Terrorism Insurance: Does your Insurance Policy Cover Terrorist Insurance?

Terrorism is the key word now-a-days. With terrorst striking almost all parts of the world, be it New York, London, Madrid, Mumbai or anywhere on this planet, there is a big and hidden risk of you loosing your life in a terrorist strike or terrorism attack.
The million dollar question to ask yourself and your financial advisors or your insurance agent is that "Am I covered for Terrorism Insurance?".
Well, that's what is bothering the minds of millions of insurance policy holders across the globe, from USA to UK, from Spain to India, and to everywhere. The number of casualty have increased significantly due to terrorism attacks, and hence there is a need of terrorism insurance.

What is terrorism insurance?
Terrorism Insurance is the cover which you may get if you loose your life or get physically disabled in a terrorist attack. Unfortunatley, there is no clarity about whether your insurance policy covers you from such disaster.

Does my insurance policy covers Terrorism Insurance?
The answer is not clear. If your insurance policy document states that you are covered for dealth or disability due to a terror strike, then you must be covered. However, its better to confirm by calling your insurance company.
Most of the cases, your life insurance or accident insurance policy will NOT be covering your for Terrorist Insurance or Terrorism Insurance. The reason is that this term Terrorism Insurance is a relatively new concept and even the insurance companies are not aware about this kind of coverage. Forget about the common man like you and me who cant understand the nitty-gritties of the policies.

How about Personal Accident, Fire Accidents Auto Insurance, Car insurance and Shopkeeper's policy?
Say you are a shop-keeper and your shop is destroyed in a terrorist bomb attack. What do you do? Whether your shopkeeper insurance policy is covering that damage or not? OR while riding your car, and you are affected by a terrorist bomb blast- You are injured and your car is damaged. Can your accident insurance policy cover for your hospital treatment due to terrorism and will your car insurance claim be valid for car damage?
Again, your insurance company will be the right ones to ask these questions.

Some news is that there has been a recent hike in demand from the policy buyers to know whether terorsim insurance is covered or not. In India, Some news is that Public sector Insurance companies cover it, while private sector insurance companies dont.

You may have to pay additional insurance premium to buy the terrorism insuance cover.