IUA publishes motor terrorism clause

Following a spate of terrorist attacks using vehicles, the International Underwriting Association developed a new model clause for clarifying motor terrorism coverage.

Concern over the potential scale of liabilities that could be incurred through the unlimited cover for bodily injury was a major concern for motor reinsurers and led to a review which culminated in the Motor Insurance Bureau agreeing to mutualise these risks and provide compensation for victims of vehicle-related terrorist events.

The new IUA clause (reference: IUA 02-025) clarifies the position by making available a model exclusion of losses from acts of terrorism for ordinary motor policies.

Chris Jones, director of Legal and Market Services at the IUA said: “A number of tragic attacks in the UK and elsewhere illustrated possible circumstances which could overwhelm the market and leave members of the public without adequate cover or compensation.

“IUA members liaised with the Motor Insurance Bureau as a solution to the problem was developed. Our new clause acknowledges the role that it will now play to help ensure innocent victims are able to receive the full compensation they deserve, in a way that is manageable for the reinsurance market.”

    Share Story:

Recent Stories

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021