Life insurers will pay legitimate claims in life insurance policies linked to the Bali bombings, despite terrorism exclusions. That’s the promise of the Investment and Financial Services Association (IFSA), which says the life insurance industry is “committed to honouring all commercial contracts and paying legitimate claims”.

“The Australian life insurance industry is working with the individuals affected by these events to ensure that the terms and conditions of individual contracts are honoured,” IFSA CEO Richard Gilbert said.

“Unlike car or house insurance, once an individual has purchased a life insurance policy the insurance company cannot cancel or change the terms of the contract. This being the case, we would not expect to see claims under existing policies disallowed due to acts of terrorism.”

Mr Gilbert said individuals wanting to make claims should contact their life insurer.