As the country mourns the dead in the terror attacks in Mumbai and governments may announce compensation to the bereaved families - insurance claims may not really be settled easily - thanks to the 'fine print' and in fact, lack of a proper cover against terrorist violence.
A 'terrorism insurance cover' is not still present in the country, say experts.
However, they add that in most life insurance products, the basic sum assured may be offered to survivors in case of death of the insured due to 'any reason' other than suicide in the first year (of obtaining the policy).
"Unlike the US and UK, we don't have any insurance cover against 'terrorist' acts. Loss of life due to terror may fall in the category," says an official of Kotak Life Insurance.
Terrorism cover is offered by general insurance companies as an add-on policy with the fire insurance policy.
"After 9/11, most companies refused to give cover against acts of terrorism. General insurance companies then formed a pool and since then all premium collections done by the industry for this policy have been put into this pool," says Vineet Vidyarthi, principal officer, Almondz Insurance.
According to industry reports, non-life insurance companies were flooded with claims worth Rs 1.3 crore (Rs 13 million), specifically on account of terror acts this year so far. During the previous year, the figure stood around Rs 1 crore (Rs 1 million).
Vidyarthi says some time many insurance companies deny compensation citing the important points in the fine print covering terms and conditions.
"It happens that when the claimant goes to take the sum, insurer may point out some encircled 'terms and conditions' and blame the person of not going through them seriously, just to avoid the payment," he says.
According to the Insurance Regulatory Development Authority norms, all general insurance companies should be allied to a common pool for terrorism insurance.
So, premium of terrorism insurance collected by all general insurance companies flows into a common pool. Any terrorism related insurance claim is settled by using funds from this pool.
Seema, senior manager, ICICI Prudential, says that now after so many terrorist attacks the insurance industry is seriously thinking of launching a plan exclusively against acts of terrorism.
"I can say that people are now becoming aware and the constant query about terrorism insurance cover has prompted all of us to give it a thought," she adds.
At least 195 people were killed and 295 injured in Mumbai terror attacks, at 10 places including the two five star hotels - the Taj and the Trident - according to Disaster Management Cell of Mumbai Municipal Corporation.
Apart from Mumbai, in the last one year, the country has seen many terror attacks. Many people have been killed in the ghastly attacks in Assam, Malegaon, Delhi, Bengaluru, Ahmedabad and Hyderabad.
