India-Pakistan conflict: Your insurance policy may not cover 'act of war'

Standard life or term insurance policies typically exclude deaths caused by war or war-like operations

Does your life or term insurance policy cover claims arising from an 'act of war'? With tensions between India and Pakistan on the rise, now may be a good time to review your insurance documents and reassess whether your financial protections are still adequate.

 

"In India, standard life and term insurance policies issued by life insurance companies do not typically exclude death due to war or war-like operations as a general exclusion. The only standard exclusion across all life insurance policies is death by suicide within the first year of the policy.

 

However, insurers do maintain internal risk management protocols that identify certain geographies as high-risk or conflict-prone. If a policyholder travels to, resides in, or dies in these high-risk locations, the claim may be denied based on internal underwriting conditions, even if such exclusions are not explicitly stated in the policy wording. Currently, this list comprises approximately 13 to 20 locations globally, and includes countries or regions experiencing severe political instability or active conflict," Narendra Bharindwal, president of the Insurance Brokers Association of India (IBAI).

 

The war exclusion clause

 

Many policies carry a war exclusion clause that disallows claims related to:

— War, whether declared or undeclared

— Invasion or act of foreign enemy

— Hostilities, civil war or rebellion

— Insurrection or any similar events

 

This means that even if the policy is active and all premiums are paid, a death resulting from these causes may not be covered.

 

Sandeep Katiyar, co-founder and CFO of Finhaat, explained further. “Insurers typically have war exclusion clauses baked into the terms,” he said.

 

According to him, claims may be rejected if death results from:

— Participation in war or war-like operations

— Terrorist activities

— Acts of foreign enemies or invasions

— Being in a known conflict zone, even if not directly involved

 

However, he added, “If an Indian expat living in the Middle East dies of a heart attack, and there’s no link to the ongoing conflict, the claim can still be honoured — provided there are no geographical exclusions in the policy.”

 

Are there exceptions?

  

Government bodies like LIC or the Army Wing offer war-risk cover to military personnel through schemes like Armed Forces Group Insurance. Civilian policies from private insurers, on the other hand, usually stay away from war-related coverage.

 

Katiyar said some corporate policies — especially in high-risk sectors like oil and gas, media, or diplomacy — may be customised to include group accident or life cover with such provisions.

 

High-risk international travel policies from general insurers such as Tata AIG or ICICI Lombard may include terrorism cover, but under health or personal accident categories — not life insurance.

 

What policyholders should check

 

Katiyar listed a few things individuals should watch for in their policy documents:

— Read all exclusions carefully, especially those mentioning war, terrorism, or high-risk jobs

— Check for optional add-ons like accidental death or terrorism cover

— Review territorial limits — some policies exclude coverage outside India

— For NRIs, confirm whether being in a high-risk area affects claim eligibility

 

“If you see terms like ‘acts of war’, ‘civil commotion’ or ‘terrorism’ in the exclusion section, it’s a red flag,” he said. “Clarify with your insurer.”

 

He added that policyholders living or working in high-risk zones should consider:

— Comprehensive international life insurance that includes conflict zones

— AD&D (Accidental Death and Dismemberment) riders with terrorism cover

— Group insurance negotiated by employers with explicit war-risk inclusions

— Global insurers who state inclusion of conflict zones, subject to certain conditions

 

“Most importantly, always declare your location and job profile truthfully. If you leave that out, the insurer might reject the claim later — even if the death wasn’t war-related,” said Katiyar.