(Yicai Global) March 30 -- The insurance claims related to the crashed China Eastern Airlines flight MU5735 have been split into two, covering the financial loss of the aircraft itself and compensation for the victims, according to industry insiders.

People’s Insurance Company of China said the plane that crashed in Guangxi Zhuang Autonomous Region on March 21 was underwritten by the firm, which was also the chief executor. Ping An Property & Casualty Insurance and China Pacific Insurance’s unit China Pacific Property Insurance said they were also responsible for liability coverage of the country’s civil aviation fleet.

An official at Ping An Property told Yicai Global that airlines usually buy four types of insurance for an aircraft’s hull, spares, and liability, aviation war risk, war liability, and aviation hull deductibles.

All aircraft in China’s civil aviation fleet, except those of Hainan Airlines, are under the ‘aviation insurance of the united fleet of the Civil Aviation of China,’ which includes all the above types of cover.

The downed Boeing 737-800 was 6.8 years old and according to industry analysts, the average price for such a model was about USD90 million at the time of purchase. Considering depreciation, compensation for the plane’s hull should be between CNY200 million and CNY300 million (USD31.5 million and USD47.2 million), they estimated.

But insiders noted that the final settlement will also depend on the result of the accident investigation. If Boeing is found liable for the crash, the insurers can require the US aircraft maker to bear part of the cost through subrogation.

With regards to claims for the 132 people who lost their lives in the crash, carrier liability has a limit of CNY400,000 (USD63,000) for each passenger. But the final amount paid by the carrier is often increased to international levels, which also include moral consolation and funeral expenses, according to industry insiders.

The families of those who dies aboard the Henan Airlines plane that crashed in the city of Yichun, in Heilongjiang province, in August 2010 received CNY960,000 per person. After 12 years, compensation for the victims of flight MU5735 will most likely exceed the previous level, the sources said.

Passengers who had bought commercial insurance, including health, accident, or life insurance, can also apply for claims to their insurer, according to China’s regulations, which does not affect the liability the carrier bears.

A number of insurance companies have already received dozens of related reports and some of them have already settled a few claims, Yicai Global learned.

Editor: Futura Costaglione