The JoongAng Ilbo reports that North Korea has asked British and Russian reinsurance companies to pay Pyongang reinsurance claims. In so doing, North Korea has released erstwhile unknown facts about several disasters that have taken place in the secretive nation.
There were four disasters mentioned:
- The sinking of a Wonsan-Hamhung ferry in April that killed some 100 of 200 passengers;
- A train collision in Kowon, Hamkyongnam-do in April that left 270 soldiers and 400 civilians dead;
- A train derailment just outside of Nampo in April that killed dozens;
- A civilian helicopter crash in May that caused a yet unknown number of casualties.
Or so said multiple sources involved with North Korea.
Given the scope of the disasters, North Korea may earn a substantial amount of money. It is already moving to demand insurance payments for flood damage earlier this summer, noted a South Korean government official, who also explained that North Korea now finds itself in a difficult spot thanks to U.S. financial sanctions, including the freezing of North Korea accounts at the Macao-based BDA.
Sources told the JoongAng that North Korea is putting in the effort, allowing foreign insurance inspectors access to accident sites previously off-limits to foreigners. It should also be noted that this is apparently the first time North Korea has released disaster details to the West.
15 Comments
So letting your infrastructure go to hell as you divert all funds to the military can pay big dividends, who’d have thought?
Would you trust an insurance claim coming from the North Korean government if you were an insurance appraiser or investigator?
…and wouldn’t the North Korean government be liable if, as micheal suggests, the accidents were caused by their own neglect?
I thought most insurance companies don’t pay out for “acts of God”.
I am just surprised they had reinsurance policies written up. But reinsurers re-insure insurance companies. Does NK have insurance companies? or do reinsurers often reinsure whole countries?
The article names the insurance company as the 조선민족보험총회사.
I see
I just reloaded the page and all of a sudden there is a new theme. Somehow clearer and lighter.
Things move quickly around these parts…
Of course not, but then again, insurance adjustors are suspicious by nature… It’s what they’re paid to be.
The article never states if the Nork insurance company ever paid anything. That just adds to the suspicion that this is just another way to recover the monies tied up by the US financial sanctions. If they do get the reinsurers to pay, how do they get the money?
Robert! The last theme was fine! Why are you changing it again?
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On the topic at hand, it was a surprise to me that the Norks would even have insurance (let alone reinsurance) out on these things.
And if the reinsurers pay out, whom, pray tell, will the money go to???
Sorry, “who,” not “whom.”
Wow, I’ve just seen three different themes/templates in the space of one minute! Wonder if I’ll see another one when I post this?
Well, considering that the ‘insurance company’ is probably operated by the government (likely with some sort of mandatory participation in place for Joe Norker), your guess is as good as mine ;). I’m a bit concerned, though… Is North Korea venturing into the practice of insurance fraud by offing its own people and then claiming their life insurance policies? I certainly wouldn’t put it past them.
I heard that this substantial amount of claim could not be a subject to the financial sanctions. Is it?
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