In today’s uncertain world, the risk of war or terrorist attacks—though rare—cannot be ignored completely. While these events are unfortunate and unpredictable, they do pose a real threat to life and property. For individuals and families seeking comprehensive protection, the big question is: Are there insurance plans in India that cover war and terrorism? The answer is yes—but with certain caveats.
In this article, we’ll break down which insurance plans provide such coverage, how they work, and what you should keep in mind while choosing one.
Understanding The Basics: Standard Exclusions
Before diving into which policies offer protection, it’s important to understand a basic fact: most standard insurance policies in India exclude war and terrorism by default.
Whether it’s a life insurance policy, health insurance, or property insurance, these are typically excluded under the “standard exclusions” clause. Insurers often consider war and terrorism as catastrophic risks that are difficult to assess and cover under normal premiums.
But the good news is—many insurers offer the option to include terrorism coverage through an add-on or rider, and there are specific policies that are designed with this kind of coverage in mind.
Life Insurance: Limited protection
In general, life insurance policies in India do cover death due to terrorist attacks, unless specifically excluded. For instance, if a person dies in a bomb blast or during a terrorist incident, the nominee is entitled to receive the sum assured.
However, death due to war or military operations is almost always excluded unless the person is part of the armed forces and is covered under special government-backed schemes like the Army Group Insurance Fund (AGIF) or Paramilitary Welfare Schemes.
If you’re a civilian, don’t expect standard life insurance to cover war-related deaths—but terrorism is usually included.
Health Insurance: Terrorism may be Covered, War is Not
When it comes to health insurance, many comprehensive policies do provide coverage for injuries due to terrorist attacks, provided the insured survives the event and requires hospitalization.
For example, leading insurers like:
- HDFC ERGO
- Tata AIG
- ICICI Lombard
- Niva Bupa
have health plans that cover hospitalization and treatment costs arising from injuries in terrorist acts. However, injuries caused during acts of war or while participating in war-like operations are generally excluded.
So if you’re looking for health protection against terrorism-related injuries, look for a plan that explicitly includes such clauses—or ask the insurer directly.
Property Insurance: Add on For Terrorism
If you own a house or commercial property, you can opt for a Terrorism Cover Add-on with your fire and property insurance policies.
The General Insurance Corporation of India (GIC Re) manages the Indian Market Terrorism Risk Insurance Pool (IMTRIP). This pool allows insurers in India to offer terrorism coverage at standardized rates. Most property insurance plans offer this as an optional add-on.
For example, if you own a business in a high-risk area, it’s wise to include terrorism insurance to cover potential damage due to bomb blasts or similar events.
Here are some insurers offering this:
- New India Assurance
- Bajaj Allianz
- SBI General Insurance
- Tata AIG
Make sure to specifically ask for the terrorism add-on while buying or renewing your property insurance.
Travel Insurance: War and Terrorism Mostly Excluded
Most travel insurance plans exclude both war and terrorism-related incidents. However, some premium international travel plans may offer limited coverage for medical expenses arising out of terrorist attacks, especially for travelers heading to high-risk areas.
Still, if you’re traveling to countries with ongoing conflict, standard travel insurance is unlikely to offer any coverage. In such cases, you may need to explore specialty insurance from international providers like Lloyd’s of London or other global insurers.
Special Coverage for Armed Forces and Government Personnel
Personnel working in the Indian Army, Navy, Air Force, or Paramilitary forces are covered under dedicated group insurance schemes, which typically include war and terrorism coverage. These policies are not open to the general public but are managed through government or defense institutions.
Final Thoughts
If you’re concerned about war or terrorism risks, don’t just buy an insurance policy blindly. Here’s what you should do:
- Ask your insurer directly about coverage for terrorism and war.
- Look for policies that allow riders or add-ons for terrorism.
- Read the fine print carefully, especially the exclusion clauses.
- If you own property or run a business in sensitive areas, get terrorism coverage through property insurance.
- For life and health insurance, check claim history and clauses related to terrorism.
While we all hope never to face such tragic situations, having the right coverage can offer peace of mind in turbulent times.
