Park Ji-min, popularly known as Jimin, a member of the famous South Korean boy group BTS, recently had his house seized by authorities for not paying his Health Insurance premiums.
According to reports, South Korea’s National Health Insurance Service temporarily impounded Jimin’s $4.7 million Nine One Hannam house located in Seoul for failure to pay his dues.
However, a statement released by BTS’s record label, Big Hit entertainment, revealed that Jimin was not even aware of his overdue premiums!
As it happens, any mail sent to an artist’s residence is received by Big Hit first. The company then passes all relevant mail on to the artist. But, due to a processing error and Jimin’s extensive overseas travelling schedule, all 4 of his payment notices failed to be delivered to him.
Acknowledging the mistake, Big Hit admitted its error and apologised to Jimin and his fans for their negligence. As soon as Jimin was alerted of the situation, he paid the premiums in full and the seizure on his apartment was promptly lifted.
But, had matters gone a step further, could Jimin have sued Big Hit for damages?
K-pop stars have in the past filed lawsuits against their agencies for various reasons. And companies usually have a fail-safe way to hedge against such lawsuits claiming negligence– Directors and Officers Insurance!
D&O Insurance protects businesses against claims of negligence or misconduct made against their directors, chief officers, or managers.
Under the ‘Official Investigations and Enquiries’ add-on to this policy, if a senior manager or chief executive is found to be responsible for a negligent suit, coverage for any legal expenses or payable compensation to the claimant can be triggered.