A source from Ping An Life Insurance Company, a Shenzhen-based insurance company, told Xinhua that the severe acute respiratory syndrome (SARS) is now officially considered an infectious disease and that insurance companies will be required by the China Insurance Regulatory Commission (CIRC) to pay compensation to SARS patients according to the terms of their respective health and life policies.

The source said the company's Beijing branch had notified the family of a woman who died of SARS on April 14 that the life insurance policy claim would be processed on Tuesday. It is believed to be the first insurance compensation case in Beijing, the source said.

An official from the compensation department of the Pacific Insurance Company said its health and life insurance policies also apply to SARS patients. The company pledges to pay life insurance claims in the event of SARS-related deaths, and the company will also pay for SARS clients' medical coverage.

A CIRC official told Xinhua that insurance companies in Beijing, Shanghai and Shenzhen are busy processing compensation payments for those infected with SARS, adding that she believes there will be more SARS compensation cases throughout the country.

(Xinhua News Agency April 25, 2003)