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Insurance Companies Pay Air-Crash Compensation
The People's Insurance Company of China (PICC) has paid two million U.S. dollars in advance compensation to the Northern Airlines for the plane crash at Dalian in northeast China's Liaoning Province Tuesday night.

It is reported that 39 passengers had taken out accident insurance policies, three of which were PICC policies. The PICC Dalian Branch has contacted the families of the three victims and has promised to pay out compensation as soon as possible.

The PICC insured the crashed plane for a premium of 10.49 million U.S. dollars and has pledged to closely cooperate with the Northern Airlines in settling the case.

Other insurance companies have also promised to speedy and competent service to their customers. So far the families of seven victims have made telephone contact with the Ping'an Insurance Company. A report said one victim was insured for over one million yuan. The company has yet to confirm this.

The MD-82, belonging to China Northern Airlines, was flying from Beijing to Dalian carrying 103 passengers and nine crew when it crashed into the sea Tuesday night after a fire was reported in the cabin.

(People's Daily May 9, 2002)

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