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China suspends hazy-weather insurance
Publication Date : 27-03-2014
The China Insurance Regulatory Commission called for an end to haze-related products from the country's two biggest insurers, a week after they were introduced to the market.
PICC Property and Casualty Co Ltd began to sell haze-related insurance on March 17; the first batch was available only in Beijing with a limited number of 3,000 policies.
A day later, Ping An Insurance (Group) Co of China Ltd announced the introduction of similar products, covering seven cities, including Beijing, Shanghai and Guangzhou.
The premium for PICC's products ranged from 78 yuan ($12) to 154 yuan, with an insurance period of a year.
Ping An Insurance partnered with Ctrip.com International Ltd, China's largest online travel agency, to sell its air quality-related products to visitors and residents of those cities. Travelers who booked tours via Ctrip of between three and seven days can buy the products online.
During the insurance period, as long as the tourists spend at least two days in the designated city during hazy days, they will be allowed to file claims. The premium is 10 yuan or 15 yuan each, and the daily compensation limit is 50 yuan per person. Standards for compensation vary across cities.
According to the Nanfang Metropolis Daily, PICC has dropped its haze-related insurance product, while Ping An said that they have suspended their sale and promotion.
Both insurers declined to give reasons for the cessation, but confirmed clients with these products are entitled to settlement of insurance claims once conditions are met.