About Performance Insurance
Performance insurance covers the damages suffered by a public organization due to the purchase of a product with a performance certificate so that the avoidance of the use of the products developed by an SME among public organizations can be overcome and encourage the public sector to purchase such a product.
The definition of performance insurance
After a performance-certified product that is a new-technology product developed and manufactured by an SME is sold to a public organization, the performance insurance covers the damages suffered due to the degradation of the performance of such a product.
The products eligible for performance insurance
A new-technology product developed by an SME that has also been certified for its performance; intended to be sold to a public organization
Performance insurance operation
The type of insurance
Guarantee insurance (low premium)
The coverage
- Performance guarantee: the replacement or repair cost for the product
- If the price of the product is 30 million won, the premium is expected to be about 120,000 won.
- * Performance insurance premium = 30 million won (product price) x 0.4% (expected insurance premium rate)
Operating system
Insurance period
In principle, one year from the date of delivery. However, up to the negotiation by the public organization and the SME, a different insurance period can be set within the validity of performance certification (two years or three years)
Application for insurance subscription
The insurance policy is available from Seoul Guarantee Insurance, Machinery mutual aid, SW mutual aid, Samsung Fire Insurance, or KB insurance (see the current status performance insurance.)
Issuance of a performance insurance policy (issued upon signing of the contract)
If an SME participates in a public purchase tender process with a new-technology product that has a performance certificate, the insurance subscription (scheduled) certificate is issued before the signing of the contract.
The current status of the providers of performance insurance
Visit the website of the responsible department
Click the button below to jump to the main webpage of the responsible department, where you can find the contact information of the officers in charge.
