Does Travel Insurance Cover Terrorism?

Posted on: May 16, 2022 | | Written by:

Does Travel Insurance Cover Terrorism?

A lot of travellers opt for international travel during the summers. It is ideal for some of the colder countries since the days are longer, thereby giving travellers a bit more time to explore. However, given the recent series of attacks, terrorism is a concern that worries a lot of travellers. If you are travelling to the US for example, you would buy travel insurance for USA. However, does it cover terrorism?

Though the chances of you being at the receiving end of a terrorist attack are relatively slim, one cannot ignore the risk. And it only makes sense for travellers to rely on their travel insurance to get some sort of reassurance. A travel insurance policy can provide you with a lot of coverage and protection. However, you need to decide if you need just travel insurance or consider all possible options for the worst-case scenario. A small amount of time spent on research can help you put your mind at ease and give you much-needed perspectives and a quick reality check as well.

The first thing that one needs to consider is the possibility of a terrorist attack and how likely you are to be impacted by such an incident. Since it is a sensitive topic, it calls for clear communication. Terrorism is a tough subject, irrespective of what your apprehensions are, irrespective of the geopolitical situation or your destination.

Given the constant news alerts that we have these days and it is quite easy to believe that a terrorist attack is directly going to impact you. However, that might not be entirely true. In fact, that is far from the truth. Here are a few numbers that should give you some comfort. According to the U.S. State Department Statistics, 350 U.S citizens lost their lives to terror activities between 2001 and 2013. And it was when they were travelling.

If you are a numbers person, this puts the odds of you being in a similar situation at 20 million to 1. This is far less than the chances of you being struck by lightning, which stands at 5.5 million to 1. It is still possible that these numbers might not put you at ease. And it is only natural to be wary about such occurrences even if it is remote when you are travelling.

One smart way of tackling such a situation is to opt for a travel insurance policy. You can look for a policy that covers terrorism. Travel insurance policies usually cover a few scenarios that involve an act of terror. The policy might also include the scenario where a terrorist attack takes place at your destination within 30 days of your planned arrival.

Avoid Terrorism

It is a good idea to avoid visiting places that have a track record of terrorist activities. This is your first step towards protection. However, if you are unsure about the safety of your destination, you can use different sources for information on the same. The U.S State Department’s website is a good source to start with. They usually have travel alerts and warnings for specific destinations.

Though the acts of terrorism are quite unpredictable and can take place anywhere, there are a few precautions that you can take regarding them. Here are some simple examples of the precautions.

1. It might be good to book direct flights from your source to your destination. This will help you limit airports that are on high-risk alerts or avoid public areas as well.

2. Should you observe any suspicious activity, ensure that you report it to the local authorities by exercising your judgement to the best.

3. You must avoid letting strangers come into your hotel rooms or accept packages from unknown people or even handle them for that matter.

4. Getting your cabs at random can be a better decision than relying on someone else to do that for you. Also, make it a point to have your cell phone well charged at all times. And make sure that your vehicle’s windows are always rolled up.

Trip Cancellation Due to Terrorist Activity

Travel insurance plans can cover trip cancellation that is caused due to a terrorist attack. However, it largely depends on the timing of the attack. Some insurance companies cover terrorism as a reason for the cancellation of a trip if it happens within 30 days of your scheduled travel dates. There is also a possibility that a lot of insurance companies do not consider that as a valid reason for the cancellation of trips.

For example, you have booked a trip to a country for a week and have opted for a travel insurance plan. There is news about a bomb explosion in your destination and you decide not to travel anymore. Should you decide to cancel your bookings, your travel insurance provider will reimburse you for the pre-paid travel arrangements.

Terrorist Attack on Planes

In the event of an attack on the airline that you are flying and the services are ceased for more than 24 hours, this calls for a valid reason for trip cancellation. And your insurance provider will cover the related expenses. In the unfortunate event of you or a companion being hijacked, it qualifies as a reason for trip cancellation.

In such an unfortunate occurrence, if you can, you must reach out to your insurance provider. They will try to get in touch with the local authorities or the Embassy and make alternate travel arrangements. However, if there is a terrorist attack on another airline, it is not a valid reason for trip cancellation.

Before you plan for your next international trip and book your travel insurance, here are a few simple points that you need to keep in mind.

1. Check if your travel insurance policy covers terrorist attacks.

2. What are the exclusions of your travel insurance policy?

3. Check the coverage of the policy along with its compensation.

Exclusions are the scenarios that are not covered as a part of the policy. Here are some common exclusion of travel insurance plans.

1. Pre-existing medical conditions

2. Drug abuse, suicide, cosmetic surgeries, etc.

3. Riots, nuclear hazards, wars, etc.

4. Being involved in extreme sports or adventure activities

Keeping the above points in mind will help you make a better decision before buying travel insurance. Being aware of the different clauses and fine prints of the policy is crucial in your claim being accepted or rejected.

It is always a good idea to buy travel insurance before your travels. This will keep you secure against most of the common travel-related issues. And if you are particularly worried about terrorism, you can discuss it with your insurance provider for additional coverage, if it is not already covered as a part of the policy.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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