A company in south China's Guangdong Province on Monday launched an insurance policy that covers loss or damage as a result of street robberies or muggings.

The Guangdong branch of Yong An Insurance Co. Ltd. introduced the scheme as an addition to its existing family property cover.

"It is the first insurance policy of its kind in China," Liu Haiyan, a manager with the company, told China Daily yesterday.

Official statistics show that there were 127,543 snatch thefts and robbery cases in Guangdong last year, representing only a slight decrease from 2004.

Premiums for the cover cost 50 yuan (US$6.17) for a year, but an existing family property insurance policy, which costs between 50 and 500 yuan annually, is a prerequisite.

The family property insurance includes property cover, life insurance and third party liability insurance.

The snatch theft and robbery policy protects jewelry, mobile phones and laptop computers.

As long as one person has the insurance policy, all members of his or her family are protected against loss or damage as a result of muggings, Liu said.

Compensation for a piece of jewelry or a mobile phone is up to 1,000 yuan (US$123), and 2,000 yuan (US$250) for a laptop computer.
 
In order to control business risks, Yong An Insurance Co has set an annual ceiling for payouts to 30,000 yuan (US$3,703) per family.

To ensure all cases are genuine, the company requires holders of the new policy to report their losses to the police and have their cases put on police files before their claim can be processed.

Wu Chunlin, 26, a company clerk in Guangzhou, capital of Guangdong, who once had a mobile phone stolen in a robbery, said he would not buy the insurance cover at the moment.

"The compensation you would get if you were robbed is lower than I would expect," he said. He added that he was put off by also having to take out family property insurance to obtain the cover.

Another man, surnamed Liu, said he was pleased with the new product.

"The premium is acceptable for people on the average wage," he said.

(China Daily February 14, 2006)