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June 14, 2014

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Chinese to spurn insurance payout

MALAYSIA Airlines has begun giving out US$50,000 in advance insurance payments to families of people aboard the plane, but many Chinese relatives have indicated they’ll reject it. There were 153 Chinese passengers aboard the jet.

Six Malaysian and one Chinese family have so far received the payments, Malaysian Deputy Foreign Minister Hamzah Zainuddin said on Thursday. He said full payout would be made after the plane is either found or officially declared lost.

But Steve Wang, a spokesman for some of the relatives, said yesterday that families of 127 Chinese passengers have indicated that they will reject any preliminary compensation, partly because they think that Malaysia Airlines should be paying them economic assistance while the search for the plane continues.

They believe that this assistance should be unrelated to any payout given once the incident is ruled a crash and that Malaysia Airlines is trying to shirk that responsibility by offering the preliminary compensation, Wang said.


 

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