China's insurance watchdog is calling on insurers to act according to their duties, and offer all due compensation to victims of the recent Wenchuan Quake.
China's insurance watchdog is calling on insurers to act according to their duties, and offer all due compensation to victims of the recent Wenchuan Quake.
Insurance companies are now conducting on the spot investigations of damage caused by the recent earthquake. Since the quake struck on May the 12th, insurers have received about 200 thousand claims for quake related damages. And so far, they have already disbursed more than 130 million yuan. The insurance watchdog has intervened by setting up a coordination group to oversee compensation.
Wu Dingfu, Chairman of China Insurance Regulatory Commission, said, "We ask insurers to pay without default and pretermission. On disputed claims, insurers should decide in favor of customers and beneficiaries. If relevant documents have been lost or damaged, insurers should still pay up if they offer some information. In cases of whole families perishing, insurers should make every effort to find any remaining members."
The insurance watchdog is instructing insurers to come up with half the payouts for those still missing, and top up what's owed if and when they receive official confirmation of death. The commission has also called for preferential payouts on claims which could help the quake-hit region resume production, in areas such agriculture.
2008 is fast becoming the most disastrous year yet for China's insurance industry. Companies have already paid more than 5 billion yuan to settle claims related to severe winter storms at the start of the year. And insurers are expecting payouts to hit a record high after the recent earthquake.
(CCTV May 30, 2008)