Life Insurance

4 Insurance Covers To Protect You During A Terrorist Activity

Nov 15, 2021

Even though there is no specific definition to explain an act of terrorism that has been universally agreed upon, still the general factors which have been the base of explanation provided across the globe are that terrorism is an act of violence or a series of such acts committed by any individual or organisation which spreads terror and harm affecting a good number of masses, even taking lives, in order to establish individual, religious, social, ideological, political, and racial objective or enforce any such point of view. This act not only jeopardises life and property it is also a threat to humanity. We are all aware of the violent effects and uncertainty of a terrorist attack, thus it is a better option to keep ourselves secured against the financial loss that can be caused due to such terrorist vandalism. 

Such violent activities have increased over the last few decades and thus coverage against such ruthlessness has also become a necessity. We know that the loss of lives and the waste of resources cot be replenished but if the financial loss can be handled then that too would provide great relief to you. And that is the reason you should protect yourself against such uncertainties and avail the policies against terrorist activity that the insurance companies are providing. 

A very common example that can be put forward to speak of the importance of insurance against terrorist activity is the Taj Mahal Palace Hotel, Mumbai after the attack on 26th November 2008. The hotel could rebuild itself back to its glory post the settlement of the claim. 

 

What is an Insurance against terrorism?

There are mainly 4 insurance covers that are you can avail to protect the financial loss in case you face any act of terrorism. Following are the 4 types of policies

Life Insurance –

Life insurance coverage is taken to protect your family against the financial loss that your family might face in case any unprecedented occurrence happens to you and there is a loss of life. Every entity has some liability in terms of the loan also and that too needs to be covered. If you are thus having some loan then you need to keep in mind that the loan repayment needs to be done from the insurance amount that your nominee would get and thus it is advisable to keep the pending loan amount as an add on the amount to the amount that you think your nominee would require in case of any adversity. Thus it should be a necessary question you need to ask your insurer whether the policy you are taking would cover you in case of death in a terrorist attack. Insurance companies like ICICI Prudential Life Insurance Company and Max New York Life Insurance Company would provide you with coverage of life that would protect you even in a terrorist attack.

Claim Procedure -  As loss of life in a terrorist attack happens suddenly thus it is advisable to keep your nominee informed about the policy, so that in case there is any such need then your nominee would know which company to approach and then follow the procedure to acquire a hassle-free claim.

 

Personal Accident Insurance Cover-

Personal accidental coverage is taken by a lot of customers as an add-on rider to the life insurance policy that they buy. But such personal accidental insurance that provides coverage against all forms of adversities that you may face due to an accident such as temporary or permanent disability, physical injury, or even death is separately available. These individual policies are way cheaper than the rider provided by the life insurance policy. Plus when you take such separate life and accidental policy then in case of a claim on the accidental insurance the life insurance policy is not affected, else when a claim for an accidental benefit arises then the life coverage in the policy automatically terminates. The Personal Accidental Insurance provides coverage against any disability permanent or temporary or injury or loss of life due to an accident including terrorist attacks.  

Claim Procedure- If there is a loss of life then the Personal Accidental Cover can be claimed by your nominee who may then submit the required documents like his/her personal KYC details, the death certificate (mentioning accident to be the reason for the same) and other relevant proofs of the accident to claim the death benefit. In case there is any temporary or permanent disability then relevant certificates from doctors are needed to be submitted the decision about the claim is taken accordingly.

 

Home Insurance – 

When you take a home insurance policy then your house and the accessories that are mentioned in the policy is covered under the same. This policy protects your home against earthquakes, floods, lightning, and other natural disasters as mentioned in the policy. There are few companies that issue policies that would provide coverage not only against disasters but also against terrorist activities. This extra coverage comes at the cost of an add-on premium. One such company that provides Home Insurance where you can avail of coverage for your home and its contents against terrorist activities is Bharti AXA Insurance.  

Claim Procedure – When you need to put forward a claim then you must submit all documents along with a duly filled claim form as would be required by the insurer. Post the same an evaluator would come from the company to survey the sight and would assess the extent of loss and the amount of claim that should be processed. The insurance company would process the claim as per the report of the evaluator.

 

Car Insurance –

A third party car insurance is a mandate by the government when you buy a car. Without it, you are not permitted to bring the car out on road and in case the insurance is not taken then there can be a heavy penalty charged by the traffic police department of your city. However, it is a better option to buy comprehensive insurance that not only covers third-party damage but also provides proper coverage to incur a financial loss in case of any damage happening to the car. These policies not only cover your car against damage and accident but also against any form of a terrorist attack. 

Claim Procedure-  In case any such claim needs to be registered with the insurer, the insurance company needs to be informed and all documents need to be submitted. And post that the company would decide on the extent of loss and settle the claim accordingly.

These four types of insurance that can protect you against any sort of terrorist activity should be included in your kitty of insurance. The number of terrorist attacks is increasing day by day and more and more lives are being exposed to the atrocity and there is great amount of loss of property is also happens, and gradually the importance of insurance to cover oneself against terrorist activity is also becoming a necessity. Thus it is advisable to include the insurance against a terrorist activity as a requirement list of insurances. 

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