What is the price of terror cover?

With uncertain times like these when both life and establishments are under threat of a terror attack, the man on the street should ensure that he has relevant cover. Sandeep Singh reports.

With uncertain times like these when both life and establishments are under threat of a terror attack, the man on the street should ensure that he has relevant cover.

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But terror insurance only gets attention when there is a strike. “I expect a surge again in people taking terror insurance cover over the next couple of weeks,” said Rahul Aggarwal, CEO, Optima Insurance Brokers.

As far as life insurance goes, any loss of life due to terror strike is covered under the scheme of a company with add on of accidental cover.

Terror insurance on life is exclusively offered by Optima Insurance Brokers in tie up with Oriental Insurance and New India Assurance that acts as the underwriter.

Optima insurance is offering Rs 1 lakh free terror insurance cover that can be taken by visiting its website, click2insure.in. Free insurance will be offered to first 100,000 people.

“We started offering the cover after the Jaipur blast in May this year and till now 25,000 people have taken the cover,” said Aggarwal.

After offering free insurance to 100,000 people, the company will offer the insurance for a cost, which is minimal. “We plan to offer terror insurance of a cover of upto Rs 5 lakh for a premium of Rs 100 per annum,” said Aggarwal.

As per Insurance Regulatory Developmental Authority (IRDA) norms all the premium of terrorism insurance is collected in a common pool. Any terrorism related insurance claims too is settled using funds from this common pool.