Travel Insurance and Terrorism
A Insurance Article Contributed by Deepak Cutting
Travel Insurance Against Terrorist Acts
To obtain such insurance during travel that covers terrorist acts has become important, particularly after the tragic incidents of September 11th. Once your travel is effected by a terrorist act, there is no use in going through the terms of your travel insurance policy, only to find that your plan does not provide for losses due to that specific terrorist act. Today the terrorist threat is as real as any other mishap and your travel insurance plans must specifically provide such protection.
Definition of a Terrorist Act in Respect of Travel Insurance
A terrorist act is defined as an act of violence other than civil disorder, riot or an act of war, (declared or undeclared), that results in loss of life or major damage to property. Such act is committed by any person acting on behalf of or in connection with any organization which is generally recognized as having the intent to overthrow or influence the control of any government.
In respect of travel insurance claims arising from acts of terrorism, it is important to note that travel insurance policies generally DO NOT include violation of Govt. mandate. This means that the travel insurance cover will not extend to travel undertaken in contravention of Govt. notifications. The Govt. may have grounded all flights at any particular time or placed restrictions on travel to a particular country.
Some insurance companies will not provide protection on travel in contravention of these notifications. Also, some travel insurance plans will not allow you to claim damages on cancellation of your travel plans on account of terrorist incidents in your city of origin or destination, within 30 days of your scheduled departure/ arrival. Please verify this provision in the policy that you propose to buy.
It is significant that travel insurance against terrorist acts does not protect you if traveling by a private plane. Travel must be undertaken on a regular or chartered flight operated by a scheduled airline and a licensed pilot. Also, the insurance protection must be operative before boarding the aircraft or departure by any other means of travel. Once activated, the cover will be available on all flights and from the time of departure till the end of the trip, irrespective of the number of flights undertaken.
Scope of Travel Insurance Against a Terrorist Act
Some travel insurance companies compensate the policyholder for alteration/ cancellation in their travel plans due to terrorist acts. They will pay this benefit up to the amount on the Schedule of Coverage, if a trip is canceled interrupted or delayed due to A Terrorist Act which occurs in your departure city or in a city which is a scheduled destination for your trip provided the Terrorist Act occurs within 30 days of the scheduled departure date for your trip.
For residents of WA, WI, ME, NH, and NC coverage does not apply to your departure city and is for a terrorist incident in a foreign city to which you were scheduled to arrive within 30 days following the incident.
If you purchase the travel insurance policy within ten days of your initial travel, you will be eligible for benefits up to the non refundable portion of your protected trip cost if you cancel your trip due to a terrorist Incident. The terrorist Incident must occur in a city included on your itinerary and must have occurred within 30 days prior to your Scheduled Departure date. This same city must not have experienced a terrorist Incident within the 90 days prior to the terrorist incident that is causing your cancellation.
