China insurers begin paying compensation

[BEIJING] Chinese insurance companies said yesterday they had started paying compensation to the families of passengers who were on board the missing Malaysia Airlines flight MH370.

The companies said compensation work had been launched immediately after Malaysian Prime Minister Najib Razak said late on Monday the flight had "ended" in the southern Indian Ocean, even though no concrete evidence or full information has supported this conclusion yet.

China Life, the country's largest insurance company, said it had 32 clients on board the flight and estimated its total compensation at around nine million yuan (S$1.83 million). The company had paid 4.17 million yuan in compensation to families of seven clients by Tuesday. "China Life is deeply grieved at the news and will ensure compensation and all other related services are fully implemented," a company spokesman said.