Does your Indian life insurance policy cover you if stuck in war abroad?

Does your Indian life insurance policy cover you if stuck in war abroad?

• Category: Life Insurance
• Date: 04-03-2022

Hundreds of civilian casualties, including the deaths of two Indian nationals, have already been reported in the ongoing Ukraine-Russia conflict. This has raised a critical question among Indian citizens living or traveling abroad: Will an Indian life insurance policy provide coverage in the event of death due to war-like situations abroad? The answer, in most cases, is yes. Indian life insurance policies generally cover deaths regardless of the location, including in foreign conflict zones like Ukraine. According to industry norms, there are typically no exclusions for war-related deaths unless explicitly stated. The only standard exclusion seen in most term insurance policies is suicide within the first year of policy commencement. For example, LIC’s Tech Term Plan specifies that if the policyholder commits suicide within 12 months, the claim payout is limited to 80% of the premiums paid. However, there are usually no specific clauses that deny coverage for war-zone fatalities, unless the insured was actively participating in war or in a military role. That said, not all policies are the same. It’s vital for policyholders to review the fine print or consult their insurer to understand specific terms and exclusions. In uncertain global times, life insurance continues to serve as a vital financial shield for families, even across borders.

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