Hong Kong's insurance sector is expected to face claims of HK$2.6bn ($334m) related to the deadly fire that broke out on 26 November in a large housing estate, Wang Fuk Court, in Tai Po that has claimed at least 75 lives and razed seven buildings.
The newspaper, South China Morning Post, reported the estimated insurance losses, citing industry insiders.
Separately, several other media reported that the Wang Fuk Court owners’ corporation had purchased insurance coverage for the estate. The coverage, with a term of two years ending 31 December 2026, includes building and common-area property insurance, public liability insurance, cash insurance, and group personal accident insurance. The details include:
|
Insurance type
|
Sum insured HK$
|
Premium
(2 years) HK$
|
|
Building and common-area property insurance
|
2 bn
|
240,240.00
|
|
Third-party bodily injury and death liability (required by law)
|
10m per incident
|
20,020.00
|
|
Third-party liability (person and property)
|
20m per incident
|
70,070.00
|
|
Group personal accident insurance for up to 65 persons (aged 7–70) participating in corporation activities
|
100,000 per person
|
3,903.90
|
|
Cash in transit
Cash stored in locked drawers or safes
Cash stored in locked drawers or safes outside office hours
|
100,000
100,000
30,000
|
3,503.50
|
|
Source: National Business Daily
|
Apart from the fatalities, more than 70 people were injured and over 200 were missing.
“Many of the victims have insurance coverage,” the Hong Kong Federation of Insurers (HKFI) said in a statement.
Wang Fuk Court is a housing complex made up of eight blocks, providing close to 2,000 residential units that housed around 4,600 residents.
The owner’s corporation purchased the insurance policies from China Taiping Insurance. Shares of the holding company, China Taiping Insurance Holdings, fell by more than 8% during early trading before narrowing losses by midday.
Response
To assist the victims in understanding their life insurance, home insurance, building insurance, medical insurance, and personal accident insurance coverage, the HKFI has established a special inquiry service. This includes phone and email inquiries.
The federation said, “HKFI member companies have taken immediate actions, including: setting up a hotline to answer inquiries from victims regarding the scope of policy coverage and specific claims arrangements; simplifying and expediting the claims process; providing additional assistance beyond the policy coverage; rallying agents to offer instant help to their victimised clients; prioritising claims from affected policyholders of life, medical, personal accident, household, fire insurance, etc; waiving death certificate for death claims as far as practicable; offering premium holiday or extending grace period for premium payment; and waiving/reducing interest for policy loan for a designated period of time.”
Meanwhile, the Insurance Authority has formed a task force led by senior management to press ahead with the work carried out by relevant insurers and ensure that adequate resources are deployed by the industry to handle enquiries and claims.
IA Chairman Stephen Yiu said, “I am aware that the insurance companies have taken immediate contingency measures after occurrence of the fire, set up dedicated hotlines, streamlined and sped up claims procedures, and offered additional assistance beyond the policy coverage to help those people who are affected overcome their difficulties.”