Companies ordered to halt smog insurance
Print Edition
SALES of smog insurance have been halted after a watchdog said they were “publicity stunts” in violation of regulations.
The suspensions came just a week after Ping An Insurance Co and China Life Insurance Co announced schemes to compensate policy-holders for smog-induced illness or smog-ruined holidays.
China Life policies were being sold in Beijing while Ping An had offered the products in seven cities including Shanghai, Beijing and Guangzhou.
Some policies offered compensation for respiratory illness and lung cancer, while others would pay out if air pollution rose above certain standards in designated cities.
China Life and Ping An yesterday both confirmed that they had suspended sales of such policies as ordered by the China Insurance Regulatory Commission, but said those already sold would be honored.
“You never know when the pollution will come and it is nice to get some compensation at a price of just 10 yuan,” said a Shanghai resident surnamed Ding who had signed up for a Ping An policy. “But again, getting paid will not relieve anybody from air pollution.”
She will be paid a minimum 150 yuan if Shanghai’s Air Quality Index rises above 100 for three days or more in the week from April 1.
‘More like a lottery’
Air quality in northern China, including Beijing, has deteriorated sharply since Sunday, and the smog has extended to eastern and central China regions, including Shandong and Hubei provinces, which saw the partial closure of some expressways over the past two days.
The commission said the products were more like lotteries than insurance, and the companies’ advertising had been misleading.
“The products are against the essence of insurance, which is to protect people from potential risks. Companies are encouraged to innovate but they cannot make public stunts to win the market,” Xinhua news agency quoted an unidentified commission official as saying.
“The products actually sold on the market are different from what companies registered with us in terms of policies and prices.”
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