China smog insurance cancelled

A week after smog insurance policies were launched in China, regulators have ordered companies to stop selling them. The China Daily reported on Thursday (march 27th) that the two insurance companies that were offering smog cover for residents and those travelling to the country have been ordered to stop offering the policies.

Smog insurance was offered starting last week in order to provide remuneration to those that are affected by the poor air quality throughout key areas of China. As the air pollution crisis continues to remain centre stage, concerns for the health of citizens and travellers have continuously been raised, as well as fears regarding the impact that the country is having upon the wider environment. 

The insurance was designed to provide money for those that are subjected to several days of high air pollution. Those that are in areas that experience poor air quality for several days would have been entitled to a free lung check, while extended periods would have resulted in a trip to the island of Hainan for some 'fresh air'.

It has not been revealed why China's insurance watchdog has ordered companies to cease in their selling of smog insurance policies. However, Ping An Insurance Group and People's Insurance Group of China (PICC) have both stopped offering insurance for poor air quality. According to China Daily, both companies have agreed to honour the policies that have already been sold.

Last week PICC was offering residents in Beijing insurance against air pollution-related health risks, saying that those that were hospitalised due to the low air quality would receive 1,500 yuan (£145) in compensation. If Beijing's official smog index stayed at over 300 for for five days in a row, the company also promised to pay out 300 yuan.

Insurance was being offered to travellers by Ping An, which partnered with an online travel agent, to protect against smog. Travellers were promised up to 50 yuan a day of compensation if they were subjected to smog for at least two days while visiting one of the nation's cities.