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The 9/11 attacks on New York and the subsequent attacks on Madrid and London have made the potential consequences of terrorism clear to all. For this reason, the Belgian insurance sector and public authorities have devised a way of supplying you with the best possible coverage against such risks.
This joint approach led to the Law of 1 April 2007 on insurance against damage caused by terrorism. This law was scheduled to come into force as of 1 May 2008.
For this purpose, insurers founded a non-profit organisation: ASBL/VZW TRIP (Terrorism Reinsurance and Insurance Pool). This organisation is intended to cover the consequences of a terrorist act in accordance with the guarantees supplied by its members (insurance companies). The insurance companies share the claims costs between each other and a solidarity mechanism guarantees extra protection by grouping together the resources of the insurance sector and the Belgian State. In the event of a terrorist act, the members (insurance companies) will first support each other so as to be able to compensate insured parties who are victims of the act. If the cost of the claims is very high, the Belgian State also provides assistance.
Through this cooperation, it has been possible to release
€ 1 billion per year (indexed) to fund compensation of claims generated by terrorist acts. Should the total amount of the claims exceed this sum, the compensation paid out is reduced accordingly.
ASBL/VZW TRIP enables your insurance policies to cover the consequences of terrorist acts more effectively. The risk that a terrorist act may jeopardise your insurance company, so that it may no longer be able to supply coverage in the future, has been considerably reduced.
The law stipulates that a number of insurance policies must cover injury/damage caused by terrorism: workmen’s compensation insurance, TPL motor vehicle insurance), civil liability fire and explosion insurance for public venues, fire insurance for simple risks (e.g. homes and small businesses), accident insurance, hospitalisation insurance and life insurance.
As far as other types of insurance are concerned, companies may decide whether or not to provide terrorism coverage. However, should they wish to exclude such coverage, they must do so explicitly.
To find out whether you are covered, contact your insurer or insurance broker.
You will find answers to many of your questions in the FAQ section.