Terrorism Insurance

IRDA has created a common pool for Terrorism insurance.
Gen Insurance Cos route the premium to the common pool & settle claims.
Any Public &/or 3rd party liability insurance cover should contain terrorism as a n add on benefit in their policies.

Insurance Company must assess a property's valu its structure & all its contents.
On or many Gen. Insurance Cos. togetrher can propose to cover property against terror.
Insurance agreeement should clearly specify & list all types of terrorism acts in Policy documents.
Individuals are covered for terror-relatd accidnts with PA Cover.
Specific terror covers are being launchd as group schmes with limitd benefits & cheaper costs.Corpus initially of 200 Cr is now 1,200 Crores.If a catastrophe strikes, 1200 cr. is not adquat.
Premium rates for 3rd party insurance have hardened by 30%. for all 3rd party policies.
Terror cover is not included in PA cOVER BUT NOT EXCLUDED EITHR.mODIFICATIONS ARE NOT ALLOWED MID-WAY.

funding terror :

small funds neded to push ideology of terror.

yaer & place people killed estimated cost
2002 , bali, indonesia 202 $ 30,000
2003,jakarta 12 $ 30,000
9/11 attacs in usa 2,819 $ 250,000-300,000

SOURCES OF TERROR FUNDING :
FOREIGN GOVTSCHARITABLE ORG
FIN. MARKETS
LEGITIMATE BUSINESS VFRONTS
AVRIOUS FORMS OF INTL TRADE
CRIMINAL ACTIVITIES SUCH AS EXTORTION, PROSTITUTION RINGS, VIDEO PIRACY , DRUG TRAFFICKING

INDIAN SAFEGUARDSPREVENTION OF MONEY LAUNDERING ACT PMLA , 2002

FIN. INTELLIGENC UNIT ST UP IN NOV. 2004

RBI , SEBI , IRDA HAVE ANTI-MONEY LAUNDERING ACTS & KNOW YOUR CUSTOMR GUIDELINS.
BANKS , FIS HAV TO REPORT CASH-TRANSACTIONS INVOLVING MORE THAN RS. 10 LAKHS,FORGED OR COUNTERFIT CURRENCIES & OTHR SUSPICIOUS TRANSACTIONS

CHINKS IN THE ARMOUR
TOO MANY TRANS. BEING ROUTED THRO' FIU
BANKS & FIS MAY B LAX SOMETIMES IN FOLLOWING GUIDELINES.


HOW OTHER ECONOMIS FOUGHT TERROR

9/11 DEVASTATION

30% LOWER MANHATTAN PLACE LOST
2,0,000 JOBS GONE
$16 bIL ASSETS RUINED
5% ANNUAL gdp OF usa LOST
INS. INDUSTRY LOST $30 BIL
CLKAIMS OF 40 BIL
AIR-SERVICES CUT-BACK 20%
100,000 LAYOFS
US AIRWAYS FILED FOR BANKRUPTSY
HOTELS VACANCY SURGED
GROS CITY PRODUCT OF NEW YORK SHRUNK $ 27.3 BIL
TAX LOSES $ 3 BIL