The terrorist attacks this week on Mumbai has reinforced discussion on not only how to effectively tackle the problem and make it possible for travellers (tourists) to visit places of attraction without much fear, but also how to compensate them in the event of such attacks. Often such discourses are only fruitful where there is an enabling situation, created in the first place by every traveller. Thus the question of travel insurance, in this context, is very paramount.

Since the events of September 11, 2001 in which America came under terrorist attacks travelling has continued to become an increasingly risky business. Apart from accidents and other likely mishaps several attempts to blow up airlines and kill travellers were foiled by vigilant security forces. But a few ones have been successful, like the Madrid train bombings that killed scores of innocent people.

Travel insurance cover for terrorism

The fact that terrorists are now increasingly targeting travellers – either those travelling by air, road or rail or at their holiday destinations - has significantly affected the coverage travellers get from their policies. Today nearly all travel insurance policies provide cover for travellers in the event of attacks by terrorists, although some still have ‘exclusion’ clauses. Explaining this further, the Association of British Insurers (ABI) spokesman Malcolm Tarling said: “The majority, something like 60 per cent, now cover terrorism.”

Whereas this is something worth celebrating by travellers, the big issue is whether many people heading off on trips or dream holidays are willing to take advantage of the inestimable benefits. Let’s not forget that on several occasion experts in the insurance industry as well as the Foreign and Commonwealth Office (FCO) have had to remind British travellers that travelling without adequate travel cover was not worth the trouble. In several surveys it was found that, despite warnings from experts, many Brits still find it convenient to travel abroad and even engage in very risky activities without having any insurance to cover their trip or the activities they participate in. In some cases, in the past, serious injuries were sustained or lives lost and in the end the affected travellers or their families were left to pay for their medical expenses or cost of repatriation or both from their own pockets.

Choosing policy on the basis of needs

Although some travel insurance policies do not cover terrorism they still provide some major reliefs. According to Mr Tarling: “Some will still have war exclusions, although these will still cover medical expenses…”

Thus, travellers with travel insurance are, at least, sure of a fallback in the event of unforeseen happenings. But to enjoy enough protection in the current climate the ABI reminded them to always make sure they choose policy based on their needs and not just to save costs. This is not to say that a policy that provides cover for terrorism would be prohibitively expensive. It may only cost a little more, especially where one shops around for the best deals available on the market.

Meanwhile, another good news for British travellers is the move by the Government to facilitate meetings with travel insurers that could result in British victims of terrorist attacks abroad being equally compensated like those attacked on British soil. Whereas the plan is still at the level of discussions, half a million pounds in compensation will go long way in helping a victim of terrorism deal with some immediate needs.