Traffic Accident Settlement Agreements: Why the Settlement Amount and Non-Punishment Statement Matter
1. Do You Always Need a Criminal Settlement with the Victim After a Traffic Accident?
Not every traffic accident requires a separate criminal settlement with the victim.
Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents provides that, in principle, a driver cannot be prosecuted against the victim's express wishes for causing injury through occupational negligence or gross negligence in a traffic accident.
Article 4 of the same Act also provides that, in principle, prosecution is barred where the vehicle is covered by qualifying insurance or a mutual aid program that meets certain requirements.
As a result, for an ordinary traffic accident, depending on the type of accident and whether comprehensive insurance applies, the criminal process may be resolved through insurance handling without a separate criminal settlement.
However, there is an important exception.
If the accident involved a serious violation specified in the proviso to Article 3(2) — such as running a red light or crossing the centerline — or falls under another statutory exception such as fleeing the scene without taking necessary measures, prosecution may proceed even if the victim does not wish to see the driver punished.
So before asking "do I need to settle with the victim?", a suspect should first check what type of case the investigation is treating this as.
2. Do You Still Need a Separate Settlement Even If Insurance Already Paid Compensation?
Because compensation through an insurer and settlement in a criminal case serve different purposes, having gone through insurance processing does not automatically mean a criminal settlement is unnecessary.
Auto insurance is primarily meant to compensate civil damages arising from the accident — medical expenses, lost income, and pain and suffering.
A criminal settlement, by contrast, is the process in which, while criminal proceedings are ongoing, the suspect pays a separate sum to help the victim recover from the harm and confirms whether the victim wishes to forgo punishment.
How Insurance Claims and a Criminal Settlement Differ
| Category | Auto Insurance Claim | Criminal Settlement |
| Main Purpose | Civil compensation for damages | Recovery from harm in the criminal case |
| Who Pays | Insurer / mutual aid association | The suspect or defendant |
| Main Content | Medical costs, lost income, pain and suffering, etc. | Settlement amount, non-punishment statement, etc. |
| Relationship to Criminal Proceedings | For certain accidents, having insurance itself relates to the special prosecution bar | May affect whether charges are filed or the sentence, depending on the type of accident |
| What to Check | Insurance coverage and scope of compensation | Scope of settlement, nature of the settlement amount, non-punishment statement |
In particular, Article 4 of the Act on Special Cases Concerning the Settlement of Traffic Accidents carves out an exception to the prosecution bar for insured vehicles where the accident falls under the proviso to Article 3(2), or where the victim suffers a life-threatening injury or an incurable or intractable disease.
So the mere fact that the insurer is already paying medical costs does not mean the response to the criminal case is complete.
The cause and extent of the accident, together with whether insurance applies, should be reviewed together to determine whether a separate criminal settlement is needed.
3. What Should You Check in a Traffic Accident Settlement Agreement?
For a traffic accident settlement agreement, what matters is not the template itself but making clear what accident the payment relates to, how much is being paid, and exactly what scope the parties have agreed on.
Some people simply search online for a settlement agreement template and use it as is, but because the reasons a criminal settlement is needed and the insurance situation differ from case to case, using identical wording across cases may not be appropriate.
First, the agreement should clearly identify which accident it concerns.
It should record the date, time, and location of the accident and the parties involved, and if the case has already been reported to the police, information that can identify the case should be organized as well.
Next, the settlement amount and the method of payment should be clearly specified.
If the amount has already been paid, records such as bank transfer history that confirm payment should be kept; if payment is scheduled for later, a specific payment deadline should be set.
Another important element is the character of the settlement amount.
The Supreme Court has taken the position that, absent special circumstances, where a victim in a criminal case receives a settlement amount from the offender and agrees not to seek punishment, that amount is treated as part of the compensation for the victim's property damage.
So if compensation through the insurer is proceeding separately, it is worth reviewing what purpose the criminal settlement amount serves and how the agreement addresses its relationship to civil compensation.
Finally, what matters most for a suspect is whether the victim's non-punishment intent is actually confirmed.
Simply stating that the parties "reached an amicable settlement" or that the victim "received the settlement amount" does not always make clear that the victim does not wish to see the suspect punished.
4. Why Do the Settlement Amount and the Non-Punishment Statement Matter?
In a criminal settlement, the fact that a settlement amount was paid and the victim's intent not to seek punishment are separate issues, so it is important to address both together.
The Settlement Amount Can Show Real Recovery from the Harm
There is no fixed statutory amount for a criminal settlement based on the type of accident.
The amount is negotiated between the parties based on individual circumstances, including the severity of the victim's injury, the length of treatment, how the accident occurred, and how much of the harm has already been recovered through insurance.
The Supreme Court Sentencing Commission's current sentencing guidelines for traffic offenses also treat "non-punishment intent or substantial recovery from the harm" as a major mitigating factor.
These guidelines were revised on March 30, 2026 and have been in effect since July 1, 2026.
So if there is a possibility of criminal punishment for a traffic accident, it is worth preparing not only proof that a settlement amount was paid but also evidence of how much of the harm has actually been recovered.
A Settlement Agreement and a Non-Punishment Statement Are Not the Same Document
A settlement agreement is the document in which the suspect and the victim confirm the settlement amount and the terms of settlement.
A non-punishment statement, on the other hand, is a separate document in which the victim clearly expresses that they do not wish to see the suspect punished — its purpose is different.
Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents is based on the victim's "express intent."
So the mere fact that the suspect transferred a settlement amount to the victim does not automatically establish that the victim does not wish to see the suspect punished.
If the settlement agreement itself clearly states that the victim does not wish to see the suspect punished, it cannot be said that a separate non-punishment statement is always required for that intent to be validly expressed.
Still, because it is important in criminal proceedings to clearly confirm the victim's intent, in practice it matters to record the terms of the settlement and the non-punishment intent through a reliable separate document, such as a non-punishment statement.
Timing Matters for the Non-Punishment Statement
In an offense where prosecution is barred if the victim objects, there is also a time limit on withdrawing the victim's wish for punishment.
Under Article 232(1) and (3) of the Criminal Procedure Act, in a case where prosecution cannot proceed against the victim's express wishes, withdrawing the wish for punishment is possible only before the first-instance judgment is rendered.
So in a case that has already gone from a police investigation to trial, rather than simply thinking "we can settle at some point," the current stage of the proceedings and the timing of any settlement should be considered together.
5. How Does the Effect of a Settlement Differ for the 12 Major Traffic Offenses or Cases Involving Serious Injury?
Whether a case involves one of the 12 major traffic offenses or an ordinary traffic accident with serious injury can change the legal significance of a victim's settlement and non-punishment intent.
First, if the accident falls under the proviso to Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents — such as running a red light, crossing the centerline, or violating a pedestrian's right of way at a crosswalk — the victim's wish not to see the driver punished does not have the effect of barring prosecution.
In other words, settling with the victim in a case involving one of the 12 major traffic offenses does not automatically end the investigation or trial.
That said, this does not mean a criminal settlement is meaningless.
Because the current sentencing guidelines for traffic offenses treat non-punishment intent or substantial recovery from the harm as a positive sentencing factor, recovery from the harm and whether a settlement was reached can still be considered in determining the sentence.
On the other hand, for an accident involving serious injury under Article 4(1)(2) of the Act, being covered by comprehensive insurance alone does not restrict prosecution.
However, if the accident does not fall under the proviso to Article 3(2), the victim's express non-punishment intent regarding occupational-negligence injury and similar charges may still be a separate issue, so it should not be assumed that a serious-injury case will always continue regardless of settlement.
Also, cases involving a fatality, fleeing the scene, drunk driving, or other charges under separate statutes may be governed by different rules.
So a suspect should check their case in this order: type of accident → applicable charges → whether insurance applies → extent of harm → the effect of settlement and non-punishment intent.
6. Frequently Asked Questions (FAQ)
Q1. Do I Still Need a Criminal Settlement If Comprehensive Insurance Is Already Covering All the Medical Costs?
It depends on the type of accident.
For an ordinary traffic accident, the special protection under comprehensive insurance may apply, but if the case falls under an exception such as one of the 12 major traffic offenses or a statutorily defined serious injury, having insurance alone may not resolve the criminal proceedings.
So you should first check what charge the police are investigating, not just whether insurance is being processed.
Q2. Do I Have to Pay Whatever Settlement Amount the Victim Demands?
You are not legally required to pay exactly the amount the victim proposes.
There is no fixed statutory amount for a criminal settlement in a traffic accident; the amount is negotiated between the parties based on the extent of the harm, the length of treatment, how the accident occurred, and how much has already been recovered through insurance.
That said, in a case with a real possibility of criminal punishment, it is worth considering not just how large or small the amount is, but what recovering the harm through settlement actually means for the case.
Q3. What Should I Do If the Victim Refuses to Settle?
A victim cannot be forced to settle.
If the victim does not respond to settlement, it is worth objectively organizing how much of the harm has been recovered through insurance and what efforts the suspect made toward a settlement.
Because the outcome of a criminal case is not determined by settlement alone, other sentencing factors — how the accident occurred, the degree of negligence, the extent of harm, and any criminal record — should be prepared as well.
7. Summary and Key Takeaways
Not every suspect in a traffic accident case needs a separate criminal settlement with the victim.
But if a criminal settlement is needed, it matters more to check that the character and scope of the settlement amount and the victim's non-punishment intent are clearly confirmed than simply to use a generic settlement agreement template.
In particular, in cases involving the 12 major traffic offenses, proceedings may continue even with a non-punishment statement, while in other types of traffic accidents the victim's express non-punishment intent can carry significant weight in whether charges are filed — so it is important to first identify which category the accident falls into.
Decent Law Firm reviews the dashcam footage, the circumstances of the accident, the victim's medical records, and the status of insurance processing to assess the applicable charges and the need for a criminal settlement from a professional perspective.
You can also work with attorneys experienced in numerous traffic accident settlements to review the settlement process, the settlement agreement and non-punishment statement, and the response needed at the police investigation and trial stages.
If you are facing a police investigation, or are already discussing settlement with the victim, it is best to first check what legal significance a settlement actually has in your case, rather than deciding on the settlement amount first.
