Insurance companies are planning to raise car insurance premiums starting next year, citing their high loss ratios.

Industry sources say most insurers are also looking to tighten policies, requiring drivers to be accident-free for at least 11 years before becoming eligible for discounts.

Under the current policy drivers with no accident records for 10 years or more can get up to a 60 percent discount on their insurance fees.

Liability insurance companies reported a combined operating deficit of W272 billion (US$1=W1,157) during the first half of this year, a huge jump from the full-year deficit of W215 billion in 2009.