Special Terms and Conditions for Motor Vehicle Operation Security" transfers an insured motor vehicle, the insured person would lose operating profit and control of operation of the insured motor vehicle and thus would be entitled to protection under the insurance contract in respect of operation of the insured motor vehicle. However, the transfer of the insured motor vehicle cannot be deemed as being automatically suspended or invalidated, and the risks secured under the special terms and conditions do not require the operation of the already transferred insured motor vehicle, and the risks secured under the special terms and conditions are not premised on the operation of the insured motor vehicle, and there are still benefits to be protected under the insurance contract in respect of its operation as the insured motor vehicle. Therefore, the insurance company is obligated to pay the insurance proceeds in accordance with the special terms and conditions even if the insured motor vehicle was involved in the accident while driving the "other motor vehicle stipulated under

Article 105 of the Civil Act, Articles 726-2 and 726-4 of the Commercial Act

Dongbu Fire Marine Insurance Co., Ltd. (Attorney Gyeong-soo et al., Counsel for the plaintiff-appellant)

Yoon-in (Attorney Shin Ho-ho et al., Counsel for the defendant-appellant)

Incheon District Court Decision 97Na6797 delivered on June 18, 1998

The appeal is dismissed. The costs of appeal are assessed against the plaintiff.

We examine the grounds of appeal.

According to the judgment of the court of first instance cited by the decision of the court below, in the case where the insured transfers an insured automobile during the insurance period, the rights and obligations of the policyholder and the insured arising from the insurance contract shall not be succeeded to the assignee, and the policyholder shall notify the insurance company in writing to the effect that the rights and obligations arising from the insurance contract will be transferred to the assignee of the insured automobile, and shall apply the insurance contract to the assignee at the time the insurance company approves it (Article 59(1)), and the insurance company shall not pay the insurance money for any accident that occurred after the insured automobile has been transferred (Article 59(2)). Meanwhile, in the case where the insured automobile insurance among the personal automobile insurance, the "other special provisions on driving security automatically applicable to the case of an insured automobile" (hereinafter referred to as the "special provisions on automobiles"), the insurance company shall regard the "other automobile driven by the insured" as the ordinary automobile and shall provide for the approval of the replacement or replacement of the insured's spouse as the insurer's liability for damages, and the term "other automobile or substitute one's spouse" as the substitute automobile.

Therefore, if an insured person who entered into an insurance contract subject to the special terms and conditions transfers an insured automobile, the insured person would lose profits from operation and control of the insured automobile and thus lose profits from the operation of the insured automobile. However, the transfer of the insured automobile cannot be deemed to be automatically suspended or invalidated. The risks secured by the special terms and conditions are not premised on the operation of the insured automobile which was already transferred, and the risks secured by the special terms and conditions are not only on the premise of the operation of the insured automobile, but also benefits to be protected by the insurance contract as to its operation. Therefore, even if an insured person entered into an insured automobile within the insurance period after transferring the insured automobile, the insurance company cannot be deemed to bear the obligation to pay insurance proceeds in accordance with the special terms and conditions.

In the same purport, the court below concluded an automobile insurance contract subject to special terms and conditions between the plaintiff and the non-party 1, the insured, and the non-party 1, the insurance period from October 12, 1996 to October 12, 1997, and transferred the insured automobile to the other party on December 20, 1996. On January 20, 197, the court below rejected the plaintiff's assertion that the plaintiff, the insurer of the automobile insurance contract of this case, did not have any obligation to pay insurance money and its special terms and conditions in accordance with Article 59 (2) of the Personal Insurance Contract, on the ground that the accident of this case occurred after the non-party 1 transferred the insured automobile. On January 20, 1997, the court below rejected the plaintiff's assertion that there was no obligation to pay insurance money and its special terms and conditions.

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 on the bench.

Justices Cho Chang-hun (Presiding Justice)