HAIKOU, February 18. /TASS/. The first insurance system for companies which suffered losses amid coronavirus outbreak was launched in China's Hainan province, www.yicaiglobal.com reported on Tuesday.
Insurance assets of 12 million yuan (about $ 1.7 million) will cover the losses companies suffered due to an outbreak of coronavirus, amoubting up to 200 million yuan ($ 28.6 million): for instance, temporarily suspended work schedule and halted production. In such cases, insurance companies compensate for losses related to the depletion of raw materials, expenses on employee wages, the introduction of quarantine and other losses.
Subsidies of up to 70% of insurance contributions are also provided to encourage companies to resume work under amid the epidemic. According to the website, about 100 companies operating in the tourism and manufacturing sectors have already used this type of insurance.
On February 10, the provincial government, together with the Hainan branches of the banking and insurance regulators, instructed the three biggest insurance companies on the island to set up an insurance project that would reduce the risks of potential losses amid coronavirus outbreak and encourage enterprises to resume work. Pacific Insurance, PICC Property and Casualty, as well as Ping An Property & Casualty Insurance implemented the task set by the authorities and regulators in just two days.
Each of these companies will carry out one third of the total volume of work on issuing insurance. At the same time, the Hainan subsidiary of Pacific Insurance will cover 21% of the sum covered by the insurance, and the rest will be paid by the provincial insurance sector.
On December 31, Chinese authorities informed the World Health Organization (WHO) about an outbreak of an unknown pneumonia in the city of Wuhan — a large trade and industrial center in central China populated by 11 million people. The source of the outbreak is the COVID-19 coronavirus. Cases of coronavirus have been documented in at least 25 countries, including Russia. WHO declared the coronavirus outbreak in China a global health emergency.
Currently, the total number of people infected with coronavirus exceeds 72,000 in China with over 1,800 reported deaths. Meanwhile, approximately 12,500 people are said to have recovered from it.