News Non-Life05 Apr 2021

Taiwan:Total train crash insurance payouts estimated to be more than US$17m

| 05 Apr 2021

Insurance payouts in respect of the 2 April fatal train crash near the eastern city of Hualien could total at least NT$500m ($17.52m), according to estimates that take into account liability settlements by the railway company as well as personal insurance payouts by life and P&C insurers.

The Financial Supervisory Commission (FSC) says that compensation of at least NT$4.5m would be paid to beneficiaries in respect of each death from the Taroko Express train crash. The amount includes basic coverage of NT$2.5m in carrier’s liability insurance offered by Cathay Century Insurance and NT$2m in compulsory vehicle liability insurance offered by MSIG Mingtai Insurance, the regulator says.

At least 51 people were killed and more than 200 injured the crash. The Central News Agency reported that a truck whose handbrake was not engaged was suspected to have slid off a slope into the path of the eight-car express train which was derailed on impact with the truck. Around 490 people, including crew, were reported to be on board the train when the crash took place.

Insurance cover for the injured

Cathay Century, which has underwritten the carrier’s liability insurance policy for the Taiwan Railways Administration (TRA), would also pay NT$1.4m each for people severely injured in the crash and NT$400,000 each for those less severely hurt for injury and medical treatment, the FSC said.

The property insurer’s total coverage for a single incident is NT$200 million, according to its contact with the TRA, the FSC said.

MSIG Mingtai, which provides the TRA’s compulsory vehicle insurance, would pay people disabled in the derailment NT$2m each and NT$200,000 to people less severely injured, the FSC said.

In addition, Cathay Life, Fubon Life, China Life, Taiwan Life and other insurance companies have also launched care services for policyholders, including fast claims, prepayment for hospital treatment, deferred payment of premiums, and policy loans. The FSC says that insurers have identified at least 39 of those killed in the crash who had taken out life insurance policies.


 

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