Does insurance policy cover terrorism?

Dear Mr Tan

Many insurance policies exclude payments for death/hospitalisation due to terrorist activities. This is unfair.

If I have lunch at Macdonald on a perfectly normal day and a terrorist suicide bomber detonated a bomb and killed me, or maimed me, the insurance policies exclude such incident from death benefit and hospitalisation claims.

As far as I am concerned, such incident is no different from being killed by a flying brick while crossing Punggol Track 22 Road. Why am i paying insurance premium if I am not covered?

REPLY:

Life insurance policies do not exclude death due to terrorist attack. In this event, the sum insured plus bonus are paid in full.

Terrorist attacks are usually excluded from personal accident insurance, as the premium rate is very low. In a terrorist attack, many people are likely to be killed or injured at one time. This is different from being hit by a flying brick on an islated road.

Some personal accident policies do cover terrorist attack, to a limited or full extent.