Families whose children have contracted kidney stones as a result of drinking tainted Sanlu milk powder will begin to benefit from the CNY1.1 billion to be payed by Sanlu Group and 21 other companies involved in the scandal.

Of the CNY1.1 billion, over CNY900 million will be paid in cash to those unfortunate families and the remaining CNY200 million will be used to set up a medical compensation fund.

According to an insider, the medical fund will be managed by China Life Insurance Group, one of the major insurance service providers in China, and the insurance company has assigned its Beijing branch the responsibility for disbursing the funds. The source says that the medical compensation fund will be available in January 2009 when children with five kinds of specified diseases due to the consumption of Sanlu milk products can expect compensation for their medical treatment, and this compensation will continue until they are 18 years old.

Of the 22 responsible companies, Sanlu Group is said to have borrowed CNY902 million and given it to the Dairy Association of China to cover the medical expense of young patients.

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