AMI Insurance adds clause on terror attacks

AMI Insurance adds clause on terror attacks | Insurance Business

AMI Insurance adds clause on terror attacks
An Australian-owned insurance company has made clear its position with regards to paying for damages due to terrorist attacks.

AMI Insurance, owned by Australian conglomerate IAG since 2012, has added a clause to its car and contents policies stating that it would not pay out claims in the event of a terrorist attack, RadioNZ reported.

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The insurance giant said its other companies already had the clause, and the move was to ensure consistency across the organisation.

Insurance Council of New Zealand chief executive Tim Grafton told the publication there was good reason for the seemingly unusual clause.

“Metropolitan centres where there are houses, motor vehicles, contents, and the like, you can imagine this plane might be hijacked and crashed into a suburb and that would bring about a considerable loss - the insurers don’t provide the cover for that loss,” he noted.

State, Tower, AA, and Youi policies also do not cover acts of terror, the report said.

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