The purpose of these Terms and Conditions is to set forth the terms, obligations, and responsibilities of SOCAR Co., Ltd. and the car rental company (hereinafter referred to as the “Company”) and the lessee (hereinafter referred to as the “Member”), and any other necessary matters in concluding an agreement (hereinafter referred to as the “Indemnification Agreement”) between the Company and the Member to minimize any unexpected financial damages to the Member caused by the occurrence of an accident by using the SOCAR Automobile Damage Waiver System.
Article 1 Definitions
① "SOCAR Automobile Damage Waiver System" (hereinafter referred to as the “Automobile Damage Waiver System”) means a service that the Member signs up for when booking a rental car (hereinafter referred to as the “Automobile”) provided by the Company and compensate for any damage arising from collision or contact with other automobiles or objects in an accident that occurs to the automobile driven by the Member.
② "SOCAR Automobile Damage Waiver Product" (hereinafter referred to as the “Automobile Damage Waiver Product”) means a product that provides the maximum amount of money (hereinafter referred to as the “Deductible”) that the Member has to pay for the repair of an automobile, driven by the Member, due to an accident while driving, depending on the automobile class.
③ The "Waiver Insurance Premium" means the service fee charged under the selected Automobile Damage Waiver Product.
④ Terms not defined in this Article shall have the meaning ascribed to them in accordance with common trade practices.
Article 2 Execution of the Agreement
① Under the Automobile Damage Waiver System, the Indemnification Agreement shall be deemed to be have been executed when a rental contract (hereinafter referred to as the “Reservation”) is signed through the automobile rental reservation platform provided by the Company or its affiliates, the Automobile Damage Waiver Product is selected, and the Waiver Insurance Premium is paid.
② The indemnification period shall be the same as the reservation period and shall not be arbitrarily changed; provided, however, that the indemnification period may be extended for reservation times that have been adjusted in advance in consultation with the Company.
Article 3 Termination and Cancellation of the Agreement
① In the case of cancellation or termination of the Reservation, the Indemnification Agreement shall be deemed to have been terminated on the same day; provided, however, that the Automobile Damage Waiver System shall not be cancelled or terminated independently of the booking.
② In the case of cancellation or termination of the Reservation due to the Member’s personal reasons, a cancellation fee may be charged, and in this case such criteria as in Article 7 Change or Cancellation of Automobile Reservation of the SOCAR Automobile Rental Terms and Conditions shall apply.
Article 4 Coverage and Processing
① Only an accident caused by collision or contact with other automobiles (or objects) during the operation of the automobile reserved by the Member shall be covered under the Automobile Damage Waiver System, and any other accidents happened outside the reservation period shall not be covered.
② The Automobile Damage Waiver System covers the cost of repairing the vehicle involved in an accident and the compensation fee for operating loss arising from suspending the operation of the vehicle, but not the cost of roadside assistance, towing, rescue, etc.; provided, however, that in the case of a product with no deductible, the cost of repairing the automobile involved in an accident, the compensation fee for operating loss arising from suspending the operation of the vehicle, and towing/rescue services from the Company’s partner company shall be covered.
③ In the event of an accident, the Member shall compensate the Company for the cost of handling the automobile accident per accident up to the deductible of the Automobile Damage Waiver Product he/she subscribed to; provided, however, that if the actual expenses incurred are less than the deductible, such actual expenses shall be the cap.
④ If any damage is caused by the act under the prohibited provisions of Article 5, there is no guarantee with respect to coverage and the amount of damages and penalties may be imposed.
Article 5 Coverage Limitations for the Automobile Damage Waiver System
① The Member who causes an accident by engaging in any of the following acts may be limited in the coverage of the Automobile Damage Waiver System depending on his/her degree of liability:
1. Traffic violation: In case the Member drives in violation of a signal displayed by a traffic signal or a police officer directing traffic, or in violation of a direction displayed by a safety sign indicating a traffic closure or a stop sign
2. Centerline crossing: In case the Member crosses the centerline, or crosses, makes a U-turn, or goes backward in a place where such actions are restricted, such as a highway
3. Speeding: In case an accident is caused by his/her driving in the speed of 40 kilometers per hour over the speed limit or failing to slow down a certain percentage from the regulated speed for the road, depending on weather or road conditions
4. Violation of the duty to protect pedestrians: In the case of hitting a pedestrian in a signalized or unsignalized crosswalk (including pedestrians pulling a bicycle or two-wheeler)
5. Unlicensed driving: In the case of driving without a properly obtained driver’s license. This shall be deemed to be invalid if the Member’s driver’s license is suspended or he/she is prohibited from driving.
6. Driving under the influence of alcohol or drugs: In the case of driving while intoxicated or under the influence of drugs that may impair your ability to drive normally
7. Injury to a child in a school zone: In the case of breaching the duty to drive with due care for the safety of children in a school zone, causing bodily injury to a child
② Accidents caused by a driver driving alone without the Member accompanied
③ Damage and accidents caused by arbitrary disassembly, modification, damage, vandalism, and self-repair of the automobile without permission from the Company
④ Failure to report an accident or damage to the automobile immediately or during the applicable reservation period without good cause, or intentionally concealing, fleeing, or leaving the scene
⑤ Damage caused by theft, damage, collision, crash, fall, rollover, or flooding caused by the Member’s obvious intentional, negligent, careless, or illegal acts, knowing that certain consequences (such as accidents) will occur.
⑥ Changing the actual automobile driven or the other damaged automobile, or falsely reporting an accident
⑦ An act of causing an accident and demanding compensation therefor by colluding with the counterpart (collusion between the perpetrator and the victim)
⑧ Inserting fictitious damage unrelated to the accident to demand compensation
⑨ Inflicting serious damage to the inside or outside of the automobile by injecting mixed or defective fuel, etc.
Article 6 Interpretation
① The Company may have separate terms and conditions (hereinafter referred to as the “Individual Terms”) and policies (hereinafter referred to as the “Individual Policies”) for individual services, and in the event any terms in the Individual Terms or the Individual Policies conflict with these Terms and Conditions, the Individual Terms and Individual Policies shall prevail.
② For the matters not specified in these Terms and Conditions, the Regulation of Standardized Contracts Act, the Framework Act on Electronic Documents and Electronic Transactions, the Digital Signature Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., the Act on the Consumer Protection in the Electronic Commerce Transactions, etc., and any other relevant laws and regulations, or common trade practices shall apply.
Article 7 Governing Law and Jurisdiction
① Any litigation between the Company and the Member shall be governed by the laws of the Republic of Korea.
② In the event of a dispute between the Company and the Member, the court having jurisdiction over the Member’s address shall be the competent court, and in case the Member’s address or residence is not clear, the competent court shall be determined in accordance with the Civil Procedure Act; provided, however, that if a debt is incurred due to a reason for which the Member is responsible, the Seoul Central District Court, where the company in charge of the management business is located, shall be the competent court.
Addendum
These Terms and Conditions shall take effect as of May 23, 2024.