We are experiencing a new era in which we are able to get in the autonomous vehicles (hereinafter AVs) without operating handle and break system in real life. It means that the rate of the car accidents would be reduced to approximately 10%. However, there is not sufficient legal compensation scheme concerning the responsibilities for the damages when they are caused by AVs. According to the categories of AVs based on SAE J3016, there are 6 levels from 0 to 5. Moreover, there are still complicated legal issues related to who is responsible for the damages which are especially subject to level 4 or 5 and how to reasonably compensate for it.

There are 3 types of solutions suggested under the South Korean legal system. The first one is to apply the Guarantee of Automobile Accident Compensation Act (hereinafter GAACA). In this theory, the responsibility of the driver is emphasized, however, the theory has internal limitations that the driver in AV has no power and authority to wheel but he/she has to take all responsibility for damages regardless of his/her negligence or reckless. The second one is to apply Product Liability Act and focus on the liability of the manufacturer. However, this one has also realistic disadvantages that undue responsibility of manufacturers get the development of AVs’ technologies slower and the victim can not easily prove the defections of AVs even though there are some presumptions and conversion of burden of proof because AVs’ technology is too complicated for general knowledge.

Therefore, I would like to introduce and underline the third theory that the compensation of damage caused by AVs is applied on No Fault Insurance. In fact, No Fault Insurance was not accepted several decades ago in Korea because on the contrary to the opinion of the supporters, it could not make the premium lower and it is difficult for the public understand why the victim is responsible for his/her own damage regardless of his/her negligence or recklessness. However, in the car accident relevant to AVs, there is no drawback addressed above anymore because it is impossible to make insurance deceit and there is no possibility that the car accident is caused by driver’s negligence. Especially, compensation fund for victim could be very useful and effective scheme to solve the problem of compensation and responsibility of damage including contributory negligence.

In sum, it is time to prepare the well-framed new legal system or theory to solve the problems concerning the compensation for damages and responsibility related to car accidents caused by AVs which is subject to level 4 and 5.