Germany's Allianz and Australian group QBE bear the bulk of theinsurance liability from this week's fatal train crash in northwestSpain, according to sources at the companies.

While Allianz's Spanish subsidiary covers a compulsory personalaccident policy for Spain's state-owned rail network Renfe, QBEcovers injury to third parties and rail infrastructure, if thetrain operator is found to bear responsibility, the sourcessaid.

The train driver was under police guard in hospital on Fridayfollowing the crash, which an official source with knowledge of theinvestigation said was caused by excessive speed.

A judge in Santiago de Compostela, capital of the northernSpanish region of Galicia, was assigned to investigate theaccident. The judge ordered police to question the train's driver,52-year-old Francisco Jose Garzon.

The crash killed 78 people, and authorities in Galicia said 95people were still in hospital, 32 of them, including four children,in a serious condition.

The source at QBE said the firm has not yet produced anestimated insured loss from the accident as the cause of the crashremains unclear.

According to previous statements, QBE says its exposure to anysingle public event is limited to $50 million under its reinsurancearrangements, whereby insurers sell risk to other parties to hedgetheir own liability.

A QBE spokesman in Sydney said he could not immediately commenton the matter.

Allianz's Spanish unit Allianz Seguros released a statement onThursday confirming it underwrote the Renfe policy and that it hadimplemented an action plan and sent a team of experts to theaccident site.

While the insured loss for physical damage to infrastructure andproperty is likely to be resolved quickly, compensation claims byvictims and their families could take years due to lengthy legalprocesses.

Local businesses may also claim compensation for loss of revenuecaused by disruption to the rail network.

Payouts will depend on liabilities, whether the accident was thefault of the driver or whether there is a case for corporatenegligence on the basis the train should have had fail-safemechanisms in place to limit speed.