As the siege of Mumbai came to an end, the Ministry of Foreign Affairs confirmed that at least two Canadians had been killed during the terrorist attack, while several others were wounded. (For further details, click here to read the in-depth story by CBC.)
Many among the dead and injured are believed to be tourists. If they held valid insurance policies at the time of the injury, will they or their familites be able to collect insurance benefit payments?
The answer depends on the actual policies held.
There are many kinds of insurance policy that a tourist may hold. For instance, a tourist may have extended health care insurance from work, life insurance to cover the mortgage, or travel interruption insurance stemming from a credit card. He or she will have to read the actual insurance policies to see whether the loss is covered. For example, travel interruption insurance may not cover losses occurring during the hotel stay but only losses occurring on the way from or to the airport.
Perhaps most importantly, you have to look at the exclusions under the insurance policy. The policy will cover anything that is not otherwise excluded. Traditionally before the courts these exclusions are interpreted restrictively, while the benefits are construed liberally.
This “double standard” approach therefore heavily favours the insured. An insurance policies would generally be payable unless the loss falls under one of the exclusions.
That said, what are some staple exclusion clauses commonly found in insurance policies across the board?
Pre-existing condition: If you had a heart attack before you were insured, your insurance would likely not cover your subsequent heart attacks.
Suicide and self-inflicted injuries: This is an obvious one. The insurance company won’t pay you if you intentionally cut yourself up. Under certain circumstances, such as term-life policies, this clause may be slightly different.
Deliberate exposure to extreme danger: Insurance companies don’t like their customers to go bungee-jumping or sky diving, or be featured on Jackass.
War, war-like, terrorist activities: This is a contentious clause and often the subject of insurance litigation. Did losses that occurred as a direct result of 9/11 fall under this category? Do the attacks in Mumbai qualify as war, war-like, or terrorist activities? It’s hard to say.
Excluded regions and territories: You’re on your own if you decide to travel to North Korea for vacation and end up being summarily executed. Other commonly excluded regions may include the Demcratic Republic of Congo, Iraq, Israel, the Palestinian Territories, Ivory Coast, Liberia, Somalia, Sudan, and Yemen.
