Source: CCTV.com

08-13-2008 15:44

A trial issue of rural, small premium- low benefit insurance programs goes on the market in China. The program, went into operation Tuesday in nine provinces and municipalities. The new instruments will go on sale in Sichuan and Shanxi provinces Friday.

A trial issue of rural, small premium- low benefit insurance programs goes on the market in China.

China Life issued nine products directed at rural areas. Seven of the new policies cover accident insurance. There are also 2 life insurance programs. As one example, a farmer will be able to buy accident insurance, offering compensation up to 10-thousand yuan.... for a low premium of 15 yuan.

Su hengxuan said, "Compared to the usual accident insurance rate, the price is 20 to 30 percent lower."

The China Insurance Regulatory Commission says the low coverage rural insurance is an effective way to provide basic social security for rural population in poverty.

Fang li said, " The new products are linked to the usual rural insurance but they are still quite different. The major difference is the new issues offer low premium and low compensation. They target only the low income rural population."

In addition, the low coverage rural insurance includes accident insurance which is not covered by typical rural insurance. Unlicensed drivers --- common in the countryside -- will not be disqualified from compensation.

 

Editor:Zhao Shanchao