The People's Square Subdistrict Office in Huangpu District insured its residents against fire with coverage worth 230 million yuan (US$27.71 million).
Subdistrict officials signed the agreement with Shanghai Dazhong Insurance Company yesterday. It will pay 180,000 yuan for the coverage that will benefit about 12,000 families in the jurisdiction.
It's a pioneering move in the country for a government to provide a fire insurance policy for ordinary people, according to an official from Jiangtai Insurance Broker Company, which helped arrange the deal.
"It is a perfect match involving neighborhood, insurance and fire control," he said.
The insurance policy covers economic loss for private property, public facilities and casualties resulting from fires.
Half of the residences in the area are old-style lanes and alleys, where infrastructure does not meet fire control standards. There are many hidden perils in those homes, said Liu Meilin of the People's Square Subdistrict Office.
Authorities once used plenty of manpower and material resources to deal with the aftermath of a blaze. Sometimes neighboring residents were called on to contribute money to help fire victims in their time of need.
"But now every family victimized by a blaze will receive a maximum of 40,000 yuan and the compensation ceiling for victims is 100,000 yuan each," Liu said.
She listed a series of statistics to show that fire control capacity in the neighborhood has greatly improved during the past few years.
"A total of 4,001 fire extinguishers and 132 fire hydrants were installed, and damaged wires about 9,450 meters long were repaired," she said. "The rectification involved 454 residential buildings, benefiting 2,824 families."
Chen Fei, director of the Shanghai Fire Control Bureau, spoke highly of the joint fire security efforts by Huangpu officials and Dazhong Insurance Company.
In 2003, the subdistrict office appealed to residents to buy fire insurance policies, but few responded.
"I was very glad when informed that the government paid for our insurance," said a resident woman surnamed Qin, who lives in a six-story old-style building on Dagu Road. "My life is more secure now."