Home Insurance: During the war between India and Pakistan, houses suffered a lot of damage at many places. In such a situation, the question arises that if the house is harmed in the war, then the insurance companies will pay it? This question is especially harassing people living in the border areas, where there is more possibility of loss due to war.
Experts believe that this question answer is quite complicated. However, the attitude of the insurance industry is clear, ‘war’ or any situation related to it is outside the purview of insurance cover.
Why are claims related to ‘war’ rejected in insurance policy?
The home insurance policy in India usually clearly states that the loss will not come in the insurance cover due to ‘war, foreign invasion, military action or rebellion’. The definition of ‘war’ is also very widespread, “War, invasion, activity of foreign enemies, declared or undeclared war -like circumstances, civil war, rebellion, military rebellion or illegal occupation of power.”
According to the expert, insurance companies want to avoid unusual and comprehensive risks that can be easily measured nor made insured.
What options do people in border areas have?
There is no ‘war-rash underwriting’ model for real estate or residential property yet, as is seen in aviation or marine insurance. Since, airplanes and seafood work falls in war, companies give them such insurance coverage, which cover war, invasion, military conflict or dangers associated with it.
However, experts say that extending the insurance policy for such a threat is neither practical, nor existing laws allow it.
Are terrorist attacks cover?
Insurance policies contain a separate ad-on cover for terrorist incidents. If you add ‘Terrorism Coverage’ while taking the policy, the house can get a claim if the terrorist attack is damaged.
However, this is also a very complex case. For example, if the loss is caused by the attack of a country’s army, then it will come in the category of ‘war’ and not terrorism. In this situation the insurance company can reject the claim.
Some limited options for ‘political violence’
Some insurance companies especially provide political violations or Civil Commotion Covers, such as a riot, breaking or burning shop-house. However, this option is available only in select policies.
In such a situation, the customer is responsible for raising the necessary documents to claim. Along with technical evaluation, media evidence is also necessary. Insurance customer may have to pay police FIR, photo, repair estimate and bill. They have to confirm government riots from a newspaper, news channel or government notification.
What to do home owners in the border areas?
It is still not possible for insurance companies to cover the war and the damage related to it. In such a situation, border citizens need to be alert, because insurance may not stand with you in the event of war.
However, it may be that the government later provides financial help during relief and rehabilitation. In such a situation, you should keep all documents, bills and photos safe. You can closely review your existing insurance policy and ask the insurance company whether any additional coverage is available. If it is, you can take advantage of it. Or you can also consult a financial expert.
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