"Smog insurance" hits the market in China

Chinese online travel agent Ctrip.com International (CTRP.NASDAQ) and state-owned Ping An Insurance (SHA:601318, HKG:2318) have partnered up to offer “smog insurance” to people in seven polluted cities including Beijing, Financial Times reported. The scheme pays out when the air quality index, or AQI, exceeds set levels for two days in a row. A week of the index being over 300, a level deemed hazardous at prolonged exposure, yields the policy holder a free lung check while those who need hospitalization because of it would receive US$240 (RMB 1,500).