Terror is an unpredictable threat which has the deadly potential to hurt anyone unannounced. Like many other countries of the world, India has also witnessed terror attacks of big magnitudes. The 26/11 Mumbai attack is one such example of an unprecedented attack. It took a heavy toll on life and property affecting families and businesses. The trauma of the attack continues to haunt not just those who were directly affected but all others who saw the horrifying images on their television sets. As the saying goes, 'terror has no religion, no name and no face', it’s a global menace which makes no difference between a developed, developing or underdeveloped nation. To ensure you can withstand such an unforeseen incident, you must be properly insured to avoid a financial and emotional setback.
Most insurance companies have specific clauses of risk cover for acts of terror in their policy documents. One has to read it carefully to know whether it covers you in such a situation.
Let’s check out how insurance policies can still play a big role under a loss due to terror act.
This is one of the most important insurance products if you are traveling to a place which you are not well acquainted with, especially abroad. While buying a Travel Insurance policy you must check the policy clause and make sure that terror related perils are covered in the product. While in normal or a terror related emergency travel insurance covers the risk, such as baggage loss, flight delay, flight cancellation, trip cancellation, medical expenses, evacuation, etc. but the extent of cover is subject to inclusions and exclusions mentioned in the policy document. So, you must read the fine print in the policy document before you buy it. Some policy specifically mentions that it does not cover risks due to terror adversities. If you visit a country which is high on terror risk, then the insurance company may deny covering the losses in such cases.
While buying a travel insurance you may need to pay slightly higher premium if you chose the policy that covers the terror perils, but it can ensure a big relief when you travel long distance.
When a person is injured due to a terror attack, then such medical emergencies are covered by most of the health policies. Such injuries are considered as accidental injury and normally you won’t find difficulty in getting the financial support from the Health Insurance company. Some premium health policies also provide safe evacuation facility to the customers in case of an emergency like situation in a country. Normally health policies cover treatment cost within India, but there are some high-end policies which also covers treatment costs in the overseas location. You must check the policy document to find out restrictions related to overseas treatment.
Almost every Life Insurance policy covers the death risk caused due to terror incident. One should keep in mind is that insurance policy specifically mentions that the insured person should not intentionally put his/her life in danger. If a person knows that there is a terror threat at some place and he/she endanger life by visiting such place and dies, then the insurance company may deny giving the insurance money.
Though Home Insurance covers the damage caused to your home and its contents in normal cases if it’s mentioned in your policy document, but in case of terror related damage the insurance company may deny covering such losses if it has enlisted terror perils in the exclusion list. You must read the fine prints of policy document to check the list of inclusions and exclusions. Some insurance companies provide risk cover for terror losses, but it may charge a higher premium for it. Any damage to common areas such as passage, lift etc. may still not be covered in home insurance.
Things To Keep In Mind
You must take care of yourself and do not put your life at risk to stay insured as per insurance clause during a terror attack. Some important insurance that you must take to mitigate the terror risk includes health policy, life policy, accidental risk cover and travel insurance because the threat level increases when you are away from home.
(The author is CEO of BankBazaar)