Families get insurance payouts

07:06, Mar 28 2014

Chinese insurance companies have started to pay compensation to the families of passengers aboard a missing Malaysia Airlines plane presumed crashed in the southern Indian Ocean.

China Life, the country's largest insurance company, has provided the families of seven passengers with a total compensation of 4.17 million yuan (NZ$770,600), Chen Honghao, an official from China Life's department of planning said.

China Life had 32 clients on the flight and estimates its total compensation would be 8.94 million yuan (NZ$1.66m), Chen said.

Flight MH370 is believed to have crashed with the loss of all 239 people aboard after flying thousands of miles off course on March 8 during a routine flight from Kuala Lumpur to Beijing.

More than 150 of the passengers were Chinese.

Shanghai-based China Pacific Insurance Co., Ltd.  compensated the family members of one of its clients with 525,000 yuan (NZ$97,000) on Wednesday, Yan Liping, an executive from the firm's branding division, said in an emailed statement.

China Pacific Insurance estimates that it will have to pay out a total of 4.04 million yuan (NZ$750,000) to the families of 12 clients on the flight, Yan said.

New China Life Insurance Co. Ltd. will compensate the families of nine clients on board the flight with a total of about 1 million yuan (NZ$190,000), Zhang Hongxia, a public relations official from the firm, said on Thursday.

Sunshine Insurance will provide 500,000 yuan (NZ$93,000) in compensation for the family of one of its clients, a woman surnamed Zhang from the firm said on Thursday.

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Reuters