Outlook Business Desk
A car blast near Delhi’s Red Fort metro station on 10 November 2025 killed eight people and injured more than twenty, prompting urgent questions about financial protection from terrorism-related losses.
The Red Fort blast, now under probe through India’s anti-terror law, has reignited concern over whether ordinary insurance plans cover losses from terror attacks, from damaged homes to disrupted businesses and vehicles.
Most insurance policies in India exclude terrorism by default. To stay financially protected, policyholders must choose a terrorism damage cover or buy a separate stand-alone policy that specifically includes such risks.
Created in April 2002 after global reinsurers withdrew terrorism coverage, the Indian Market Terrorism Risk Insurance Pool (IMTRIP) allows non-life insurers to collectively share and manage terrorism-related risks for properties across the country.
In 2023–24, IMTRIP collected ₹1,654.63 crore in premiums, down from ₹1,809.01 crore the previous year. According to IRDAI’s annual report, as reported by Moneycontrol, claims worth ₹3.12 crore were settled, with no major terror-related losses.
Under pool guidelines, terrorism insurance provides coverage of up to ₹2,000 crore at any single location. For protection beyond this limit, businesses need separate stand-alone terrorism policies covering explosions, fires and large-scale physical damage.
In India, most life insurance plans include death caused by terrorist attacks unless specifically excluded. However, the cover usually does not extend to deaths occurring in war zones or during active participation in riots or insurgencies.
Meanwhile, comprehensive home insurance plans can include terrorism-related damage if opted for, while comprehensive motor insurance policies may compensate vehicle owners for losses caused by explosions or other acts of terrorism.