• MSN
  • Hotmail
  • More
    • Autos
    • My MSN
    • Video
    • Careers & Jobs
    • Personals
    • Weather
    • Delish
    • Quotes
    • White Pages
    • Games
    • Real Estate
    • Wonderwall
    • Horoscopes
    • Shopping
    • Yellow Pages
    • Local Edition
    • Traffic
    • Feedback
    • Maps & Directions
    • Travel
    • Full MSN Index
  • Bing
  • NBCNews.com
  • TODAY
  • Nightly News
  • Rock Center
  • Meet the Press
  • Dateline
  • msnbc
  • Breaking News
  • Newsvine
  • Home
  • US
  • World
  • Politics
  • Business
  • Sports
  • Entertainment
  • Health
  • Tech
  • Science
  • Travel
  • Local
  • Weather
Advertise | AdChoices
  • Recommended: Are 'lone wolf' attacks the new path to terror?
  • Recommended: Toronto mayor denies, finally, use of crack cocaine
  • Recommended: Wife of slain British soldier says she thought he was 'safe' back in UK
  • Recommended: Sweden riots: Cops seek reinforcements, US citizens warned

First for breaking news and analysis: Compelling world news stories from NBC News journalists. Follow us on Twitter and Facebook.

  • ↓ About this blog
  • ↓ Archives
    • Icons Email E-mail updates
    • Icons Twitter Follow on Twitter
    • Icons Feed Subscribe to RSS
  • 17
    Dec
    2012
    12:56pm, EST

    'I can only rely on myself': Insurance is expensive, unfamiliar to disaster-hit Chinese

    In the U.S., Americans rely on insurance to protect against disasters. In China, families rely on themselves. CNBC Asia's Eunice Yoon has more from Beijing.

    By Adrienne Mong, NBC News

    Imagine a day-long storm with torrential rains and high winds pounding your home. By the time it blows over, you have lost everything you own. And you have no insurance.

    This was the scenario in July for residents of Fangshan, a district 50 miles from the center of China's capital Beijing. 

    Some 18 inches of rainfall dumped on Fangshan, causing a normally dry river to overflow and flood the surrounding homes. Half of the 77 people killed as a result of the storm were in Fangshan – as were half of the estimated 57,000 people forced to evacuate their homes.

    Liu Su Xia, a spirited 60-year-old grandmother, was in her house when the water rushed into the single-story courtyard building. 


    Follow @NBCNewsWorld

    "I was terrified," she said. "The water was this red color and went everywhere." 

    She grabbed a ladder and clambered up to the second floor window of her neighbor's house to watch. As soon as the water receded, she climbed back down and began cleaning what she could. 

    When her 63-year-old husband Xin Zhong Qi returned from the city center, where he was working on a construction site, they toiled together all night and into the next day to salvage what they could.

    "There was nothing worth saving," Xin said. "We had to throw everything away."

    As for compensation, "the government still hasn't come forward with a plan," Xin said.

    'I can only rely on myself'
    The flooding in Fangshan highlighted the Chinese state's weaknesses and faults – and also underscored how much ordinary Chinese still have to rely on themselves. In the United States, families rely on homeowners' insurance to protect them against damage from disasters such as Superstorm Sandy, which hit the Northeast in November. But in China, many ordinary people remain unaware of and often unable to buy insurance. 

    Read more China coverage on NBC's Behind The Wall

    Damage from the flooding across Beijing cost $1.6 billion, according to municipal officials. Authorities have supplied temporary housing in Fangshan and announced plans to help create new permanent housing on safer ground.

    But there was plenty of popular outrage over the authorities' handling of the disaster, especially the official casualty count, which many believed to be too low. Then there was criticism over the existing emergency response system, deemed too slow and inefficient. Finally, the destruction of so many homes raised concerns that existing buildings in Fangshan were built on unsafe grounds.

    After Hong Kong weathers typhoon, anger roils over Beijing flooding deaths

    Xin and Liu have not availed themselves of the temporary housing; it wasn't clear whether they were eligible or whether they did not seek out the option.

    Miguel Toran / CNBC Asia

    Friends help Xin Zhong Qi repair his home after it was damaged by flooding.

    "I can only rely on myself," said Xin. "At least 90 percent of the time, you have to rely on yourself."

    When asked whether they had ever heard of homeowners' insurance, Liu cackled.

    "Aiya! We’re peasants! Who has that kind of money?"

    Xin also admitted he doesn't quite understand what it is. 

    An opportunity?
    He's probably not the only one. The concept of homeowners' insurance is still new in China. It was barely two decades ago that private home ownership was re-introduced across cities, when the Communist Party gave millions of state workers the opportunity to buy their government-supplied homes at bargain basement rates.

    "With around 250 million households entering the middle class in China over the next five or 10 years, that's a great opportunity for insurance products to reach even deeper in the Chinese population," said Joe Ngai, managing partner at McKinsey & Co.'s Hong Kong office.

    Hong Kong offers insight into storm prep

    In fact, McKinsey believes China will be the second largest insurance market in the world after the U.S. in 2020.

    "We would think about insurance if it was offered to us," said Yu Shuang, another Fangshan resident whose home was badly damaged by the flood. Yu and her husband used their savings to repair their house and to replace their furniture and car. "But we're not sure whether we would want to look at what the government might offer or buy our own."

    Xin, however, remained skeptical.

    "We're old. We don't have that many years left. Why bother [buying insurance]? And we don't have any money," he said. "Anyway, this was a once in a lifetime event. One big flood in 60 years."

    More world stories from NBC News:

    • Video: Street fighting, shelling in Syria capital
    • Conservatives sweep to power in faltering Japan
    • Video: Pregnant Duchess Kate makes first public appearance
    • Luxury perfume makers create stink over Europe allergy laws
    • ANALYSIS: As Egypt votes on its constitution, what is at stake?
    • North Korean progress on nuclear arms, long-range missiles rattles US and allies
    • 'Who is my Mandela?' South Africans consider icon's place in a changing world

    Follow World News from NBCNews.com on Twitter and Facebook

    14 comments

    It's China, a second-world country at best. We have so many shady insurance companies here, imagine what's going to pop up in China. No wonder they are suspicious.

    Show more
    Explore related topics: weather, china, insurance, storm, beijing, natural-disaster, featured, adrienne-mong
  • 11
    Oct
    2012
    6:35am, EDT

    Apple's China supplier pushes for brain-damaged worker to leave hospital

    Reuters, file

    Zhang Tingzhen (center) is given a doll to play with by his mother Wei Xiuying while sitting beside his father Zhang Guangde at a Shenzhen hospital in southern China Sept. 26.

    By Reuters

    HONG KONG - Apple's largest contract manufacturer has been pushing for a Chinese worker left brain-damaged in a factory accident to be removed from hospital in a case that throws a harsh new spotlight on labor rights in China.


    Follow @NBCNewsWorld

    Zhang Tingzhen, 26, an employee of Taiwan firm Foxconn, had nearly half his brain surgically removed after surviving an electric shock at a plant in southern China a year ago. He remains in hospital under close observation by doctors, unable to speak or walk properly.

    However, Foxconn, which is paying Zhang's hospital bills, has been sending telephone text messages to his family since July, demanding they remove him from hospital and threatening to cut off funding for his treatment -- a move the firm says would be justified under Chinese labor law.


    Foxconn confirmed it had sent the messages, saying that under Chinese law the worker must submit himself to a disability assessment, a process that in Zhang's case would require him to be discharged from the Shenzhen hospital and travel the 43 miles to Huizhou, where he was first hired by Foxconn.

    As Apple CEO Tim Cook visits China to see factories firsthand, the Fair Labor Association's Auret Van Heerden tells cnbc about the overtime issues and safety risks found at two of Foxconn's factories that produce Apple products.

    Risk of brain hemorrhage
    The firm said in response to emailed questions that it would be prepared to return Zhang to the Shenzhen hospital after the assessment, though his father said Zhang was unfit to travel and that doctors felt he remained at risk of a brain hemorrhage.

    The case has raised fresh questions over the labor record of Foxconn, one of the biggest and most high-profile private employers in China, after a series of well-publicized suicides among its army of around a million workers and recent outbursts of labor unrest.

    Report: Riots break out at Foxconn factory in China

    It has angered labor activists who say Zhang's plight also highlights China's patchy and sometimes precarious welfare system for workers seriously injured in industrial accidents and point out that there are many workers worse off than Zhang.

    "They kept sending me SMSs every day to get my son out of hospital and to appear before an injury assessment body or they will stop paying all expenses, including his medical fees and our living expenses," Zhang's father, Zhang Guangde, said.

    "You cannot imagine the suffering they put me through, how I had to fight every inch of the way just to get money so we can take care of our son," he added, speaking at his son's bedside at the Number 2 People's Hospital in Shenzhen.

    Zhang was repairing a spotlight on an external wall at a Foxconn factory in Shenzhen, bordering Hong Kong, when he received an electric shock and fell 12 feet to the ground. He has since undergone five operations, has lost his memory, is incontinent and requires careful, regular monitoring.

    Worker at Apple-supplier Foxconn in China: 'We're humans, we're not machines'

    Workers who are disabled in workplace accidents and covered by insurance are eligible for compensation payouts, once their disability is assessed and graded by a panel of medical experts. The assessment is done after medical treatment is finished.

    Foxconn sent the text messages -- and according to Zhang's father at one point briefly halted payments to the family -- despite a provincial law stipulating that injured workers can remain in treatment for up to two years before they must be assessed for disability compensation.

    The company, however, denied that it delayed or stopped payments, saying it paid them on time.

    Zhang, whose case was alerted to Reuters by labor activists, has been in hospital since October 2011.

    'At the mercy' of system
    Doctors at the Number 2 People's Hospital declined to comment for this article, but Zhang's father, 50, said they had not indicated that he could be discharged and had said they needed to keep his son under observation after implanting a tube in his body to drain fluid from his brain cavity to his bladder.

    "The doctor told me they needed to monitor his condition and that for such serious injuries, a person was allowed to be treated in hospital for up to two years. After that, assessors can order treatment to be prolonged," the father said.

    Labor activists in China say Zhang is just one of many thousands of Chinese workers who are left permanently disabled or chronically ill by workplace accidents, at the mercy of a system that often requires them and their families to fight degrading battles for treatment funding and compensation.

    'This American Life' retracts damning report on Apple manufacturer Foxconn

    "China now has laws specifying the types of compensation that are due to workers. But in many serious industrial accidents, companies still put workers or their families through a lot of suffering just to get what is due to them," said Choi Suet-wah of the Chinese Working Women Network in Hong Kong.

    "They are robbed of their dignity," said Choi, who has extensive experience working with migrant workers in China.

    Zhang is actually one of the lucky ones, social workers say, pointing out that Foxconn has at least been paying his hospital bills and the living expenses of his family, which has moved to Shenzhen from central China to be with him.

    Worker suicide at Chinese plant of Apple supplier, Foxconn

    They estimate that at least four out of 10 Chinese workers are not covered by any kind of insurance and are left to fend for themselves when seriously injured in the workplace -- despite laws requiring all employers to insure their workers.

    "This is just one of many, many industrial accidents in China. And you almost certainly never get what you are entitled to, especially in serious cases," Choi said.

    Dad: Son calls me 'mother'
    Foxconn says it is insured against workplace accidents, which means its insurer would meet the cost of a compensation payment once Zhang's disability is finally assessed.

    But compensation in China can vary depending on the city in which a worker's disability is assessed, and this, according to Zhang's family, is why Foxconn wants him to travel to Huizhou and refuses to have him assessed in Shenzhen.

    Labor activists say wages and compensation levels are all substantially lower in Huizhou than in Shenzhen, one of the most expensive cities in China.

    When asked why Zhang could not be assessed in Shenzhen, Foxconn said the law required him to go to Huizhou because he had signed his employment contract there. It added that it was prepared to send him back to the hospital in Shenzhen if the assessors determined that he required more medical attention.

    In hospital, Zhang walks unsteadily, holding on to the bed frames of other patients in his shared room and, with a smile, sits down next to his father whose face tightens with emotion.

    "He calls me 'mother' and calls my wife 'father.’ He can only mimic words you ask him to say, it is meaningless," the elder Zhang said later, holding a jar containing large fragments of his son's cranium. Doctors replaced a portion of Zhang's skull with synthetic bone.

    He said that despite Foxconn's funding -- a monthly allowance of 11,000 yuan ($1,800) plus treatment costs -- the family had racked up 200,000 yuan ($31,800) in debt to pay for medicines not provided by the hospital and other expenses.

    Back home in central Henan province, the family was building a house for Zhang to live in after his impending marriage when he was injured.

    "We were building a three-story house," the elder Zhang said. "The project has since been abandoned and all the building materials we bought have been washed away by rain. But these workers still have to be paid. My whole life is over."

    More world stories from NBC News:

    • German cabinet approves controversial circumcision bill
    • Tunisian magazine teaches children how to build a Molotov cocktail
    • Video: Australian PM launches attack on ‘sexist’ opponent
    • Pakistani teen blogger shot by Taliban 'critical' after surgery
    • Reports: South Korea says defector is spy who plotted assassination
    • China vs. Japan, but the loser could be the global economy
    • Deadly crossing: Death toll rises among those desperate for American Dream
    • Stay informed: Sign up for our newsletter

    Follow World News from NBCNews.com on Twitter and Facebook

     

    Copyright 2013 Thomson Reuters. Click for restrictions.

    437 comments

    With all the money Apple has they should be finding a way to bring jobs back to the USA.

    Show more
    Explore related topics: insurance, health, worker, apple, featured, brain-damaged, foxconn

Browse

  • featured,
  • world-news,
  • syria,
  • europe,
  • china,
  • afghanistan,
  • world,
  • middle-east,
  • israel,
  • pakistan,
  • egypt,
  • iran,
  • updated,
  • russia,
  • uk,
  • north-korea,
  • africa,
  • london,
  • military,
  • assad,
  • france,
  • protest,
  • environment,
  • al-qaida,
  • britain,
  • taliban,
  • italy,
  • nuclear,
  • terrorism,
  • india,
  • asia,
  • germany,
  • japan,
  • vatican,
  • economy,
  • human-rights,
  • crime,
  • south-africa,
  • mexico,
  • pope
Also
Advertise | AdChoices

Archives

  • 2013
    • May (192)
    • April (275)
    • March (432)
    • February (332)
    • January (323)
  • 2012
    • December (332)
    • November (332)
    • October (313)
    • September (360)
    • August (362)
    • July (310)
    • June (351)
    • May (427)
    • April (404)
    • March (427)
    • February (347)
    • January (284)
  • 2011
    • December (357)
    • November (3)

Most Commented

  • 'Leave our lands': Man knifed to death in suspected London terror attack (1238)
  • UK mom calms man with blood-soaked knife after suspected deadly terror attack (999)
  • Sweden riots: Cops seek reinforcements, US citizens warned (1158)
  • Slain London soldier was 'loving father' who served in Afghanistan (781)
  • Sweden stunned by third night of rioting (632)
  • Wife of slain British soldier says she thought he was 'safe' back in UK (530)
  • North Korea fires more missiles, condemns US and South for 'war measures' (513)

Other blogs

  • The Body Odd
  • Cosmic Log
  • Red Tape Chronicles
  • PhotoBlog
  • US News
  • Open Channel

NBCNews.com top stories

3147,10
© 2013 NBCNews.com
  • World news on NBCNews.com
  • About us
  • Contact
  • Help
  • Site map
  • Careers
  • Closed captioning
  • Terms & Conditions
  • Privacy policy
  • Advertise