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News18
3 days ago
- News18
Flight Delays, Floods, And Cancellations: What Travel Insurance Really Covers
Last Updated: Experts stress the need for comprehensive travel insurance in India due to rising climate uncertainty. Discover what it covers and why it's essential. Travel Insurance In India: When planning trips to domestic or international destinations, the idea of purchasing travel insurance rarely crosses the minds of many Indian travelers. They often consider it an unaffordable luxury due to budget constraints. However, unpredictable weather and increasing climate uncertainty are starting to change this perspective. Experts say the need for comprehensive coverage is growing, especially in the face of rising climate uncertainty. What Does Travel Insurance Cover? Travel insurance is traditionally known for covering medical emergencies, accidents, and loss of baggage or documents. However, its importance during weather-related disruptions is being increasingly considered. 'Flights may be cancelled for various reasons, including inclement weather, but travel insurance doesn't cover weather itself—it covers the consequences like trip cancellation or delay," explains R Balasundaram, Secretary General of the Insurance Brokers Association of India (IBAI). He also clarifies that cancellations by tour operators in package trips are not recoverable under most policies. Extreme Weather and Claims According to Vivek Chaturvedi, CMO & Head of Direct Sales at Digit Insurance, 'Flight delays and trip cancellations are the most common claims during extreme weather events like floods or heavy rain. Such incidents directly disrupt travel plans and trigger insurance claims if delays exceed the minimum time specified." He adds that travel insurance can also support in rare but severe cases like accidents at airports or natural disasters. Post-pandemic and amid climate disruption, travelers are opting for more robust insurance. 'Many now prefer higher sum-insured policies—ranging from $250,000 to $500,000—to cover medical costs, fraud, or last-minute cancellations," Chaturvedi says. First Published: June 03, 2025, 11:09 IST
The Hindu
21-05-2025
- Business
- The Hindu
Spurt in premiums for war, political violence cover post Pahalgam attack
Following the terrorist attack at Pahalgam in April and the subsequent ceasefire earlier this month, insurance premiums for war and political violence cover available for Indian companies have risen 'significantly,' according to insurance brokers. Though Indian insurers are not offering any property insurance policies for war and conflicts to Indian corporates, policies covering war and political violence are being made available from international reinsurers which had been issued with stricter limits and conditions. Deepak Madan, Head Commercial Lines, Large Account Practices at Prudent Insurance Brokers said, 'Property insurance policies for war and conflict-related situations are typically excluded from insurance cover so there was no impact at all in premium. And thus geopolitical tensions usually do not influence premium rates.' 'But several companies had purchased war and political violence coverage which is a reinsurance-backed cover, available primarily through international markets. The availability and terms of coverage also vary according to the property's location, particularly in high-exposure areas such as Jammu and Kashmir and other border regions,' Mr. Madan said. Hari Radhakrishnan from Insurance Brokers Association of India (IBAI) said since the geopolitical risk had gone up considerably due to various conflicts such as Ukraine, Gaza, Iran and wider Persian Gulf, and Indo-Pak., there had been a downstream impact on insurance and reinsurance markets. 'Since these conflicts can affect oil prices or commodity prices, there can be impact on underwriting and claims in the form of increased costs, increased restoration periods, logistical challenges. Insurers and reinsurers have to factor these into their operating considerations,' he said. He said since the Indo-Pak. conflict is new and still developing even though there is a pause in active hostilities or live action, the impact might be less visible in the immediate term but could be more visible on a longer-term basis. On the impact on the supply chain due to disruptions caused by geopolitical developments, he said, 'When there are supply chain disruptions, certain insurance products such as trade credit insurance, contingent business interruption covers [coverage for suppliers and customers premises] , see a demand spike which is also being witnessed.'
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Business Standard
09-05-2025
- Business
- Business Standard
India-Pakistan conflict: Your insurance policy may not cover 'act of war'
Does your life or term insurance policy cover claims arising from an 'act of war'? With tensions between India and Pakistan on the rise, now may be a good time to review your insurance documents and reassess whether your financial protections are still adequate. According to Narendra Bharindwal, president of the Insurance Brokers Association of India (IBAI), most life and term insurance policies do not. 'Standard life or term insurance policies typically exclude deaths caused by war or war-like operations,' said Bharindwal. 'There's usually a 'war exclusion' clause built in that applies to civilians as well as active military personnel.' The war exclusion clause — War, whether declared or undeclared — Invasion or act of foreign enemy — Hostilities, civil war or rebellion — Insurrection or any similar events This means that even if the policy is active and all premiums are paid, a death resulting from these causes may not be covered. 'If a person dies in a bomb explosion in an active conflict zone abroad, and it's traced back to a war-related event, the insurer can reject the claim,' said Bharindwal. 'But if the death was from an unrelated cause, like an illness or accident, the claim might still go through.' Sandeep Katiyar, co-founder and CFO of Finhaat, explained further. 'Insurers typically have war exclusion clauses baked into the terms,' he said. According to him, claims may be rejected if death results from: — Participation in war or war-like operations — Terrorist activities — Acts of foreign enemies or invasions — Being in a known conflict zone, even if not directly involved However, he added, 'If an Indian expat living in the Middle East dies of a heart attack, and there's no link to the ongoing conflict, the claim can still be honoured — provided there are no geographical exclusions in the policy.' Are there exceptions? 'Some group term insurance plans for defence personnel or corporate insurance for employees posted overseas may include specific cover for such risks,' said Bharindwal. 'But these aren't standard and usually need custom underwriting.' Government bodies like LIC or the Army Wing offer war-risk cover to military personnel through schemes like Armed Forces Group Insurance. Civilian policies from private insurers, on the other hand, usually stay away from war-related coverage. Katiyar said some corporate policies — especially in high-risk sectors like oil and gas, media, or diplomacy — may be customised to include group accident or life cover with such provisions. High-risk international travel policies from general insurers such as Tata AIG or ICICI Lombard may include terrorism cover, but under health or personal accident categories — not life insurance. What policyholders should check Katiyar listed a few things individuals should watch for in their policy documents: — Read all exclusions carefully, especially those mentioning war, terrorism, or high-risk jobs — Check for optional add-ons like accidental death or terrorism cover — Review territorial limits — some policies exclude coverage outside India — For NRIs, confirm whether being in a high-risk area affects claim eligibility 'If you see terms like 'acts of war', 'civil commotion' or 'terrorism' in the exclusion section, it's a red flag,' he said. 'Clarify with your insurer.' He added that policyholders living or working in high-risk zones should consider: — Comprehensive international life insurance that includes conflict zones — AD&D (Accidental Death and Dismemberment) riders with terrorism cover — Group insurance negotiated by employers with explicit war-risk inclusions — Global insurers who state inclusion of conflict zones, subject to certain conditions 'Most importantly, always declare your location and job profile truthfully. If you leave that out, the insurer might reject the claim later — even if the death wasn't war-related,' said Katiyar.
