Acts of terrorism, political violence and sabotage are excluded from standard property policies. War, Terrorism & Sabotage Insurance fills this critical gap — protecting assets against the full spectrum of politically motivated damage.Coverage includes physical damage from terrorism, sabotage, riots, strikes and political violence, plus business interruption following an insured event. Multinational companies can access Difference in Conditions (DIC) policies to fill gaps between Indian and global policy terms.War risk is excluded from virtually all standard policies, including fire and marine. Terrorism cover for assets is available through India pool-backed policies. Business interruption from terror events requires a specific extension. Coverage requirements vary by asset type, geography and industry sector.
Every standard fire and property policy in India excludes war, terrorism and political violence as standard exclusions. Without a specific WTS endorsement or policy, businesses operating in high-risk sectors or geographic areas are entirely uninsured for these perils — a potentially catastrophic exposure for asset-heavy industries.
Industrial disputes, communal tensions and civil unrest can result in physical damage to factories, warehouses and commercial properties. The RSMD (Riots, Strikes, Malicious Damage) extension within WTS coverage protects business assets against these events, which are a real risk for manufacturing facilities and distribution infrastructure.
The financial damage from terrorism or civil unrest extends well beyond physical repair costs. Supply chain disruption, loss of access to premises, customer cancellations and workforce displacement can cause significant revenue loss. WTS policies with business interruption extensions cover these consequential financial losses.
Power plants, oil and gas infrastructure, telecommunications towers and transportation hubs are both high-value assets and high-profile targets for sabotage and terrorism. WTS Insurance is virtually non-negotiable risk management for operators and owners of critical national infrastructure.
Multinational companies operating in India often need to demonstrate consistent terrorism coverage standards as part of their global insurance programmes. Standalone WTS Insurance or RSMD extensions to local policies provide the coverage evidence required by global risk managers and parent company insurance requirements.
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Terrorism coverage is excluded from standard fire policies. It can be added as an RSMD (Riots, Strikes, Malicious Damage) extension for smaller risks, or accessed through the India Market Terrorism Risk Insurance Pool (IMTRIP) for larger industrial and commercial properties.
IMTRIP is a pooling arrangement among Indian non-life insurers, backed by the Government of India, that provides terrorism risk coverage for large commercial and industrial properties. It operates separately from individual insurer capacity and provides standardised terrorism coverage through the pool mechanism.
Physical damage caused by cyber terrorism — for example, a cyber attack that triggers physical destruction of machinery or infrastructure — may be covered under certain WTS policies. However, purely financial cyber losses are typically excluded and require standalone cyber insurance.
Most WTS policies available in the commercial insurance market cover terrorism and political violence but not war between sovereign nations. War risk coverage for assets in conflict zones requires specialist markets, typically through London-based specialty insurers or Lloyd's of London.
Terrorism risk premium is based on the location of the property (proximity to high-risk targets), the nature of the business and assets, the sum insured, any protective security measures in place and the overall risk profile. Rates can vary significantly based on these factors.
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