HONG KONG – The insurance sector is bracing for compensation claims expected to exceed HKD2.6 billion (RM1.37 billion) following a devastating fire in Tai Po that claimed more than 55 lives on Thursday, according to the South China Morning Post.
Insurance Authority Chairman Stephen Yiu Kin-wah said most insurers have already taken immediate action to assist victims of the tragedy.
“Hotline services have been activated and claims procedures have been simplified and expedited to ensure victims receive the support they need,” he reportedly said.
The Insurance Authority has established a special task force to ensure all fire-related claims are processed without delay.
The fire broke out across seven buildings within the Wang Fuk Court complex, which was undergoing renovation, leaving thousands of residents displaced before firefighters finally brought the blaze under control yesterday afternoon.
The Hong Kong Federation of Insurers confirmed that its members have agreed to waive the requirement for death certificates in claim submissions and will offer premium payment deferments for affected families.
Meanwhile, the Hong Kong Monetary Authority and the Hong Kong Association of Banks have urged financial institutions to extend relief measures, including fast-tracking loan applications and waiving late payment fees.
Hong Kong last faced a major insurance payout in 2023, following the blaze at the under-construction Kimpton Hotel, which resulted in losses estimated between HKD200 million (RM106.2 million) and HKD500 million (RM265.5 million).