As Russia’s aggression against Ukraine rages on, innocent lives are being lost. Many Indians are still stuck in war-torn Ukraine. Around 700 Indian students remain trapped in Sumy as bombardment continues despite assurances of safe corridors.

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A 21-year-old medical student from Karnataka lost his life in a shelling event. Another was shot multiple times while he was trying to reach the border.

In such a situation, it is important to understand the coverage of life insurance policies.

Also read: Despite repeated urgings, no safe corridor for students stranded in Ukrainian city of Sumy: India tells UNSC

Life insurance cover during war

Life insurance companies are clear that death claims due to war will be accepted and there is no exclusion of it in the fine print of policies offered by the industry.

Tarun Chugh, MD & CEO, Bajaj Allianz Life, said, “In a situation of war, all life covers offered by our industry continue. There is no war exclusion clause that kicks in. The industry ensures that any claims arising due to such crisis or natural calamities are picked on priority and provide all the support the family members of the policyholder may require,” in a report by Moneycontrol.

Also read: Exclusive: Term policy premiums likely to rise by 15-25% across life insurance companies

However, the same may not be applicable to student travel insurance and other general insurance covers. For instance, in the Oriental Insurance’s overseas student policy, which is designed specifically for students pursuing studies abroad, it is stated that any loss, damage or liability that is indirectly or directly a consequence of war would be excluded from coverage.

Also read: 7 tips to stay safe while studying abroad

Residential status and life insurance cover

Life insurance policies purchased in India are valid globally. In case a person is visiting or staying in another country, the contract entered with the insurer is valid if the policy is in force and the premium has been paid. In case the policyholder dies with the same residency status as mentioned in the policy contract, then the insurance cover will remain effective.

Also read: 6 things to consider before buying a term life insurance

In case there is a change in residential status in the middle of a policy year, then the insurance company needs to be informed to make sure the policy remains active with no issues.

"For a short trip, a natural death is generally covered irrespective of where it occurs," Rakesh Goyal, Director, Probus Insurance, told The Economic Times.

What may not work and what is not covered?

Most term plans have one exclusion, that is the case of suicide by the policyholder. Some plans turn void if the suicide occurs in the first year of the policy irrespective of the reasons.

Some policies even list wars as an exclusion. It is advisable to carefully go through the fine print and terms and conditions of your policy.

Also read: Life insurance policies: Here are key exclusions that you must be aware of

“In some policies, war is listed as exclusion. That is because some insurance companies fear large claim settlements,” Naval Goel, Founder of PolicyX.com told Moneycontrol.

Other exclusion clauses mentioned in a term plan may include terrorism and natural disasters. But there is precedence of Indian insurance companies expediting claims during floods, earthquakes, and the recent pandemic too.

Also read: Importance of home and property insurance against natural calamities

The add-on covers that have been selected at the time of purchase of the policy may not be eligible due to exceptional circumstances of war. If the death happens in a war zone, then a personal accidental insurance may not work. Also, the add-on covers under the disability or death due to war clause may not be valid.

Also, group policies issued by banks may have war or war-like scenarios mentioned as an exclusion. Therefore, it is advisable to check the master policy to be assured. If there is no such exclusion clause mentioned as exclusion, then the claim would be valid.

(Edited by : Shoma Bhattacharjee)