Huangpu takes out catastrophe insurance

Huangpu District residents are getting extra protection from disasters caused during this year’s flood season.

The district government yesterday became the first in the city to purchase catastrophe insurance for residents and those working or traveling in Huangpu.

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.

“Each household can be compensated by at most 12,000 yuan (US$1,870) if their apartment is flooded or damaged during disasters,” Gan Yuli, deputy general manager with China Pacific Insurance Co’s Shanghai branch told a local television station.

“Other property losses can lead to compensation up to 6,000 yuan,” Gan added.

Furthermore, a maximum of 800,000 yuan 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.

The district government purchased the insurance with governmental funds. China Pacific Insurance became the chief insurer through a public bid. It is teaming up with Ping An Insurance and PICC as joint insurers.

“The downtown district has a large number of residents and many old brick-and-wood houses that are at risk in case of disasters,” said Chen Zhuofu, deputy director of Huangpu. The district has over 2 million people, including 650,000 residents as well as tourists and office workers, said Chen. All of them will be covered under the insurance scheme.