Do term life insurance war exclusions cover civilian death? Find out the answer and how to protect yourself during such uncertain times.
When a country faces geopolitical tensions or an ongoing conflict, it’s natural for people to worry about the impact on their lives, including their financial security. For those with term life insurance, a common concern is whether a death due to war or war-like situations will be covered under their policy. This is particularly important for civilians, as they are often indirectly impacted by the chaos of war, even though they aren’t directly involved in military actions.
In this blog post, let us explore the key aspects of war exclusions in term life insurance policies and clarify whether civilian deaths due to war are covered. Let’s break down this complex topic by looking at common policy exclusions across Indian insurers and understanding the risks involved.
Are Term Life Insurance War Exclusions Valid for Civilian Death?
Term life insurance policies typically offer a straightforward benefit: in the event of the insured person’s death, the nominee will receive a sum assured. However, like most insurance contracts, term policies come with exclusions — situations in which the insurer will not pay out a claim.
One of the most common exclusions in life insurance policies is death due to war or war-like situations. But how do these exclusions work for civilians, and what exactly do insurance companies mean by “war” in these contexts?
Most life insurance policies, including those from well-known Indian insurers like LIC, HDFC Life, ICICI Prudential, SBI Life, and others, explicitly exclude death resulting from war or war-like situations.
As per the standard exclusion clause in LIC’s Tech Term policy document,
“The Corporation shall not be liable to pay any death claim if the death of the Life Assured is caused directly or indirectly by or resulting from war, invasion, act of foreign enemy, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, or military or usurped power.”
This exclusion can be interpreted to mean that any death caused by a situation involving armed conflict, war, terrorism, civil commotion, or similar circumstances will not be covered under the policy, whether the individual is a civilian or a member of the armed forces.
Please take note of these two important points here.
The term “war” usually refers to an organized conflict between states or parties, but the exclusion also includes civil war, terrorism, and rebellion.
The clause is broad and comprehensive, applying to both civilian deaths as well as those related to military operations.
Why Are War-Related Deaths Excluded from Term Insurance?
The reasoning behind this exclusion is primarily based on the risk factors associated with war or conflict situations. Insurance is typically designed to protect individuals from unpredictable but insurable risks. Events like war, terrorism, and civil strife are catastrophic, wide-ranging events that are often seen as uninsurable.
Here are a few reasons why insurers usually exclude war-related deaths:
- High Risk of Mass Casualties: Wars and conflicts can cause widespread destruction, leading to significant casualties that insurance companies may find financially unsustainable to cover.
- Unpredictability: The nature of war is often unpredictable, and its effects can extend beyond traditional accidents, including factors like national security, military actions, and civil unrest.
- Excessive Losses: Insuring against war can expose insurers to enormous liabilities due to the large-scale death tolls and destruction.
Do War-Related Exclusions Apply to Civilians?
Yes, civilian deaths due to war are generally excluded under the terms of most Indian term life insurance policies. While the first part of the exclusion often focuses on military personnel (especially those directly engaged in military operations), the second part applies to all insured persons — including civilians.
Example of Common Exclusions for Civilians:
- Death due to bombing, airstrikes, or missile attacks during a conflict.
- Death caused by terrorist activities, which are often part of war-like scenarios.
- Injury or death during civil unrest, rebellion, or revolution.
Even though civilians are not actively involved in combat, they can still be directly impacted by the consequences of war. Therefore, under most policies, these deaths are excluded from coverage.
Are There Any Exceptions to the War Exclusion?
In some special cases, insurers may make exceptions to the war exclusion, especially if the death is incidental to war rather than a direct result of it. For example:
- If a civilian dies in a non-combat situation (such as a traffic accident caused by a bomb blast during a conflict), some insurers may consider paying the claim.
- Accidental deaths resulting from war-like conditions might still be covered under accidental death benefit riders if the rider is separately purchased and doesn’t include exclusions for war.
However, these exceptions are rare, and the general rule remains that death due to war-related incidents is not covered.
Here’s a quick look at how some major Indian insurers treat war-related exclusions in their term life insurance policies:
| Insurer | War Exclusion Clause | Death Due to War (Civilians) |
|---|---|---|
| LIC | War, invasion, terrorism, civil commotion, rebellion, etc. | Not covered |
| HDFC Life | War, terrorism, civil commotion, rebellion, military actions, etc. | Not covered |
| ICICI Prudential | War, civil commotion, terrorism, hostilities, military or usurped power | Not covered |
| SBI Life | War, rebellion, terrorism, civil war, hostilities | Not covered |
| Max Life Insurance | War, invasion, terrorism, hostilities | Not covered |
As you can see, almost all major insurers have the same exclusion when it comes to death due to war.
Conclusion – To summarize, death due to war is generally excluded under term life insurance policies in India — even for civilians. While war may be an unpredictable and uncontrollable event, insurers typically deem it an uninsurable risk. Therefore, civilian deaths resulting from war, whether caused by airstrikes, bombings, or terrorist activities, are usually not covered.
If you are concerned about the risks associated with such events, it’s advisable to:
- Review your policy exclusions carefully.
- Consider additional coverage like accidental death benefit riders, which might offer some level of protection in cases of terrorism or accidents during conflict situations.
Disclaimer: The above article is based on the general information available in policy documents of various insurers. However, in a real-life situation such as war, the government may intervene and direct insurers to honor claims, or insurance companies might choose to settle them on humanitarian grounds. Still, I strongly recommend reviewing your individual policy document for specific exclusions and clarity.