Terrorism Definiens in Terrorism Insurance

Abstract

The terrorism insurance market is a constantly growing industry as a result of the rise in terrorism and associated violence around the world. This trend has captured the attention of the Indian insurance sector as well. More and more people, companies, and organizations are getting insurance to protect themselves in case a terrorist attack occurs in the future. However, what exactly is terrorism insurance? Is it given under the Unlawful Activities (Prevention) Amendment Act, 2008 or any other related and applicable national or state legislation formulated? Terrorism insurance offers coverage for damages resulting from the aforementioned terrorist acts or guarantees to hold the insurer harmless in the event of such losses. The Indian Market Terrorism Risk Insurance Pool, which is managed by the Insurance Regulatory and Development Authority, is now used by general insurers to offer property insurance. As foreign re-insurers withdrew their terrorist coverage following the 9/11 attacks in the United States of America, general insurers took the initiative to create the pool in April 2002. The cost of terrorism insurance, according to insurers, has decreased recently because there haven’t been any significant losses in the pool. The pool’s capacity has increased to 4,500 crore. But, the recent terrorist attacks in Paris and London as well as the ongoing enemy infiltration over our borders have stoked panic, leading to a rise in terrorism insurance in India. Despite the pool taking advantage of this fear, there is no legal framework in place to control it. While the United States and other nations have laws covering similar matters, this research study examines whether India also needs such legislation