Anti-China riots cost Taiwan insurers at least US$10 million

05/29/2014 10:45 PM

Taipei, May 29 (CNA) The Vietnamese subsidiaries of Cathay Financial Holdings' Property Insurance Co. and Fubon Property Insurance Co. on Thursday estimated that their preliminary losses linked to the recent anti-China riots in Vietnam stood at NT$70 million (US$2.33 million) and NT$250 million (US$8.33 million), respectively.

The Hanoi branch of Fubon Insurance's fully owned subsidiary in Vietnam -- Fubon Insurance (Vietnam), said that direct losses it sustained related to the riots totaled NT$1.1 billion, but after deducting the amount covered by its reinsurance program, it only has to pay NT$250 million in compensation claims.

The risk diversion mechanism cut the actual expense to NT$250 million, the insurer added.

Fubon Insurance (Vietnam), meanwhile, said it has set up a task force to help customers with 223 claims for compensation.

As for Cathay Property Insurance Co., it will help customers with 59 compensation claims.

About 1,100 Taiwanese firms reportedly stopped operations as around 20,000 rioters in May broke into, looted and set fire to factories, many of which were Taiwanese owned, in southern Vietnam during protests over China's installation of an oil rig close to the disputed Paracel Islands in the South China Sea claimed by Taiwan, China and Vietnam.

The protesters mistakenly thought the Taiwan-invested companies belonged to Chinese investors.

All foreign investments in Vietnam are required to purchase fire, strike and riot insurances.

(By Tien Yu-pin and Evelyn Kao)


Related stories:●May 27: More Taiwanese factories report damage from Vietnam riots: MOEA●May 21: Taiwan, Vietnam discussing losses incurred during rioting

(Click here for developments related to the anti-China protest-turned-riot in Vietnam.)

    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.