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Which Insurance Covers protect you during a Terrorist Activity?

Terrorist attacks keep happening all over the world. There is no guarantee when and where it can happen. Not only these attacks claim a high magnitude of innocent lives, but they also lead to the destruction of buildings, property, and disruption of normal lives. While governments and international organizations continue to build pacts to prevent them, you should take measures to protect your own family and loved ones, if you stay in a terrorist prone zone. It is always better to get your family, business, and home, insured against terrorism.

What is Terrorism Insurance?

Terrorism Insurance, as the name suggests, is the type of life insurance that provides coverage for equipment, furnishings, inventory, property, and buildings damaged or destroyed by terrorist acts. This type of insurance protects businesses against claims in case of terrorist activities.

If you stay or work in a major metro area, you should consider buying terrorism insurance. Similarly, if you work on projects that could be potential terrorist targets for attacks, you should aim to purchase terrorism insurance policies along with your regular life insurance.

Insurance Covers to Protect you During a Terrorist Activity

Terrorism Insurance provides four types of insurance covers that can be needed in case you fall in unfortunate prey to violent terrorist activities

  • Life Insurance
  • Personal Accident Insurance

  • Home Insurance

  • Car insurance

Thus, the complete terrorist insurance policy acts as an umbrella of coverage of insurance for securing your life, home, car, and family from terrorist activities.

  • Life Insurance

    This is the regular life insurance cover that provides financial coverage for your life. In the event of the policyholder's demise, the family members or the nominated beneficiaries get the sum assured amount. An extension to the policy is the terrorism clause, according to which the insurance proceeds will be paid to the beneficiary in case of death due to terrorism, as mentioned in the policy.

  • Personal Accident Insurance

    Some insurance covers also include health and disability insurance policies. These may provide coverage for loss of life, injury, sickness, or disability to individuals in the event of a terrorist attack. On the accidental damage or disability arising out of terrorist activity, you will get the sum assured as per the provisions of the policy.

  • Home Insurance

    This home insurance cover as part of the terrorist insurance cover and includes coverage for any property damage and personal possessions in case of any terrorist activity. This insurance means that if there are any explosion, fire, and smoke, any acts of terrorism, the corresponding damage, and destruction to your house or property will be covered by the policy.

    An extension to this is the Condominium or co-op owner policies. They provide coverage for damage to personal possessions in the event of terrorist acts. Any damage to the common areas of a building like a roof, basement, elevator, etc. would only be covered if the co-op board has secured the property under commercial terrorism coverage.

  • Car Insurance

    Just like the regular motor vehicle insurance, this insurance coverage provides protection for a car that is damaged or destroyed in a terrorist attack. In this case, the policyholder also has to purchase optional comprehensive coverage. This will cover damage to your car caused by disasters other than collisions or regular road accidents.

How to File a Claim for Insurance under Terrorist Activity?

The Terrorism Insurance cover includes the four main covers for insurance coverage for life, home, personal accident, and car, or automobile. Here is how you can file a claim under terrorist activity for any of these insurances:

  • For Life Insurance

    You should make your nominees aware of your terrorism insurance policy and the policy reference number. This will be significant in the event of your unfortunate demise when the family members will require the information to file a claim. A set of documents will be required to be submitted to the insurer to settle the claim

    • Policy document
    • Proof of Identity and address proof
    • Death Certificate
  • For Personal Accident Insurance

    In case of any terrorist activity that causes death, injuries, disability, or loss/damage of body parts, this insurance will cover expenses related to the emergency and treatment. You would have to intimate the insurer on time and submit the right documents as and when asked by the insurer. These will include:

    • Proof of identity
    • Address proof
    • Policy document
    • Doctor’s certificate certifying nature and extent of disability
    • In case of death, death certificate
  • For Home Insurance

    The Home Insurance policy will protect your house and property against fire and natural calamities like earthquakes, hurricanes, floods, or cyclones. For an additional premium, it can also cover destruction due to terrorist activities. In case of destruction or damage to your home because of any terrorist activity, you need to intimate the insurance company within the stipulated period as mentioned in the policy document.

    You also need to furnish the following documents:

    • Identity and address proof
    • Policy document
    • Claim form with details of date, time, nature and extent of loss
  • For Car Insurance

    In case of any loss or damage to your car or vehicle, you can file a claim with your insurance company because of any act of terrorism. You first need to intimate the insurer of the event and then fill up and submit a claims form along with the relevant documents for the application's processing. The documents are as follows

    • Identity and address proof
    • Policy document
    • Claim form with details of date, time, nature and extent of loss  

Things to consider while buying this insurance

You have a proper terrorism insurance policy in place with an adequate safety cover for you and your family. However, in some situations, the claims may sometimes get cancelled even in cases of urgent need. You should be aware of the policy exclusions and what is not covered by your policy.

Your insurance claim may get rejected if:

  • You travel to terrorism – prone or troubled areas despite government advisory to tourists
  • You disregard curfews imposed by authorities post terror attacks and get injured or suffer death/disability

  • Illness or disability is due to any pre-existing diseases and not because of any terrorist activity 


  • Q: Does travel insurance cover terrorism?

    Ans: Most travel insurance plans have an inbuilt cover for terrorist attacks. It covers death, accident, injuries, and medical expenses due to terror attacks. This insurance cover against terrorist attacks includes any expenses related to hospitalization, emergency evacuation, trip cancellation, flight delay, or repatriation while travelling. You need to carefully go through your policy document to understand the enclosed clauses.
  • Q: What areas does Terrorism Insurance cover?

    Ans: Terrorism Insurance provides insurance coverage for houses and property, pieces of equipment, inventory, and buildings damaged or destroyed by terrorist acts. It also provides coverage for businesses against liability claims.
  • Q: Does terrorism Insurance also cover casualties due to war?

    Ans: No, there are clear-cut exclusion clauses in any terrorism insurance policy. Such as war exclusion in the insurance policy does not include coverage for acts of war, like, invasion, revolution, or any military coups. Most Insurance companies exclude coverage for war events for which they cannot afford to pay claims.
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