War & Terror: Does Your Insurance Cover You? What Indians Need To Know Now

Traditionally, Indian insurance policies — particularly life and health — excluded any claims arising from “war, warlike operations, rebellion, or civil unrest.”

The Indian insurance landscape is no longer rigidly exclusionary when it comes to war and terrorism.

Source : Freepik

By Rakesh Goyal

With rising tensions along India’s borders and increasing global conflict, insurance is no longer just a tool for medical bills or asset protection. It’s a form of geopolitical risk management. Yet, for most Indian policyholders, the question remains unanswered: Will my insurance cover me if a war or terror event strikes?

Contrary to earlier belief, not all policies exclude war and terrorism by default. As insurers respond to shifting realities, a clearer picture is emerging — one that demands more attention than ever before.

Traditionally, Indian insurance policies — particularly life and health — excluded any claims arising from “war, warlike operations, rebellion, or civil unrest.” But recent industry disclosures reveal this isn’t a blanket rule anymore.

Several life insurers in their standard term insurance policies do cover death caused by war or terrorism. This means that for most civilians, even if death results from a terrorist attack or war-like incident, their nominee is eligible for the sum assured.

In the health insurance segment, the outlook is also shifting. Earlier, injuries sustained in acts of terror or unrest were a grey area. Today, most individual retail health policies offered by major Indian insurers do provide hospitalisation coverage if the insured is an innocent victim of a terror event.

However, the exception arises when the individual is participating in the unrest, or if the incident is classified under exclusions such as “nuclear, biological, or chemical warfare.”

For now, injuries due to terror attacks, bomb blasts, or riots in peacetime India are largely covered under cashless and reimbursement claims, subject to policy limits.

Travel Insurance Remains Conservative

While domestic policies are evolving, travel insurance remains conservative. If you're travelling abroad and enter a region embroiled in declared war or military conflict, your insurer will likely deny claims for any related losses, including medical emergencies or cancellations.

That said, some global insurers now offer “war risk” extensions, often available at a higher premium for travellers heading to conflict-prone regions. These policies can cover evacuation, hospitalisation, and even repatriation under extreme scenarios.

Policyholders should review their policies carefully and shouldn’t just go by assumptions. Look for war and terrorism clauses in your life, health, and travel plans. Ask direct questions to the insurers, such as “Is death due to cross-border conflict covered?” “Will hospitalisation from a bomb blast be reimbursed?” If your property insurance lacks terrorism cover, adding it costs little and strengthens your protection.

Stay informed because, as the industry evolves, new products may offer broader protections, including potential innovations in parametric insurance or catastrophe bonds.

Informed, Proactive, Transparent

The Indian insurance landscape is no longer rigidly exclusionary when it comes to war and terrorism. While complete coverage for all conflict-related scenarios remains elusive, there’s now far more inclusion than exclusion, especially for ordinary citizens.

The onus, however, lies on the policyholder to stay informed, proactive, and transparent. Because in uncertain times, clarity in your insurance contract can mean the difference between financial resilience and emotional devastation.

(The author is Director, Probus)

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