Terror sells

As terrorism reaches a new level, bringing death to the doorstep of the ordinary citizen, the demand for terrorism insurance is on the rise. Attacks have made young professionals more aware of the reality of terrorism and agents have found it convenient to use this new-fangled term to sell policies.
���Young professionals are taking a keen interest in policies when this new clause is quoted,��� says Rajesh, an insurance agent.���Earlier, insurance policies were sold as tax-saving instruments or safe investment options. Terrorism cover used to get a passing reference. But now, the clause has become the best selling point.��� He goes on to add that professionals and businessmen in their early 30s seem most interested in such policies. ���When I mention that terrorism coverage is part of some product, it makes the customer listen more carefully,��� he adds.
Although the terrorism clause has been widely used since 2005, only recently has it been getting noticed. ���Till even five years ago, accidental death wasn���t a very important concern. But today, it seems like people are more concerned about their family security. Insurance advisors are cashing in on this sense of uncertainty,��� says Arulraj, a team leader employed with a leading IT company.
Tragic events tend to heighten awareness for the need for insurance. Chennai Times conducted a dipstick survey which revealed that while barely 1% of respondents have insurance that covers acts of terrorism, over 60% believe that it is very important to be insured against such incidents.
���The attacks in Mumbai, and in fact all the recent attacks in various cities, show that terror has reached our doorsteps. It���s no longer confined to sensitive areas of the country. I think it���s even more important to look at insurance, with life becoming so uncertain,��� says Jefferson Cornelius, an IT professional.
The chief reason, according to respondents who took the dipstick poll, for not having terrorism coverage, was lack of awareness on such policies. Barely 10 percent of the respondents were aware of which insurance companies offered terrorism coverage. Up till now, cover against terrorism has been offered mostly as an add-on with certain other investment products. However, more companies are now looking at rolling out policies for individuals as a stand-alone. ���LIC has launched a policy to compete with the fixed deposit plans that banks offer. It has been receiving good response,��� says an LIC agent in the city. ���The policy offers excellent options and professionals see it as very important in the present circumstances,��� he adds.
Arun James, employed at a leading IT company had all this while been fending off telemarketers and agents offering insurance policies. However, after the Mumbai attacks, he has been trying to get in touch with an insurance agent to get details of policies. ���I can���t believe that I am actually doing this. I was never affected by such incidents before. This may be a knee-jerk reaction but the fact that terror is an even more real thing now, does give one the jitters,��� says James.
As many as 12 cities, including Mumbai, have suffered acts of terrorism in the past seven months, and although Chennai hasn���t been directly affected, people are at their wits��� end. Georgina Pinto, a corporate trainer with an IT company, has cancelled her visit to the city and travel in general. ���It doesn���t seem like the best time to travel. Terrorists don���t need an auspicious time or day to strike. Although I am covered for acts of terrorism, I wouldn���t want to be caught in the crossfire,��� she quips.
Although the demand has risen, agents and authorities in the field don���t believe that the premiums for these policies will rise. ���Yes, demand is on the rise, but we are trying to make these packages as attractive as possible. The premiums haven���t been revised in the recent past and I don���t see it being revised any time now,��� says an agent.