Does your insurance cover War?
In light of the recent tensions along the India-Pakistan border, a question that has come up time and again is: Does insurance cover war-related damages? Let’s break it down by the main types of insurance.
- Motor Insurance
Not Covered
If your vehicle is damaged by a missile strike or caught in crossfire during a conflict, standard motor insurance policies will not cover it. Comprehensive and third-party motor policies in India specifically exclude damage caused by war, invasion, military action, or civil unrest under what’s called the “war and nuclear risk” clause.
Some commercial fleets or military vehicles may have access to specialised war risk insurance, but these are down to negotiations between insurers and their commercial customers.
- Life Insurance
Covered
Unlike general insurance, life insurance policiesin India do not exclude war (for Death benefit) in their standard exclusions. The only universal exclusion in most life insurance policies is suicide within the first policy year.
But war is also excluded for riders such as Accidental Death Benefit or Permanent Partial/ Total Disability.
However, group insurance plans for armed forces or certain corporate sectors (like oil and gas, international media, or diplomatic services) could include explicit war cover.
- Health Insurance
Not Covered
Standard health insurance policies in India exclude injuries or fatalities resulting from war or war-like operations. This includes civil wars, military conflicts, and large-scale terror events involving military-grade weapons.
While some specialised health plans from insurers like Tata AIG or ICICI Lombard may include limited terrorism cover, war injuries are systematically excluded unless such cover is specifically granted by the insurer.
- Property/ Home Insurance
Not Covered
Home insurance policies cover fire, theft, natural disasters, and accidental damage. However, they universally exclude damages from war, invasions, military operations, and missile strikes.
Specialised war risk insurance for property does exist globally, but it is not available for retail homeowners in India.
- Marine & Aviation Insurance
Covered
In marine and aviation insurance, cargo in transit, commercial vessels, and aircraft can be protected against war-related damage through specialised war risk endorsements. These endorsements typically require an additional premium and are supported by global reinsurers.
In marine insurance, war risk coverage is typically offered as an add-on under marine hull and cargo policies, protecting against risks like capture, seizure, and damage from acts of war while in transit.
For aviation, war risk insurance covers loss or damage to aircraft and liability to third parties arising from war, hijacking, and terrorism-related acts. These covers are especially critical for international airlines and cargo operators flying in high-risk zones.
- Cyber Insurance
Not Covered
Cyber insurance is increasingly being adopted by Indian companies due to regulatory requirements and the need to protect against data breaches, ransomware attacks, and business interruptions.
However, most cyber insurance policies have war exclusions, especially for cyber incidents arising from attacks on the nation or large-scale geopolitical cyber warfare.
This means that if a cyberattack is attributed to a state-sponsored act of war or occurs during a declared conflict, the insurer may deny the claim.
- Group & Specialised Policies
In some high-risk professions and sectors, customised group policies that include war cover may be taken. These are common in:
- Defence and armed forces
- International reporting/media
- Oil & gas industry
These are not standard and are priced and underwritten based on risk exposure, location, and activity.
What can you do?
Given the current geopolitical climate, especially in conflict-prone regions, here are a few steps you can take:
- Read your policy document carefully.
- Reach out to insurancepe about your concerns.
- Don’t assume protection exists just because you have a policy. War exclusions are near-universal.
War-related events are typically excluded from most insurance policies in India due to their unpredictable and catastrophic nature.
This means understanding your limitations is crucial. Stay informed. Stay insured.
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