More Chinese travellers opt for aviation insurance after MH370, says paper
The large object earlier spotted by satellites in the Indian Ocean. – Reuters pic, March 24, 2014.
Chinese travellers are not taking chances following the disappearance of Malaysia Airlines flight MH370 and are keener than ever to buy aviation accident insurance, the South China Morning Post (SCMP) reported today.
The disappearance of the plane hit close to home as two-thirds of the 227 passengers on board were Chinese nationals.
"I did not consider buying insurance every time I flew, but I will the next time as the MAS case alerted me to the risk," Zhang Jin told the SCMP.
The Beijing resident told SCMP that he flew four to five times annually.
"I have to consider how to protect my family if I am injured or die in a similar incident," Zhang said.
Insurance professor Wang Xujin told the SCMP that he had never been aware of the importance of the aviation accident insurance, although it was easy to buy it online.
Wang, who teaches at the Beijing Technology and Business University, said claims paid by the airline to passengers were lower than that for personal aviation accident insurance.
The payout for aviation accident insurance is capped at two million yuan (RM1.08 million), according to the China Insurance Regulatory Commission.
"The aviation accident insurance is on a voluntary basis, but it's preferred," Wang said.
He said travellers should also pay attention to the legal terms and disclaimers on exclusion coverage, such as war, military acts and terrorism.
The SCMP reported that sales of aviation accident insurance had risen since MH370 disappeared more than two weeks ago.
An aviation accident insurance product for a single round trip offered by China Pacific Insurance on online shopping platform Taobao saw an average of 43 transactions per day after the incident.
The average in the week before the flight vanished was about 22 transactions.
A PICC Life Insurance's one-year aviation accident insurance product recorded 12 policies sold after the case, compared with three sold a week before the incident.
Li Bin, a lawyer at Beijing Gaose Law Firm, said Chinese travellers were increasingly aware of the insurance.
"However, travellers should pay more attention to coverage of the different policies," Li told SCMP.
"I would recommend general accident insurance which offers a more comprehensive coverage," Li said.
"The coverage begins only when the insured passenger steps into the aircraft and until he walks out of the cabin door.
"But other accidents could take place during the trip," he cautioned.
Many Chinese travellers' awareness on buying personal insurance is low, and some may rely on the liability insurance included in the ticket purchase.
"Claims against that kind of insurance are paid by the insurance company to the airline, and the airline pays the passengers in case of injury or death," Li said.
"It's different from personal accident insurance where passengers can receive the claims from insurance companies directly."
Li said most insurance companies would exclude terrorism from coverage in aviation accident insurance, while some also excluded carriers of HIV, the virus which causes AIDS.
Flight MH370, carrying 12 crew members and 227 passengers, dropped off civilian radar at 1.20am on March 8.
Despite a massive 26-nation search and rescue operation, there has been no concrete sign of the missing Boeing 777-200ER (9M-MRO).
– March 24, 2014.
----------------------------------------------------------------------------------------------------------------------
Insurers prepare to pay MAS over RM365m for lost MH370 plane
KUALA LUMPUR, March 24 — Malaysia Airlines (MAS)’s insurers have started paying the airline £67 million (RM365.6 million) for the plane that remains missing with the 239 people on board.
Allianz Global Corporate & Speciality, the lead insurer for MAS, has placed the payment to MAS in an escrow account, UK daily The Telegraph reported yesterday.
According to the paper, Allianz said it will provide hardship payments for families of the 227 passengers on board MH370 to help them cope with current expenses.
With the search now in its third week, The Telegraph said the payment was made as standard air travel policy states the assumption that a plane is destroyed if it goes missing for over two days.
The paper noted that Allianz was not the only insurer involved, as the insurance policy had been reinsured by other international companies.
While it said millions more could be paid out to the 227 passengers’ families, The Telegraph said insurers are keeping a close eye on the search as terrorism or negligence could change the amount that they would have to pay.
In interviews with The Malay Mail Online, lawyers have urged families to seek legal advice before signing documents for compensation from airlines and their insurers.
Lawyers had also previously told The Malay Mail Online that families of those on Beijing-bound flight MH370 can already start claiming for compensation even before the discovery of the plane and bodies.
At a minimum, an international aviation treaty — the Montreal Convention — allows the next-of-kin of the plane’s 227 passengers to seek up to US$175,000 (RM573,475) each without proving any fault with MAS.
MH370 and the 239 people on board disappeared less than an hour after the Beijing-bound flight left Kuala Lumpur International Airport at 12.41am on March 8.
Search operations involving 26 countries are still being carried out, with sighting of debris possibly linked to the plane in recent days touted as “credible leads” and raising hopes of the plane’s discovery.
The large object earlier spotted by satellites in the Indian Ocean. – Reuters pic, March 24, 2014.
Chinese travellers are not taking chances following the disappearance of Malaysia Airlines flight MH370 and are keener than ever to buy aviation accident insurance, the South China Morning Post (SCMP) reported today.
The disappearance of the plane hit close to home as two-thirds of the 227 passengers on board were Chinese nationals."I did not consider buying insurance every time I flew, but I will the next time as the MAS case alerted me to the risk," Zhang Jin told the SCMP.
"I have to consider how to protect my family if I am injured or die in a similar incident," Zhang said.
Insurance professor Wang Xujin told the SCMP that he had never been aware of the importance of the aviation accident insurance, although it was easy to buy it online.
Wang, who teaches at the Beijing Technology and Business University, said claims paid by the airline to passengers were lower than that for personal aviation accident insurance.
The payout for aviation accident insurance is capped at two million yuan (RM1.08 million), according to the China Insurance Regulatory Commission.
"The aviation accident insurance is on a voluntary basis, but it's preferred," Wang said.
He said travellers should also pay attention to the legal terms and disclaimers on exclusion coverage, such as war, military acts and terrorism.
The SCMP reported that sales of aviation accident insurance had risen since MH370 disappeared more than two weeks ago.
An aviation accident insurance product for a single round trip offered by China Pacific Insurance on online shopping platform Taobao saw an average of 43 transactions per day after the incident.
The average in the week before the flight vanished was about 22 transactions.
A PICC Life Insurance's one-year aviation accident insurance product recorded 12 policies sold after the case, compared with three sold a week before the incident.
Li Bin, a lawyer at Beijing Gaose Law Firm, said Chinese travellers were increasingly aware of the insurance.
"However, travellers should pay more attention to coverage of the different policies," Li told SCMP.
"I would recommend general accident insurance which offers a more comprehensive coverage," Li said.
"The coverage begins only when the insured passenger steps into the aircraft and until he walks out of the cabin door.
"But other accidents could take place during the trip," he cautioned.
Many Chinese travellers' awareness on buying personal insurance is low, and some may rely on the liability insurance included in the ticket purchase.
"Claims against that kind of insurance are paid by the insurance company to the airline, and the airline pays the passengers in case of injury or death," Li said.
"It's different from personal accident insurance where passengers can receive the claims from insurance companies directly."
Li said most insurance companies would exclude terrorism from coverage in aviation accident insurance, while some also excluded carriers of HIV, the virus which causes AIDS.
Flight MH370, carrying 12 crew members and 227 passengers, dropped off civilian radar at 1.20am on March 8.
Despite a massive 26-nation search and rescue operation, there has been no concrete sign of the missing Boeing 777-200ER (9M-MRO).
– March 24, 2014.
----------------------------------------------------------------------------------------------------------------------
Insurers prepare to pay MAS over RM365m for lost MH370 plane
KUALA LUMPUR, March 24 — Malaysia Airlines (MAS)’s insurers have started paying the airline £67 million (RM365.6 million) for the plane that remains missing with the 239 people on board.
According to the paper, Allianz said it will provide hardship payments for families of the 227 passengers on board MH370 to help them cope with current expenses.
With the search now in its third week, The Telegraph said the payment was made as standard air travel policy states the assumption that a plane is destroyed if it goes missing for over two days.
The paper noted that Allianz was not the only insurer involved, as the insurance policy had been reinsured by other international companies.
While it said millions more could be paid out to the 227 passengers’ families, The Telegraph said insurers are keeping a close eye on the search as terrorism or negligence could change the amount that they would have to pay.
Lawyers had also previously told The Malay Mail Online that families of those on Beijing-bound flight MH370 can already start claiming for compensation even before the discovery of the plane and bodies.
At a minimum, an international aviation treaty — the Montreal Convention — allows the next-of-kin of the plane’s 227 passengers to seek up to US$175,000 (RM573,475) each without proving any fault with MAS.
MH370 and the 239 people on board disappeared less than an hour after the Beijing-bound flight left Kuala Lumpur International Airport at 12.41am on March 8.
Search operations involving 26 countries are still being carried out, with sighting of debris possibly linked to the plane in recent days touted as “credible leads” and raising hopes of the plane’s discovery.
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