With rising tensions along India’s borders and increasing global conflict, insurance is no longer just a tool for medical bills or asset protection. It’s a form of geopolitical risk management. Yet, for most Indian policyholders, the question remains unanswered: Will my insurance cover me if a war or terror event strikes?
Contrary to earlier belief, not all policies exclude war and terrorism by default. As insurers respond to shifting realities, a clearer picture is emerging — one that demands more attention than ever before.
Traditionally, Indian insurance policies — particularly life and health — excluded any claims arising from “war, warlike operations, rebellion, or civil unrest.” But recent industry disclosures reveal this isn’t a blanket rule anymore.
Several life insurers in their standard term insurance policies do cover death caused by war or terrorism. This means that for most civilians, even if death results from a terrorist attack or war-like incident, their nominee is eligible for the sum assured.
In the health insurance segment, the outlook is also shifting. Earlier, injuries sustained in acts of terror or unrest were a grey area. Today, most individual retail health policies offered by major Indian insurers do provide hospitalisation coverage if the insured is an innocent victim of a terror event.
However, the exception arises when the individual is participating in the unrest, or if the incident is classified under exclusions such as “nuclear, biological, or chemical warfare.”
