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Optimism

No Takers for Terror Insurance in Mumbai

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Despite terror attacks and bomb blasts, people in Mumbai do not seem to be overly scared for their lives. Of the estimated 15 million population in the metropolis, only 9,000 people have availed of a terror policy offered by the Oriental Insurance Company.

The policy, available to anyone above 25 years of age, was launched with much fanfare shortly after the 26/11 terror attacks. Within two hours of it being offered online, about 120 people had applied for it. But after that, the pace of applications has been sluggish.

In addition to the amount payable in the event of injury or death due to a terrorist act, there was also a special benefit—a lumpsum of 2 per cent of the capital sum insured or Rs 2,500 (whichever is less) for the transportation of the dead body of the insured to the place of residence.

Says a company official who does not want to be named, “Unlike other kinds of insurance, there is not much demand for terror insurance in the city. Many in Mumbai feel that there is little chance of their dying in a terror attack. The response has been very slow. Maybe in the future it could be an important option for insurance seekers.”

Interestingly, the policy has seen a lot of demand from smaller cities. So far, it has been availed by people from 650 villages. Totally, about 35,000 people have taken the terror policy from across the country, discloses the official.