Catastrophe Insurance Launches its Pilot Program in Shenzhen

Catastrophe Insurance Launches its Pilot Program in ShenzhenThe city has launched its first catastrophe insurance program on a pilot basis a 36 million yuan deal the Shenzhen branch of PICC property and Casualty Co. and the city. Those affected by catastrophes will be insured up to 2.5 billion yuan. The government funded insurance will cover the costs of medical treatment, disabilities and deaths that are caused by disasters.

The catastrophe insurance will cover 15 kinds of disasters, ranging from heavy winds, floods, torrential storms, landslides, mudslides, tsunami, earthquakes and lighting strikes. The maximum compensation for any individual during a single disaster is up to 100,000 yuan while the ceiling of compensation on a single disaster is around 2 billion yuan. Furthermore the catastrophe insurance will cover any victims in event of nuclear accidents tht is caused by any of the disaster situations. Policy holders living in Shenzhen during a catastrophe will compensated properly.

The city is also establishing a 30 million yuan catastrophe fund as a supplement to the insurance policy, in which if the catastrophe losses are covered by government subsidies and donation to the funds is highly encouraged. The city government has been trying to establish an insurance fund for catastrophe since 2011 and was only approved by the China Insurance Regulatory Commission last year making it the first city to pilot such program.

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