What is commercial-vehicle idle compensation (business suspension loss)?
In Korea, a “idle-vehicle fee” (휴차료, hyucha-ryo) compensates the lost business income of a commercial vehicle — a taxi, cargo truck, bus, or rental car — that cannot operate while it is being repaired after an accident. The Korean auto-insurance standard policy recognizes the reasonable business loss of a for-hire vehicle that is out of service, paid from the at-fault party’s property-damage (대물) coverage.
This is different from the rental fee (대차료) or transport allowance paid for a private (non-business) car. A private car is compensated for the cost of renting a substitute vehicle; a commercial vehicle instead loses the actual income it was earning, so the loss is measured with a dedicated idle-fee standard. This calculator estimates both the policy-based idle fee and the full actual loss that may support an additional civil claim, following the 2026 Korean standard policy and Supreme Court precedent.
Two ways the idle fee is calculated
1. Documented method (proof available). If you can prove income with tax records, the fee is (daily operating income − daily operating cost) × idle days. Operating cost means the variable expenses incurred only while driving — fuel, tolls, maintenance, lubricants and other consumables, inspection fees, insurance, and value-added tax. Because these costs are not spent while the vehicle sits idle, only the net operating loss is recognized.
2. Schedule method (no proof). If income cannot be documented, the insurer applies the fixed daily amount from the Korea Insurance Development Institute’s idle-fee schedule for that vehicle class, multiplied by the idle period. If your real net loss is larger than the schedule amount, it is usually better to prove it with tax data (income certificate, VAT return) and claim under the documented method. The per-class schedule amounts in this tool are representative reference figures you can edit.
Recognized idle period
The idle fee is capped by the standard policy. Delays caused by unreasonable repair or parts back-order are excluded from the ordinary repair time.
- • Repairable: up to 30 days. The period runs from handing the vehicle to the repair shop until the repair is completed, limited to 30 days.
- • Total loss (scrapped): 10 days. When the vehicle cannot be repaired and must be scrapped, 10 days are recognized as the time needed to obtain a replacement vehicle.
- • Personal-taxi injury exception. If a licensed personal-taxi driver is injured and still cannot drive after the repair is finished, the non-operating period is recognized within 30 days from the accident date.
Policy idle fee vs. civil business-loss claim
Insurers pay the idle fee within the policy caps (30 days for repair, 10 days for total loss). However, the Korean Supreme Court treats the income a commercial vehicle would have earned during the necessary repair period as an ordinary damage that must be compensated. If your real loss exceeds the policy cap, the excess can be pursued as a civil damages claim.
- • Supreme Court 1997.4.25, 97Da8526: lost profit during the period needed to repair or replace a damaged commercial vehicle is an ordinary damage that must be compensated.
- • Supreme Court 2004.3.25, 2003Da20909, 20916: sets out the basis and time range for business suspension loss when a commercial asset is totally destroyed or damaged by a tort.
This calculator shows the “civil claim headroom” — the full actual loss over the whole idle period minus the capped policy fee. Because a civil claim requires proof of causation and loss, consult a professional when the amount is large.
Documents that support an idle-fee claim
- • Business registration and transport-business license (proves the vehicle is for-hire).
- • Income certificate and VAT return (support daily operating income).
- • Operation log, settlement records, and transaction statements (prove real income and idle period).
- • Repair statement and estimate (confirm the ordinary repair time / idle days).
- • Tax accountant’s confirmation when the net-loss calculation is complex.
Tax treatment
The idle fee is damages for loss, not consideration for supplying goods or services, so it generally falls outside the scope of value-added tax. Because it also compensates business income, income-tax handling can vary by case, so verify with a tax professional when the amount is significant. Note that when computing operating cost, VAT-inclusive expenses are reflected as a deduction.
Frequently asked questions
Q. How is the rental fee different from the idle fee?
The rental fee compensates a private car for renting a substitute during repair, while the idle fee compensates a commercial vehicle for the actual business income lost while it cannot operate.
Q. Can I claim without income proof?
Yes. Without documents the insurer applies the per-class schedule amount. If your real net income is higher, prove it with tax data and claim under the documented method.
Q. Does my fault ratio reduce the fee?
Yes. The idle fee is paid from the other party’s property-damage coverage, so you receive only the at-fault party’s share. If you are 100% at fault, there is no idle fee to claim.
This calculator is based on Korean auto-insurance standard-policy rules and Supreme Court precedent as of 2026, and is a reference estimate only. Daily income, operating-cost ratios, schedule amounts, and ordinary repair time vary by operator, vehicle class, and time, so confirm the actual payout with the at-fault insurer’s assessment and your tax and repair evidence. It has no legal or contractual effect.