Society

Compensation fund for tainted milk victims run smoothly

(Xinhua)
Updated: 2011-06-08 22:26

BEIJING - The fund established in 2009 to compensate victims of China's tainted-milk scandal has been run efficiently, according to a statement posted on the website of the China Dairy Industry Association.

Sanlu Group, which was at the center of the scandal, and other dairy companies set up a 1.11-billion-yuan ($170 million) compensation fund after it was revealed that the companies added melamine to baby formula to make the milk's protein level appear higher.

The association allocated 910 million yuan from the 1.11-billion-yuan fund to pay the medical bills of sickened children and offer them one-off compensation, the statement said.

By the end of last year, families of 271,869 children who were sickened after drinking the melamine-tainted products had accepted one-off compensation. Only a few affected families have yet to be reached mainly because of incorrect or false registration of names and addresses.

The remaining 200 million yuan is to be used as a reserve fund for possible ensuing medical treatment until the victims reach the age of 18.

The reserve fund, which was set up in July 2009, is managed by the China Life Insurance Co. due to its extended service network, which can facilitate the reimbursement of families with sickened children for medical expenses. By the end of April, 10.48 million yuan of the reserve fund had been used, according to the statement.