As the victims of Tianjin blasts have started to claim compensation from insurance companies, it is expected that the claims for property damages will incur 5 to 10 billion Yuan ($780 million to 1.56 billion) in total payment.

According to China Youth Daily, People's Insurance Company of China and its subsidiary company in Tianjin have started implementing their Major Emergent Accident Response Plan, checking on clients’ information and offering services in settlement of claims.

By 7:00 a.m. Friday local time, China United Insurance Holding Company had received seven claims, including four in vehicle insurance, one in employer liability insurance and one in property insurance with its Tianjin subsidiary company, estimated to be 100,000 Yuan ($15,648) in total.

At the same time, Sunshine Insurance Group Corporation Limited had received claims for 14 cases of vehicle insurance, 16 cases of property insurance and one case of health and accident insurance, totaling 24.4 million Yuan ($3.82 million).

Hao Yansu, dean of the Insurance College at the Central University of Finance and Economics, said that insurance companies are supposed to compensate the victims who suffer losses as the blast was a sheer accident instead of an act of God.

“As long as the victims have bought their insurance, insurance companies should be responsible for compensating for the loss of the insured properties,” said Hao.

He also pointed out that the claims related to the blast will mainly involve three kinds of insurance, which are life insurance with government paid premiums, employer liability insurance that enterprises bought for their employees and property insurance that will cover such properties as damaged vehicles and factory buildings in the blast. 

The property insurance claims will likely result in the largest amount of payment among the three kinds of insurance, according to Hao.