Payments begin for MH370 families

Payments begin for MH370 families

The insurers of Malaysia Airlines Flight MH370 have begun to pay claims to the families of those who were on the plane.

Families of the passengers have begun to be paid $50,000 each in initial compensation.

Malaysia's deputy foreign minister Hamzah Zainudin has announced that so far six Malaysian and one Chinese family had received the advance payment, to which all the families of the 239 passengers and crew on board are entitled.

He added that talks have begun with forty more Chinese families, to decipher whether they are entitled to compensation.

Full payment to the families - who can claim more than three times the amount of the initial payout - would be made later, Hamzah said, however he stressed that the government was not yet prepared to declare the plane lost.

"When we talk about the full payment, we have to wait until we announce the issue on the tragedy MH370 is over ... whether the plane is found, whether we announce the plane is lost," he said.

Passengers' families can claim up to about US$175,000 under International Civil Aviation Organisation rules, regardless of fault, in a plane crash.

Insurer Allianz is at the head of a consortium making the payments.

Despite the criticism it faced following the disappearance of MH370, Malaysia's government has pledged to keep looking for the plane in a joint effort with Australian authorities.

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