Rental Vehicle Insurance & Damage Policy

4.1 Mandatory Third Party Liability Insurance (TPI)

Each rental vehicle is covered by mandatory Third Party Liability Insurance maintained by the Vehicle Owner in accordance with Korean law. This insurance responds directly to:

• • Bodily injury or death of third parties
• • Damage to third-party property
• • Bodily injury or death of the driver

Insurance coverage limits are fixed by law and do not vary based on any optional products selected by the renter.

For customer reference, statutory coverage limits established in Korean Won (KRW) are presented in approximate USD equivalents below. Actual claim settlements are governed by applicable law and insurance policy terms.

4.2 Customer Financial Responsibility for Third-Party Claims

Mandatory Third Party Liability Insurance is designed to protect third parties and responds directly to covered claims.

Under applicable law and standard rental practice, rental agreements may require the renter, as the individual in control of the vehicle at the time of the incident, to bear specific, predefined financial responsibility amounts in connection with third-party claims.

This customer financial responsibility:

• • Is not an insurance deductible
• • Does not reduce or limit insurance coverage
• • Does not affect payments made to third parties
• • Exists solely as a contractual obligation between the renter and the rental service provider

These amounts apply unless relieved through the Optional Third Party Liability Responsibility Add-on described in Section 4.3.

4.3 Optional Third Party Liability Responsibility Add-on ("TPI Add-on")

Orcar may offer an optional Third Party Liability Responsibility Add-on ("TPI Add-on") for an additional daily fee.

When the TPI Add-on is purchased, Orcar or the applicable licensed rental partner fully relieves the renter of the financial responsibilities specified in Section 4.4 for third-party bodily injury or property damage claims that are covered by mandatory Third Party Liability Insurance, to the extent permitted by applicable law.

Important Clarifications

The TPI Add-on:

• • Does not increase or modify insurance coverage limits
• • Does not constitute insurance
• • Does not replace mandatory Third Party Liability Insurance
• • Only affects who bears financial responsibility, not how claims are processed or paid

4.4 Third Party Liability Insurance (TPI) — Coverage & Responsibility Table

Insurance responds first in all cases. The TPI Add-on is automatically included at no additional charge when All-Inclusive CDW is purchased. Basic CDW and Premium CDW do not include the TPI Add-on. Amounts shown represent the maximum customer financial responsibility that may apply if the TPI Add-on is not purchased.

For reference purposes, statutory insurance coverage limits established in Korean Won (KRW) are presented in approximate USD equivalents. Actual claim settlements are governed by applicable law and insurance policy terms.

Important Note on Occupant / Personal Injury Coverage

Occupant / Personal Injury coverage relates to injury to the renter or authorized occupants of the rental vehicle.

Unless the TPI Add-on is purchased:

• • The renter is responsible for the specified amount shown above
• • This amount may be payable before any applicable personal injury insurance benefits apply

This coverage does not apply to third parties outside the rental vehicle.

4.5 No Impact on Collision Damage Waiver (CDW)

Third Party Liability Insurance and the TPI Add-on apply only to third-party bodily injury and property damage. They do not affect:

• • Coverage for damage to the rental vehicle
• • Collision Damage Waiver (CDW) terms, limits, or exclusions

CDW is addressed separately in Section 5.

5.2 Issuing Entity and Regulatory Compliance

The CDW offered through Orcar is:

• • Issued by Major Rent-A-Car Co., Ltd., a licensed Korean car rental company
• • Filed with the Jeju Provincial Government
• • Compliant with applicable Korean regulations governing rental vehicle damage waivers.

OrcarStudio facilitates access to CDW but does not issue CDW and does not act as an insurer.

5.3 CDW Coverage Tiers

CDW may be offered in multiple tiers. The applicable tier, pricing, and conditions are confirmed at the time of booking. Each tier determines:

• • The renter's maximum financial responsibility for vehicle damage
• • Which vehicle-related costs are waived

5.4 Fixed Charges Applicable When CDW Does Not Waive Certain Costs

Where applicable under the selected CDW tier, the following fixed charges apply in the event of vehicle damage:

Loss of Use (Vehicle Downtime)

If loss of use is charged, the renter shall pay a fixed daily loss-of-use fee representing the period during which the vehicle is unavailable for rental due to damage.

• • Loss-of-use fee: USD 80 per day
• • Maximum charge: Up to 15 days (USD 1,250)

Application by CDW tier:

• • No CDW: 100% applies
• • Basic CDW: 50% applies
• • Premium CDW / All-Inclusive CDW: Waived

Loss-of-use charges apply regardless of whether the vehicle is repaired immediately, provided the damage results in rental downtime as determined by the rental partner.

Administrative / Handling Fees

If administrative or handling fees are charged, the renter shall pay a fixed administrative processing fee to cover damage assessment, documentation, coordination with repair facilities, insurers, and authorities.

• • Administrative / handling fee: USD 250 per incident
• • This fee applies once per incident and is non-refundable.

Application by CDW tier:

• • No CDW: 100% applies
• • Basic CDW: 50% applies (USD 125)
• • Premium CDW / All-Inclusive CDW: Waived

These charges are fixed, predefined amounts and do not vary based on the extent of damage, repair cost, or dispute outcome.

5.5 CDW Coverage Table (Vehicle Damage Only)

5.6 Explanation of CDW Tiers

• • No CDW: The renter bears full financial responsibility for vehicle damage, including repair costs, loss of use, and administrative fees.
• • Basic CDW: The renter remains responsible for repair costs but loss of use and administrative fees are discounted.
• • Premium CDW: The renter's financial responsibility for vehicle damage is capped at the specified amount.
• • All-Inclusive CDW: The renter has no financial responsibility for covered vehicle damage, subject to exclusions.

5.7 Relationship to Other Coverages

CDW:

• • Does not replace or modify Third Party Liability Insurance
• • Does not affect customer financial responsibility under Section 4
• • Applies only to damage to the rental vehicle, as described above

5.8 Continuity of Coverage and All-Inclusive Two-Incident Limit

Collision Damage Waiver (CDW) and applicable vehicle damage and liability protections described in this Policy remain in effect for the full rental period, subject to the All-Inclusive two-incident limit below, even if an accident, damage, or insurance claim occurs, provided that:

• • The renter complies with this Policy and the rental agreement; and
• • The incident does not result from conduct that voids coverage under Section 6.

A single incident or claim does not automatically terminate CDW or insurance coverage.

All-Inclusive CDW protection and assistance apply to at most two covered incidents in total during one rental period. Traffic accidents and simple mechanical breakdowns for which All-Inclusive protection or assistance is provided share this count. The first covered incident does not end All-Inclusive protection, and the second may still be handled under the package, but after the second covered incident no further All-Inclusive protection or assistance applies for the remainder of that rental period. This limit does not displace any mandatory statutory insurance that must respond under applicable law.

5.9 Administrative Fees for Additional Investigation Requests

If, following a determination under Section 5.10, the renter requests or initiates any additional investigation, review, clarification, or documentation beyond the records and findings already relied upon, the renter agrees that:

• • An administrative investigation fee shall be charged to the renter; and
• • Such fee is intended to cover internal handling, coordination with authorities, insurers, vehicle owners, and documentation processing.

The amount of the administrative investigation fee:

• • Will be disclosed separately or listed in the rental agreement or fee schedule, and
• • Is non-refundable and non-negotiable, regardless of the outcome of the additional investigation.

The renter acknowledges and agrees that:

• • Requests for further investigation do not suspend, delay, or reverse any coverage termination or financial responsibility determination; and
• • Administrative fees apply even if the determination remains unchanged.

6.2 Prohibited Conduct

All protections, waivers, and financial responsibility relief under this Policy shall be void, and the renter shall bear full financial responsibility to the maximum extent permitted by law, if any damage, loss, incident, or claim results from or is attributable to:

• • Driving under the influence of alcohol, drugs, or other intoxicating substances;
• • Operation of the vehicle by any person other than an Authorized Driver;
• • Violation of applicable traffic laws, regulations, or rental agreement terms;
• • Off-road use or operation in prohibited or restricted areas;
• • Racing, speed testing, towing, or any commercial or non-permitted use;
• • Intentional, reckless, willful, or grossly negligent acts or omissions; or
• • Failure to promptly report an incident, damage, or loss, or failure to reasonably cooperate with investigations, insurers, authorities, or the rental partner.

6.3 Effect of Prohibited Conduct

Where prohibited conduct under this Section applies:

• • CDW protections are void and do not limit the renter's responsibility for vehicle damage;
• • Any relief or limitation of financial responsibility provided through the TPI Add-on shall not apply; and
• • The renter remains contractually responsible for all amounts recoverable or chargeable under the rental agreement and this Policy, to the extent permitted by law.

Mandatory Third Party Liability Insurance maintained by the Vehicle Owner may still respond directly to third-party claims as required by law, but this does not relieve the renter of contractual reimbursement or recovery obligations.

6.4 Coverage Determination and Termination

Whether any damage, loss, incident, or claim results from conduct that voids protections or financial responsibility relief under this Section shall be determined based on objective records and official findings, which may include, without limitation:

• • Police reports or citations
• • Insurance company claim assessments
• • Official accident reports or third-party documentation
• • Vehicle data, photographs, or other contemporaneous evidence

The applicable licensed rental partner may rely on such records and evidence to make a determination regarding the applicability, limitation, or termination of protections or financial responsibility relief under this Policy.

The renter acknowledges and agrees that:

• • Determinations made in reliance on the records described above are presumed accurate and valid; and
• • The rental partner's determination shall be final, binding, and conclusive for purposes of this rental, except in cases of manifest error or fraud demonstrated by clear and objective evidence.

The renter waives any objection, dispute, or challenge based solely on:

• • Disagreement with the interpretation of the facts;
• • Alternative explanations not supported by official records; or
• • Personal statements inconsistent with documented findings.

If prohibited conduct under this Section is determined to have occurred:

• • Any applicable Collision Damage Waiver (CDW) protections; and
• • Any contractual waiver, limitation, or relief of the renter's financial responsibility relating to Third Party Liability Insurance, including the TPI Add-on,

are deemed void from the time of the prohibited conduct and cannot be reinstated for the remainder of the rental period, to the maximum extent permitted by law.