Ping An Insurance Group Co has paired with Ctrip.com International to offer visitors going to Beijing and six other cities in China insurance cover against smog, Bloomberg News reported.
The six other cities where the smog insurance can be availed of are Xi'an, Harbin, Chengdu, Guangzhou, Shijiazhuang and Shanghai. Aside from tourists, the second largest insurance firm in China told Bloomberg News through email that the smog insurance will also be available to the residents of the covered cities.
Ping An said the insurance cover can be availed of when travelers book their trip on Ctrip.com. At a cost of CNY 10 for seven days of coverage, those who will be going to Beijing will be entitled to a CNY 50 or $8 daily payout if the air quality index goes above 200 for three days in a row. Other standards will also be followed in other cities included in the coverage. In China, air quality index level of 200 is considered as "medium pollution," the report said.
Chinese authorities have said that smog is becoming a serious problem in the country, with Premier Li Keqiang saying that it will combat pollution with the same fervor it has exhibited in its battle against poverty. Smog insurance is seen as an effort to earn from the problem China is facing with smog, the report said.
However, Core Pacific-Yamaichi Analyst Olive Xia told Bloomberg News, "This may mostly play a marketing role as the compensation is relatively low. It can't fully compensate losses."
In addition to smog insurance, Ping An also launched another first in China-a health insurance that covers diseases like lung cancer and particular respiratory diseases which are linked to smog, the report said.
The Ministry of Environmental Protection of China said in a statement that Beijing made it to the top 10 of China's most polluted cities last month. Together with Hebei and Tianjin, Beijing did not meet government standards on air quality on 68.5% of the days in February, the report said.
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