Are You Covered In The Event of Terrorism?
Posted by: Jason King
February 26th, 2007.
Today in the news we read that many consumers are unaware that the travel insurance they buy to cover their holidays may not cover them for acts of terrorism. An MPs’ report has recommended regulatory change to address this.
As a result we have been contacted by clients wanting to know about their other insurances and whether they would be protected in the event of a terrorist attack… whether at home or abroad.
The approach taken by insurers largely depends on what kind of policy you have. Life insurance such as term assurance usually covers all risks so regardless of whether a policyholder were to die as a result of terrorist act or not the plan would still pay out the full cover.
For critical illness & income protection (permanent health insurance) it is slightly different as the insurers’ general ‘war and civil commotion’ exclusion could apply. However most insurers would only look to invoke this exclusion if the claimant was actively involved in the accident… i.e. if the claimant was also the terrorist.
Obviously the situation will vary from one insurer to the next so if you are concerned it is important that you check with your insurer or contact us and we will be happy to assist.
This entry was posted on Monday, February 26th, 2007 at 4:08 pm and is filed under Life Insurance.
Listen to this article as a podcast