Insurance companies in Bahrain have begun offering war risk coverage for the first time following recent Iranian strikes targeting the kingdom, marking a significant shift as providers respond to growing concerns over geopolitical instability and its potential impact.
Industry experts say the introduction of such policies, which were once considered unnecessary in Bahrain, signals a new era of risk assessment.
War risk insurance is specialised coverage protecting against damage or loss caused by acts of war, usually due to missile and drone strikes or debris resulting from defensive interception.
Speaking to the GDN, Takaful International specialty lines and major accounts director Fajer Abdulaziz explained that it was ‘highly recommended’ for property owners as the insurance can protect them during times of uncertainty.
“Prominent buildings, strategically vital industries, large infrastructure construction projects and politically important establishments are usually the first ‘targets’ in the eyes of the enemy,” Ms Abdulaziz explained. “Hence, war cover is one insurance protection that owners should always consider.
“The risk of destruction from war was once thought unbearable for the insurance industry. However, the need for such a cover became prominent after the 9/11 attacks in the US.
“These days, it covers a wide spectrum of man-made perils including riot, civil commotion, sabotage, terrorism insurrection, civil war and war, but they must be purchased at extra cost.
“In Bahrain, we have a good number of residential and commercial buildings and shopping malls that have already purchased these policies.”
Ms Abdulaziz explained that while war insurance is recommended for property owners, including houses, factories, commercial buildings and shopping malls, she recommends different types of insurance for others.
“For individuals to have peace of mind, we recommend Life and Personal Accident (including Passive War Extension) covers along with Medical Insurance,” she added. “Human life is priceless and everyone should buy according to one’s purchasing power.
“It is never too late to go for a cover that may help in unpredictable and unprecedented situations. No insurance can replace the pain and suffering of an injury or death of a near one. But if you have insured your properties and yourself, you will feel financially secure.”
According to Dhaif Insurance Agency chief executive officer Leema Dhaif, the availability of war insurance provides a significant degree of reassurance and stability to people and business owners, although as a financial safety net rather than a preventative measure.
“Insurance for residential property such as houses and apartments against damage from missiles, drones or debris has become a viable option, providing peace of mind that homeowners can repair or rebuild,” she said. “Specialised products can cover not just the structure of a home, but also interior decoration and household items, helping families maintain some stability.
“For individuals operating businesses, war risk insurance provides coverage for damage to assets and emergency evacuation, allowing for a degree of operational continuity.
“The presence of established, top-tier companies offering these services, often supervised by national banks, increases trust in the reliability of the coverage.”
Ms Dhaif stated that a customer filing a war risk insurance claim must provide comprehensive evidence showing that the loss was directly caused by a covered war-related peril.
Essential proof includes documentation of ownership, detailed reports of the incident and visual evidence of the damage or loss.
She also warned that if you temporarily leave your home unattended during a conflict, your standard property insurance may not cover damage if the property is considered vacant for an extended period.
“Most homeowner insurance policies have a 30 to 60 day vacancy clause,” she said. “To maintain coverage, you may need to inform your insurer and obtain a vacancy permit.
“Contact your insurance provider immediately to inform them of your absence, check your policy’s vacancy clause, and ask about extending coverage or purchasing a vacancy endorsement.”
The cost of all policies often depends on risk assessment and coverage required and, as with all insurance, expert advisers suggest that people should study the market and discuss matters with their preferred and trusted insurer.
Meanwhile, Solidarity Bahrain has unveiled several initiatives designed to safeguard members’ physical and mental well-being and to ensure continued access to healthcare services, remote medical consultations and convenient medication delivery.
Counselling services will now be covered under medical insurance policies, providing policyholders and their families access to professional guidance during this period.
Coverage has also been expanded to include tele-consultation services offered by selected hospitals in Bahrain, enabling customers to consult with doctors remotely without visiting a healthcare facility.
nader@gdnmedia.bh
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