Terrorism has become a global menace, causing massive loss of life and property. Though you don’t know when and where you might be a victim of terrorism, there are some steps you can take in order to ensure that you get suitable compensation for loss of property.
The damage caused by terrorism to human life and property till now has been staggering. Terrorist acts can happen anywhere, as is evident in the recent attacks in the Ajmer dargah, Mumbai train blasts, and the latest bomb blasts in UP. It could very well happen in your neighborhood and damage your property. So it is better to take out a property insurance. Here we take a look at what terrorism insurance is all about.
What is terrorism insurance?
Terrorism insurance is the insurance cover available to the property owners in order to compensate them for the losses and liabilities caused by terrorist activities.
What are the premiums payable for this type of insurance?
Terrorism insurance is regarded by insurance companies as a very difficult product, since it is very difficult to predict the chances of terrorist attack taking place and the losses caused are massive. For example, the 9/11 (September 11) attacks resulted in a loss of about US$ 31.7 billion. The twin factors of unpredictability and possibility of massive losses makes it difficult to set the premiums of terrorism insurance. Hence many insurers omit terrorism insurance from casualty and property insurance and those who do, need approvals in order to give cover.
Does India have terrorism insurance?
Yes, India does have its terrorism insurance. But there is a major difference between the terrorism insurance in India and that of advanced countries like USA. In India, the terrorism insurance pool has been set up by the Indian insurance companies. A terrorism pool is a corpus of funds gathered by all insurance companies to pay for the losses resulting from terrorist activities.
What is the future of terrorism insurance?
With the growing incidences of terrorist acts in common places, it is likely this insurance will become quite popular with both businessmen as well as common man. Terrorist acts affect everybody equally. So in order to compensate for the losses, people are likely to opt for this insurance in large numbers.
Did you know about terrorism insurance? Does the country you live in have terrorism insurance? What are the premiums charged for this insurance?
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