Companies lapping up terror cover

The increased threat of terror attacks over the last few years has seen companies increasingly seeking terrorism benefits cover for their employees as an additional benefit under group personal accident policies.

None of the general insurance companies so far offer terrorism cover separately. It is offered as an additional risk cover for those availing of personal accident policies.

Companies have to pay around 15 per cent additional premium to avail of terrorism cover. Insurance companies, however, include terrorism cover in personal accident policies sold to individuals,

Personal accident policy is an annual policy that provides financial compensation in case of accidental death, dismemberment, permanent total disability, permanent partial disability, temporary total disability, arising out of accidents/ injuries including terrorism, besides a monthly guaranteed income and hospitalisation expenses.

According to Nikhil Apte, zonal manager, Tata-AIG General Insurance, "GPA policies are very popular with all big corporates as it forms an important employee benefit and is an indicative of good HR practice.

However business houses are shelling out an additional premium and also including risks due to terrorism while buying group policies. In GPA policy there is an additional 10-15 per cent loading on the premium if the corporate wants to include terrorism."

Zee Group, XEROX, Renaults India, Reserve Bank of India, Price Water House, WNS Global Services, Veritas Software, Venkateshwara Hatcheries, Saint Gobain, Kale Consultants, Fiat, Finolex, Gabriel India, Apeejay Surendra Park and AOL Online India.

"There are many big business houses which have included terrorism cover while buying personal accident polices for their employees from us," said K Krishnamoorthy, national manager-underwriting at Bajaj Allianz General Inurance Company.

Similarly, ABN Amro Bank and Orchid Chemicals chose a terrorism cover in their personal accident policies for their employees from ICICI Lombard General insurance.

Over 40 leading companies such as Hindustan Lever Ltd, Deutsche Bank and Patni Computers have opted for terrorism benefits under the group accident policies bought from Tata-AIG General Insurance.

The general insurance industry earns over Rs 300 crore by selling personal accident insurance policies.