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TEPCO to start paying compensation

July 25, 2012


Compensation to cover psychological distress, unemployment
Tepco sets date to start accepting victims' claims




Tokyo Electric Power Co. will begin accepting claims in September for lump-sum compensation for psychological distress, unemployment and damage to nonfarm businesses caused by the meltdowns at its power plant in Fukushima Prefecture, the utility said.


The announcement made Tuesday follows the government's release last week of detailed compensation standards.

Tepco will pay ¥100,000 per month to each victim for psychological suffering.

Five years' worth of compensation, or ¥6 million, will be paid to victims in the most contaminated of the three new evacuation zones around the Fukushima No. 1 nuclear plant, where residents are barred from returning for at least five years.

Residents from the less-contaminated zone, which is likely to be off limits for two years, will get ¥2.4 million each, while those from the least polluted zone, where radiation doses have fallen far enough for residents to return in the near future, will get ¥1.2 million.

The company will also pay lump-sum unemployment compensation for the period through February 2014 and compensation for businesses, excluding farms, through February 2015.

Tepco will begin accepting applications from residents for compensation to cover housing repairs Tuesday.

The utility will announce details of compensation for damage to land, buildings and household goods later.

Officials said the firm hopes to be ready by October to accept such claims, which take longer to estimate.

Victims can choose to receive compensation in a lump sum or in installments. Payments are expected to start about three weeks after the claims are submitted.

Tepco limits home repair compensation to ¥14,000 per sq. meter and ¥10 million per home.

The value of residential land in the new zones is calculated by multiplying the value assessed in fiscal 2010 for taxation purposes by 1.43.

Home values are also determined based mainly on tax assessments. But victims can also use other methods, such as the use of average prices for new homes.

Homes and land in the most contaminated zone will be fully compensated for at precrisis value by Tepco. In principle, compensation will be halved for the less contaminated zone, and cut to one-third for the least polluted zone.

For furniture and other household goods, basic compensation is set at ¥4.75 million for a family of two or larger in the most contaminated zone. To this, Tepco will add ¥600,000 per adult and ¥400,000 per child.

In the other two zones, basic compensation is set at ¥3.55 million with an additional payment of ¥450,000 per adult and ¥300,000 per child.

Tepco will pay ¥300,000 to each resident of the area previously designated as a possible evacuation zone in the event of a new emergency at the Fukushima No. 1 plant. Home repair compensation is also set at ¥300,000. The government lifted the order to prepare for possible evacuation in this area last September.

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