Leaving the questions like:
- Who did this, who all are behind this?
- What were the intensions and what they were trying to gain?
let us look into, what the impact is.
The financial loss is accounted for Rs 4000 crore; this is mainly from the immediate business upsets. But what happens for the loss of life and disruptions to the daily life of common man.
Apart from the compensations from the Government will people benefit from anything else.
Are people insured??
Yes that is a big question and to ponder into the fine print (terms and conditions). "Unlike 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. [www.ndtv.com]
How to assess the risk from terrorism?
what are the potential consequences?
how frequent it can happen?
To answer above, it is becoming increasingly difficult by looking into the mode of operation, the extent of catastrophe and the uncertainity in the sequence of events (domino effects).
There are some countries who have some guidance on the insurance for terrosim related risk:
- Australia
- Austria
- Finland
- France
- Germany
- Israel
- Namibia
- Netherlands
- Russia
- South Africa
- Spain
- Switzerland
- Turkey
- United Kingdom
More information is available from:
http://www.clydeco.com/services/expertise/insuranceandreinsurance/legal-guides.cfm?contentID=2135
http://www.iii.org/media/facts/statsbyissue/catastrophes/
http://www.riskandinsurance.com/0702choice.asp
http://www3.interscience.wiley.com/journal/118597786/abstract?CRETRY=1&SRETRY=0
SreeRaj R Nair
Risk Management
Disclaimer: The comments above are authors own view only and the author assumes no responsibility or liability incurred as a result of any use or reliance upon the information and material contained within or downloaded from its website. Hypertext links to third party websites are provided for the convenience of readers only. E&OE
Posts
2 comments:
Insurance cover for terrorism in India:
Optima Insurance Brokers Private Limited in association with New India Assurance offers a 'terrorism insurance cover'.
Besides, a free terror insurance cover for Rs 1 lakh, the company is launching a Rs 5-lakh (Rs 500,000) cover, which will be priced at Rs 99 per annum. More info: www.click2insure.in.
ICICI Prudential Life Insurance and Max New York Life offer life insurance policy, which entertain the claim, if death occurs due to any act of terrorism.
Hi SreeRaj,
Speaking of consequences, I recently came across an article in a business daily which pointed out that the board members of companies have included terrorism also on their business continuity planning and succession programme. The idea is to avoid a vacuum in leadership in case the existing leader(s) become vicitims of terror attacks like the one witnessed at Mumbai. Well, this is not related to insurance, however,the new approach is one of the consequences.
Post a Comment