JAKARTA, Indonesia--Indonesia has located the tail of AirAsia Flight 8501 in the Java Sea, the country's search-and-rescue agency said Wednesday.

Agency chief Bambang Soelistyo said that his team has visual confirmation of the tail on the seafloor. He said divers are preparing to inspect the wreckage. He declined to say whether searchers had detected pings coming from the plane's "black box" flight data and cockpit audio recorders.

Flight 8501, an Airbus A320, crashed into the ocean Dec. 28 with 162 people aboard. Mr. Soelistyo said search teams had recovered one more body, bringing the total to 40.

Meanwhile, AirAsia Indonesia Chief Executive Sunu Widyatmoko said his company will pay victims" families nearly $100,000 for each of the 155 passengers on board Flight 8501. The payout matches the amount requested a day earlier by the Indonesian government, which called on insurers to begin processing claims before official pronouncements of death or the completion of an investigation into the crash.

Some families had already been offered an initial payment of almost $24,000, according to a document seen by The Wall Street Journal.

German insurance giant Allianz SE said last week that a unit that acted as lead reinsurer for two lost Malaysia Airlines flights this year is also the underwriter for AirAsia.

Anita Rachman contributed to this article.

Write to Ben Otto at ben.otto@wsj.com

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