Take cover: Check details, seek written confirmation of terrorism insurance

Terrorism coverage under term, health, and home policies varies across insurers and products, may require rider, and could come with loadings for high-risk occupations and regions

The recent blast near the Red Fort in Delhi has highlighted the need for insurance buyers to understand whether their term, health, and home insurance policies cover terrorism risk. Buyers should not take coverage for granted and instead verify policy wording.

 

Term insurance

 

Most term policies cover death due to terrorism. “Exclusions apply only in exceptional cases, such as death occurring due to active participation in war, rebellion, extremist activity, or illegal acts — not for innocent civilians caught in an attack,” says Bhavna Verma, chief and appointed actuary, IndiaFirst Life Insurance.

 

Pradeep Funde, senior vice-president, Anand Rathi Insurance Broking,