Chinese insurers are expected to pay 3.52 billion yuan ($489
million) in damages to companies and people in central and eastern
China as a result of the worst snowfall in almost half a century,
the nation's insurance regulator said on Friday.
"By Friday, insurance firms had paid 350 million yuan ($48.6
million), with most of this going to Hunan, Hubei, Guizhou, Jiangxi
and Anhui provinces and the Guangxi Zhuang autonomous region," said
Wu Dingfu, chairman of the China Insurance Regulatory
Commission.
Power firms, which are worst hit by the snowfall, are expected
to receive up to 1 billion yuan ($139 million), accounting for 30
percent of all claims.
"To make payments quicker and smoother, major insurers such as
PICC, China Life and Ping An, have all launched emergency plans and
are offering more flexible treatment," said Wu.
For instance, insurance companies are paying out to pig farmers
whose fertile sows have frozen to death, although they do not
normally compensate for such losses. The firms have also pledged to
pay out 1,000 yuan ($139) to farmers who have not paid the 12-yuan
($1.6) premium.
"We're offering on-the-spot payments for losses below 3,000 yuan
($417)," said Jiang Caishi, PICC business manager.
Insurance firms have launched round-the-clock phone services to
answer emergency calls from people in the 14 provinces and
regions.
"Moreover, we are planning to set up a special fund of 100
million to 200 million yuan to help farmers and businesses badly
hit by the snowfall," said Wu.
China Life, the country's largest life insurer, donated 10
million yuan ($1.38 million) to the Ministry of Civil Affairs on
Friday, while Taikang Life Insurance offered 3 million yuan
($416,000).
Though a large area has been affected by the bad weather,
average losses have been comparatively low, according to industry
insiders.
"About 90 percent of claims have been filed for damaged
vehicles," said a manager at China Pacific Insurance.
But Sunshine Property and Casualty Insurance Vice-President Li
Ke said many cases may remain unreported because heavy snow has
disrupted communications in many areas.
International support
In a message to President Hu Jintao, Pakistani President Pervez Musharraf
expressed his country's "sentiments of sympathy and total
solidarity with the government and people of China.
"Our thoughts and sincere good wishes are with our Chinese
friends who will undoubtedly overcome the effects of this natural
calamity," he said.
Former Cambodian King Norodom Sihanouk donated $50,000 to
China's disaster-relief efforts, according to the Foreign Ministry
on Friday. Sihanouk also expressed his condolences to the Chinese
people in a letter to Foreign Minister Yang Jiechi.
(China Daily February 2, 2008)
