MUMBAI, INDIA, September 24, 2006: The rising number of Muslim terrorist strikes has not dampened the festive spirit for Navaratri in Mumbai, Durga Puja in Kolkata and Ramleela in New Delhi. However, efforts to buy anti-terror insurance for these public celebrations are turning into a futile exercise. General insurers are wary of underwriting terror risk insurance for such events in the absence of reinsurance support. “Terrorism is a major threat now and certain locations are definitely terrorism-prone. However, reinsurance for terrorism is available only if the sum insured is above $1 million. We normally discourage clients from taking terrorism cover,” said a private general insurance executive, while admitting that there was a rush to buy cover for such functions. Organizers of these festivities are keen to shop for event insurance policies with add-on terror cover, but many of them are forced to buy standard event insurance minus the terror cover. Anti-terrorism insurance is not sold as a stand-alone policy, but as an optional cover available for an extra premium with an event insurance policy. The brokering community said it was difficult to convince insurance companies to provide terror cover for such events and many of the Navaratri events for which event insurance policies have been bought are without terrorism protection.
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