After the ceasefire, people are now looking for insurance coverage to protect their lives and property from damage caused by war and war-like situations. People want to know whether their insurance policy will protect them. Let’s know in detail…
After the terrorist attack in Pahalgam, Jammu and Kashmir on 22 April, tensions between India and Pakistan had increased. Due to which the fears of war had started deepening. After the ceasefire, people are now investigating insurance coverage to protect their lives and property from damage caused by war and war-like situations. People want to know whether their insurance policy will protect them. War or war-like situation refers to the circumstances arising from military conflict between countries, terrorist attacks, civil war, bomb blasts, missile attacks or nuclear attacks.
In case of death in war or war-like situation
In India, most term and life insurance policies usually do not include death due to war or war-like operation in the general exclusion. Varun Agarwal, Head (Term Insurance), Policybazaar.com, explains that most term life insurance policies cover death due to war or terrorist activities, as these events are not usually excluded from policy coverage.
In such a situation, insurance companies consider death due to terrorist attack or war as similar to natural or accidental death. In case of death of the policyholder in war or terrorist attack, the nominee or legal heir gets the death benefit.
An important exclusion in term insurance is that if the person commits suicide within the first year of the start of the policy, it will not be covered, while other exclusions may include death due to dangerous activities, criminal act or consumption of narcotics, depending on the insurance company.
When can a claim be rejected in term insurance?
War or war-like situations are not clearly excluded from coverage in term or life insurance policies. However, insurance companies have internal risk management protocols. Based on these, some areas are classified as high-risk areas. These are areas where there is a high possibility of conflict or unrest. If the policyholder lives in such an area or travels there, the insurance company can refuse to give a claim based on underwriting rules.
In case of injury in a war-like situation
Health insurance has become a necessity for every person in today’s time, which saves from heavy out-of-pocket expenses on treatment. In most health insurance policies, war and war-like situations are mentioned in the ‘War Exclusion Clause’ or Specific Exclusion. In which it is clearly written that the cost of treatment of injuries sustained in war, terrorist attack, or war-like situations is not covered in insurance.
This means that if a person gets injured in war-like situations and needs to be hospitalized, he will have to bear the entire cost of treatment from his own pocket. However, in certain circumstances, insurance companies offer riders or special policies to cover war-related injuries. These riders provide insurance coverage even in war-like situations in exchange for a higher premium. If you live in an area where there is a high risk of war or terrorist activities, then taking such a special policy or rider can be beneficial.
What insurance claim will be available on home or car?
Most general insurance policies, especially home and motor insurance, have a war exclusion clause. This means that damage to your home or car during war or war-like situations will not be covered in the insurance. This means that if your home is damaged in war or bombing, the insurance policy will not cover the cost of repairing or rebuilding it. Home insurance covers damage caused by natural disasters such as earthquake, flood or fire, but generally not the damage caused in a war-like situation.
If you live in an area where there is a high risk of war or attack, you can take specialized coverage designed specifically for high-risk zones. Similarly, your comprehensive motor vehicle policy covers damage caused by natural disasters such as floods, storms and man-made disasters such as fire and theft. That is, if a missile falls on your vehicle, its damage will not be covered in your car policy.
Reviewing the insurance policy is important
The most important thing for every person is to read his policy documents carefully and understand what things are covered in the policy and what are not. In times of geopolitical tension, it has become more important than ever to review your insurance coverage, contact the insurance company in case of any confusion and take adequate cover as per the need.
