Smog insurance for ruined vacations hits market

Travelers who complain about dirty air may find a little comfort with the help of smog insurance. Those whose vacations are affected by heavy air pollution can obtain compensation if they purchase the insurance.

Photo taken on Jan. 14, 2014 shows Xuyi of China's Jiangxu province, enveloped in smog. [people.com.cn]

Online travel agency Ctrip.com and leading insurer Ping An started selling smog insurance on Tuesday for tourists who have concerns about dirty air.

When tourists purchase a domestic travel itinerary ranging from three to seven days through Ctrip.com, they will have the option of purchasing "smog insurance" at premiums of 10 to 15 yuan, or 1.6 to 2.4 U.S. dollars. Ctrip and Ping An have promised to give daily compensation of 50 yuan to travelers who are subjected to hazardous air.

Ctrip said many clients have showed interest in the product. The first order was placed by three Shanghai residents who plan to take a five-day trip to Beijing next month. The age of the buyers so far ranges from 15 to 78.

The compensation applies when the air quality index (AQI) of a traveler's destination city reaches a fixed level and only if the insured traveler stays there for at least two days, according to Yan Xin, public affairs manager of Ctrip.

A mobile phone App has been made available for tourists to check air quality.

The insurance currently applies to six popular tourist destinations that are prone to smog. The AQI standards vary from city to city.

In the cities of Beijing and Xi'an, the air pollution index will have to top 200 for the compensation to apply. In the northeastern city of Harbin and in Chengdu in the southwest, the index must reach 150. For Shanghai and the southern city of Guangzhou, the index has to hit 100.

"Smog has greatly affected people's lives. The idea we came up with was to compensate travelers for unpleasant trips that take place during smoggy days. Since the dirty air might ruin their mood, we're trying to give them a little comfort in a different way," said Yan.

"We're trying to raise public awareness about the worsening air quality and its comprehensive and long-term effects on human beings. We also hope to help promote a low-carbon lifestyle," said Bao Xianmei, product expert with Ping An Insurance.

Although some tourists have welcomed the fresh idea, others don't feel like it truly makes up for a poor vacation.

"I used to visit Guangzhou during periods of dense smog. The experience was really bad. The insurance is better than nothing, it can at least compensate my disappointment," said Li Ming, native of Sandong Province. The IT specialist takes about five trips each year, both at home and abroad.

Hiking in Beijing was quite "impressive" for Qiu Sainan. The native of Hebei Province once took her parents to the Fragrant Hills in Beijing on a smoggy day.

"We climbed up to the top of the hill and took pictures. But the sky was shrouded in thick smog and the pictures showed nothing but white haze," she complained.

She said she would possibly buy the insurance next time, so that she can get some extra money in her pockets if she fail to take away nice memories.

The companies providing the insurance believe the product will have a warm reception, even though some travelers say the compensation cannot make up for a ruined trip.

"The insurance has a very low premium but a high possibility of being paid out, as air quality readings in the designated cities frequently exceed the designated figures," Yan said.

The companies are planning to improve the insurance program after a trial run this month. More cities are expected to be included in the future, according to Bao.

Copies of the tourists' documentation for their trips are required when applying for the compensation. However, the compensation will be automatically paid out when the program is updated in the future.