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All You Need To Know About Terrorism Insurance
[Posted by: InsuringIndia Blog on 12-Apr-2016]
In today's world, banking upon traditional insurance plans like health, property and life are not enough to ensure that you have a security cover. Considering that terrorism has now become more of a domestic reality instead of a global threat, it makes sense to secure yourself and your assets -- home and business against acts of terror. Though the insurance sector in India is relatively new to this issue, the good news is that the policy holder is at an advantage. 
In April 2002, The Indian Market Terrorism Risk Pool was formed following an initiative by non-life insurance firms in India. This was done after terrorism cover was withdrawn by international reinsurers in the aftermath of the 9/11 attack. Now, all non-life insurance companies within India and General Insurance Corporation of India (GIC Re) are members of the pool.
This type of cover can be taken by both individuals and business owners who may suffer liabilities and damages owing to acts of terror. Generally, a terrorism cover is provided by insurance companies as an add-on cover with a personal accident insurance policy or even a property insurance policy. 
This is a bit of a grey area in the current scenario, because it's very difficult to predict where and when an act of terror may manifest. So rather than a full blown policy for an individual as a standalone cover, it is usually provided as an add-on. 
However, the picture is a bit different to India Inc as compared to small businesses and medium sized businesses. In the latter segment, a lot of ground still needs to be covered. 
Generally terrorism cover is provided as add-on cover. This means you have to pay an additional premium. 
It can also include material damage and business interruption depending on the type of policy you opt for. 
Evaluation of loss may vary from one company to another. 
Also risk factors are taken into account if it is bought for safeguarding business.
It may be difficult for you to purchase a standalone policy for terrorism insurance because most companies consider it a major risk, considering the magnitude of risk and loss involved. In case you are travelling within India or abroad, do consider opting for this insurance because an act of terrorism is unpredictable. It may also be worthwhile to check whether you are covered under this even if you’re buying a home, health or life policy.
It is always better that this policy is bought via an online aggregator instead of an insurance agent. This is because online platform gives you a plethora of choices from varied insurance companies. It also allows you to compare, the advantages, premium rates, weigh the negatives and disadvantages and review sops. Thus all these factors help you in making a more informed choice which is best suited to your needs.

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