Residents and those working or travelling in the Huangpu district in Shanghai – one of the most densely populated urban districts in the world – will receive financial protection from natural disasters during 2018’s flood season thanks to a first-of-its-kind purchase of catastrophe insurance by the district government, according to Shanghai Daily.
The insurance secured by the district government was purchased using governmental funds, with China Pacific Insurance – who will team up with Ping An Insurance and PICC as joint insurers – becoming the chief insurer through a public bid.
Housing or family property losses, as well as death during typhoon, rainstorm, flood or other disasters within the district can be compensated through the insurance, reported Shanghai Daily.
Gan Yuli, Deputy General Manager of China Pacific Insurance Co’s Shanghai branch, said, “Each household can be compensated by at most ¥12,000 (US$1,870) if their apartment is flooded or damaged during disasters. Other property losses can lead to compensation up to ¥6,000 ($934).”
Additionally, a maximum of ¥800,000 ($1,246,680) will be compensated under the scheme for any death caused by typhoon, rainstorm, flood or other emergencies, according to the company.
The rescuers taking part in flood prevention or disaster relief can receive compensation for serious injury or medical treatment.
Chen Zhuofu, Deputy Director of Huangpu, concluded, “The downtown district has a large number of residents and many old brick-and-wood houses that are at risk in case of disasters. The district has over 2 million people, including 650,000 residents as well as tourists and office workers. All of them will be covered under the insurance scheme.”