Terrorist attacks are unexpected, tragic, and emotionally devastating for everyone affected. In such heartbreaking situations, families not only face a deep personal loss but also find themselves dealing with financial uncertainties. While no amount of money can replace a life, insurance plays a vital role in offering some financial support to the victim’s family.
But a big question arises: What does insurance cover if someone dies in a terrorist attack? Is it treated the same as a normal death? Are there any special conditions or exclusions? Let’s break it down in simple, clear language.
🛡️ Is Death in a Terrorist Attack Covered Under Insurance?
Yes, in most cases, life insurance policies do cover death caused by a terrorist attack. However, the coverage depends on the type of policy, the insurance company’s specific terms, and whether or not terrorism is included or excluded as a clause.
Life insurance is typically designed to cover death from natural causes, accidents, and even unnatural events like terrorist acts — unless the policy excludes such incidents in its terms and conditions. So, it is essential to understand what your policy says.
📋 Understanding Different Types of Insurance Policies and Terror Attack Coverage
1. Life Insurance Policies
Standard life insurance policies in India, such as term life or endowment policies, usually do not exclude terrorist attacks unless specifically mentioned. If a person holding a valid life insurance policy dies in a terrorist attack, their nominee or legal heir is entitled to receive the sum assured.
However, it’s important to check for any:
- Force Majeure clauses
- War and terrorism exclusions
If these are not present, the claim should be processed like any other valid death claim.
2. Personal Accident Insurance
Personal accident insurance provides coverage in case of accidental death or permanent disability due to unforeseen events. Most personal accident policies do include death caused by terrorism as an accident unless excluded.
In such cases, the insured’s family is eligible for:
- Full sum insured
- Funeral or hospital expenses (if applicable)
3. Health Insurance Policies
While health insurance primarily covers medical expenses, some policies include accidental death riders. However, if the victim dies immediately in a terrorist attack, the core health insurance policy may not pay out, unless there’s a rider specifically added for such events.
But if the victim is injured in an attack and later dies during treatment, hospital expenses and death-related benefits (if included) may be claimed.
🏢 What About Government Schemes and Terrorism-Specific Compensation?
Apart from private insurance policies, the Indian government and state authorities also have special compensation schemes for victims of terrorism.
A. Prime Minister’s National Relief Fund (PMNRF)
Victims’ families may receive financial assistance from this fund, especially in major attacks. The amount varies based on the severity and nature of the incident.
B. State Governments’ Compensation
Many state governments, like Maharashtra, Delhi, and Jammu & Kashmir, offer ex-gratia compensation to families of those who die in terrorist attacks. This can range from Rs.5 lakh to Rs.10 lakh depending on the state and the situation.
C. Unorganised Workers’ Social Security Schemes
If the victim was a registered worker under such schemes, their families may get additional benefits such as pension, health cover, or education support for children.
D. Central Victim Compensation Scheme (CVCS)
Under this, compensation is paid to victims (or their families) of various crimes, including terrorist attacks. The District Legal Services Authority (DLSA) processes such claims based on recommendations from police or NGOs.
🔍 What Are the Legal Rights of the Victim’s Family?
In case of death due to a terrorist act, the nominee or legal heir of the insured has the full right to file an insurance claim. If the claim is rejected on unclear grounds, the family can:
- File a complaint with the Insurance Ombudsman
- Approach consumer courts for justice
- Get support from legal aid services, especially if the victim belonged to a lower-income group
The claim process should ideally be smooth, provided all documents are submitted, including:
- Death certificate
- FIR and postmortem report
- Proof of a terrorist act (often provided by police or investigating authorities)
- Copy of insurance policy and ID proofs
💬 Common Myths and Misunderstandings
Myth 1: Insurance does not cover terrorism.
Truth: Most insurance companies cover terrorism-related death unless it’s excluded in the policy.
Myth 2: Only salaried people get insurance benefits.
Truth: Even daily wage workers, farmers, or shopkeepers may have personal or government-backed policies. Their families can also claim benefits if eligible.
Myth 3: Long delays are common in such claims.
Truth: If all documents are in order, most insurers settle claims within 30-60 days. Government compensations may take a bit longer but are usually released in batches.
🧾 Real-Life Examples that Help Understand the Process
Let’s say Mr. Rajiv, a 38-year-old working professional in Mumbai, dies during a terror attack. He had a ₹50 lakh term insurance policy and a personal accident cover of ₹10 lakh. Here’s what his family can receive:
- ₹50 lakh from his term insurance (life insurance)
- ₹10 lakh from his personal accident policy
- ₹5 lakh from the Maharashtra government’s compensation policy for terror victims
- Additional funeral or legal expenses (if covered)
In this case, his family could receive Rs.65 lakh or more, helping them financially during a traumatic period.
🚨 Why It’s Important to Read the Fine Print
When you buy any insurance, especially life or accident cover, always check if it includes or excludes death due to terrorism. Some cheaper policies, especially online ones, may exclude such causes under general “war and terrorism clauses.”
Ask your insurer directly, and if possible, get it in writing or by email for clarity.
🛠️ Tips to Make the Claim Process Smooth
- Keep copies of the policy, nominee details, and ID documents safely.
- Inform the insurer immediately after the incident.
- Collect police reports, FIRs, and hospital records without delay.
- Consult a legal or insurance advisor if the process seems unclear.
