Chinese insurance company pays $6.5 million to settle with US over insurance claims

China’s insurance industry is under fire after a US insurance company paid $6 million to resolve claims over claims made in the state-run insurance giant, according to The Wall Street Journal.

The Chinese company, Dandong Insurance Co., said it had paid the sum in full, adding that the claims are now in the hands of the Chinese Ministry of Industry and Information Technology.

The WSJ article quotes a Chinese state-owned media report saying the Chinese insurer was forced to settle the claims after its insurer in Shanghai had been denied a claim due to insufficient evidence, but it declined to give details.

The article also reported that Dandang Insurance Co. had settled a claim in December in which a man was injured by a car driven by a fellow passenger after an accident on a city street in the southern city of Wuhan.

The company also settled a similar claim in February this year.

In December, the WSJ reported that a Chinese insurance policy holder had died after his car collided with a tree in Hubei province, which was in China’s Guangdong province.

In May, the same newspaper reported that the Chinese government had taken legal action against Dandongs insurer for the death of a Chinese man who had suffered a heart attack after being hit by a vehicle.

Dandangs policy holder, identified as Liu Dongsheng, died of a heart condition, but the report did not give the cause of death.

A spokesperson for Dandans insurer said it was unable to comment due to the pending legal proceedings.

The insurance company has not responded to Reuters’ requests for comment.

China’s policyholder was identified as Zhang Yiming, and he was hit by the vehicle on May 16, according the report.

Zhang, whose wife died from a heart ailment, had no insurance coverage.

Zhang’s wife was in her 60s and had no health insurance, the report said.

A Dandng policyholder in the city of Zhengzhou in Hainan province told the WSZ the insurance company denied the claim.

A spokesman for the city’s insurance department told Reuters that Zhang was the policyholder and the claim was rejected.

The Wuhans government is conducting an investigation into the death, according Reuters.