Earthquake insurance policy starts

Product seen as step in adopting market-driven approach to compensate for disaster losses

China on Friday launched the sale of the country's first earthquake insurance policy, seen by the industry as a step forward in adopting a market-driven approach to compensate for losses following natural disasters.

Homeowners can buy insurance policies with a maximum payout of 1 million yuan ($150,000) to cover loss and damage to residential property caused by earthquakes with a magnitude of 4.7 and above, according to the China Insurance Regulatory Commission.