Recent cases have seen attackers hiring cars for use in terror plots.
Could your next insurance renewal include a terrorist premium? It seems that new insurance industry plans could lead that way, with news that motor insurers in the UK have agreed between them that the Motor Insurance Bureau should handle and pay claims from victims involved in terrorist attacks where vehicles are used as weapons.
The move will primarily affect rental agencies, where recent high-profile terrorist events in the UK have seen attackers renting cars to use against members of the public.
The British Vehicle Rental and Leasing Association, which is the UK trade body for rental and leasing companies, has welcomed this latest move. “We are delighted that the motor insurance market has agreed to mutualise this risk instead of leaving individual insurers to carry the risks associated with motor claims arising from terrorist attacks,” said BVRLA chief executive Gerry Keaney.
“This provides much needed reassurance for the vehicle rental industry where operators were finding it increasingly difficult to secure cover. We are very grateful to the MIB for their collaborative approach to this challenging issue.”
The BVRLA said that the need to mutualise terrorism risk was one of five priorities that were outlined in its recent report “Vehicles as weapons: a threat and policy assessment for the UK vehicle rental sector”. In it, the association also called for the government and security services to introduce other measures that would see them working together with insurers and rental companies to reduce security risks and avoid future attacks.
“We will continue to liaise with our members, government and law enforcement organisations on ensuring a collective, coordinated and proportionate response to the issue of vehicle as weapon terrorist attacks,” added Keaney.