East China city buys disaster insurance for residents

A city in China's affluent Yangtze River Delta has bought disaster insurance to cover all residents, according to local government.

The city of Ningbo paid 38 million yuan (6.2 million US dollars) to People's Insurance Company of China to buy a policy with 600 million yuan in coverage to protect Ningbo residents from losses caused by major natural disasters such as typhoons and floods.

Ningbo, located on the Zhejiang Province coast, is frequently battered by typhoons from the East China Sea. Last year, Typhoon Fitow cost Ningbo more than 33 billion yuan in losses.

According to the insurance policy, the compensation for death is up to 100,000 yuan per person. Each household will be offered up to 2,000 yuan for property damage due to disasters.

The city government has also set up a fund of five million yuan to offer additional assistance to people affected by natural disasters.