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Does insurance cover terrorism?

Despite the recent spate of terrorist attacks in the tourist centres of Spain and Sri Lanka, Australian travel insurers have not followed the example of some British travel insurers and altered their coverage. A Zurich Australia spokesman said travel insurance rates to troubled areas haven’t increased. “We do not have any problems covering tourists venturing to these areas of Europe and Asia.”

Some British travel insurers are refusing to cover medical claims for customers injured in the violence, unless the cover was purchased before civil strife began. The latest spate of terrorism in Spain was aimed at a local tourist resort, injuring about 13 tourists.

Some airlines and marine companies servicing Sri Lanka are understood to have raised their prices or cut services after insurance rates rose following the devastating suicide attack on Colombo’s international airport several weeks ago.