How does social insurance within North Korea's insurance system cover illness, accidents and maternity?

Social insurance provides defined support for illness, workplace accidents, maternity, childbirth and temporary loss of work. Regular temporary support is generally 30% to 50% of living expenses, 50% for a workplace accident or work-related illness, and 100% for certain privileged groups.

Which organizations provide contract-based insurance in North Korea?

Approved insurance companies provide contract-based insurance under the supervision of the 중앙보험지도기관. KNIC, also known as Korean National Insurance Company or Korea Foreign Insurance Company, is a documented state insurance institution based in Pyongyang.

What happens when a contract-based insurance premium is paid late in North Korea?

Coverage can be suspended when an installment is late. It may be restored after the arrears and related late costs are paid.

How do United Nations sanctions affect insurance involving North Korea?

United Nations sanctions restrict public and private support for DPRK trade, including export credits, guarantees and insurance, and designate KNIC as a DPRK financial or insurance entity. Narrow exceptions exist for diplomatic or consular operations and UN-coordinated humanitarian assistance.

Insurance in North Korea

Q: How can a person apply for social security benefits in North Korea?

The relevant institution, company, organization or agricultural body submits the application to the 중앙로동행정지도기관, the relevant People's Committee or an agricultural body. A decision should be made within a maximum of seven days, followed by registration and issuance of a social-benefit certificate if approved.

North Korea has formal social insurance, social security and contract-based insurance systems. Social insurance covers defined events such as illness, workplace accidents, maternity and temporary loss of work, while social security addresses old age, permanent work loss, disability and lack of support. Contract-based insurance covers personal and property risks through approved insurance companies, but household access, premiums and claims practice are not transparently documented.

Tip

Treat North Korea's insurance system as two separate choices: state support handled through an affiliated institution or a written contract with an approved insurer. For household contract insurance, do not assume that a formal product guarantees transparent pricing, dependable claims handling or easy access. Keep written proof of contributions, policy terms, payments and claims, and assess every cross-border arrangement separately because sanctions can restrict insurance and reinsurance.

byOk&Yong

North Korea's Insurance Law was adopted in 1995 and amended in 1999, 2002, 2005, 2008 and 2015. The Social Insurance and Social Security Law was adopted in 2021. The Insurance Law governs contract-based insurance and does not govern state social insurance. Social insurance applies nationwide to institutions, companies, organizations and citizens, except for children's and childcare institutions. The state budget and institutional or company funds provide its main financing. Employees and workers contribute 1% of monthly wages. Farmers contribute 1% at the final distribution of agricultural output. Payments are made monthly or at the final distribution, depending on the contributor. Late payment carries a surcharge of 1% per day. Social insurance benefits include temporary support, maternity and post-birth support, funeral support and rest or recuperation benefits. A regular temporary allowance is generally 30% to 50% of living expenses. The rate is 50% for a workplace accident or illness arising from work and 100% for certain privileged groups. Temporary support normally lasts for a maximum of six months within twelve months. An extension of up to six additional months requires approval. Medical certificates, recuperation or rest authorization and other confirmations support the claim; missing evidence can prevent payment. Social security covers old age, permanent loss of work capacity, disability and lack of necessary support. The related institution, company or organization submits an application to the 중앙로동행정지도기관, the relevant People's Committee or an agricultural body. A decision should be made within a maximum of seven days. Approved applicants receive registration and a social-benefit certificate. Provincial, directly governed city and local People's Committees implement the system regionally. No separate special rule for another administrative level is documented. Contract-based insurance is provided by an insurance company approved by the 중앙보험지도기관, the central insurance guidance authority. The system includes personal and property insurance and can be voluntary or compulsory. The Cabinet may introduce new insurance types or compulsory objects. The legal framework provides for contracts involving institutions, companies, organizations, citizens, foreign institutions, foreign-invested enterprises, foreigners and overseas Koreans. Listed local insurance types include life insurance, accident insurance, child insurance, passenger insurance, fire insurance, marine insurance, agricultural insurance, technical insurance, motor insurance, credit insurance, liability insurance, guarantee insurance and reinsurance. The 중앙보험지도기관 approves insurance companies, products, tariffs, policies, reinsurance arrangements and agents or brokers. KNIC, also called Korean National Insurance Company or Korea Foreign Insurance Company, is a documented state insurance institution based in Pyongyang. A policyholder submits a written application and truthful risk information. The contract must be written. Acceptance and issuance of the insurance policy complete the contract. The policy identifies the parties, insured subject, value, insured amount, covered and excluded risks, term, premium, payment method and benefit procedure. Coverage takes effect after the premium is paid. If an installment is late, coverage can be suspended and may be restored after payment of the arrears and related late costs. The policyholder pays premiums, reports damage without delay and takes reasonable steps to reduce the loss. A personal-injury claim requires a benefit application and proof of death or incapacity. A property claim may require repair, replacement or restoration evidence. Liability insurance generally pays the injured third party directly and can include arbitration or court costs. The parties may change the contract by agreement within one month. Before an insured event, they may also end the contract fully or partly by agreement, with a proportional premium refund. A property policyholder must report a material change in risk; the insurer may adjust the tariff or terminate the contract. A property contract renews automatically for one year unless notice is given at least three months before expiry. An insurance company requires approval within a maximum of 60 days for establishment, followed by business and tax registration periods of 30 and 20 days respectively. It must maintain minimum financial capacity and insurance reserves and submit annual documents within three months. Publicly reliable standard household tariffs and premium schedules are not available. Contract-based insurance therefore appears most relevant in institutions, companies, transport, agriculture, foreign trade and special economic zones. Formal private, personal and property insurance exists, but reliable evidence about household accessibility, premium levels, claim rates and local branch practice is limited. A transparent, plural private insurance market comparable to systems in many other countries has not been established by the available evidence. International restrictions further affect the system. United Nations sanctions designate KNIC as a DPRK financial or insurance entity. Member States may not provide public or private support, including export credits, guarantees or insurance for trade with the DPRK, subject to narrow exceptions for diplomatic or consular operations and UN-coordinated humanitarian assistance. International reinsurance and cross-border claims handling are therefore strongly constrained.