Terrorism Insurance Rates in India — 2025 (Detailed Comparison)

Summary: The Indian Market Terrorism Risk Insurance Pool (IMTRIP) introduced revised terrorism premium rates effective 1 April 2025. Below you’ll find a detailed, slab-wise comparison between the new 2025 rates and the old rates (till 31 March 2025), plus plain-language explanations, examples, and an FAQ.

1. What is terrorism insurance and who needs it?

Terrorism insurance is an add-on cover that protects against property loss or damage caused by terrorist attacks. It is usually added to:

• Fire Insurance policies (Standard Fire, Industrial All Risk, Mega Risk)
• Engineering Insurance (Contractors All Risk, Erection All Risk, large projects)
• Property Insurance (residential homes, shops, offices, hotels, schools)

2. How are premiums calculated?

Premiums are based on:

• Property type – Residential / Non-Industrial (shops, offices) / Industrial (factories, projects)
• Total Sum Insured (TSI) – the value of property insured. Rates are in per mille (per ₹1,000 insured). Higher TSI means lower per-unit cost.

3. New terrorism premium rates (Effective 1 April 2025)

TSI Slab (₹ Cr)	Residential	Non-Industrial	Industrial
Up to 500	0.07	0.13	0.21
500 – 1000	0.07	0.13	0.18
1000 – 1500	0.07	0.11	0.18
1500 – 2500	0.04	0.11	0.13
2500 – 5000	0.04	0.09	0.09
5000 – 10000	0.04	0.07	0.07
Above 10000	0.04	0.05	0.05

4. Old terrorism premium rates (Till 31 March 2025)

TSI Slab (₹ Cr)	Residential	Non-Industrial	Industrial
Up to 500	0.08	0.15	0.23
500 – 1500	0.08	0.15	0.20
1500 – 2500	0.05	0.12	0.15
2500 – 5000	0.05	0.10	0.10
5000 – 10000	0.05	0.08	0.08
Above 10000	0.05	0.06	0.06

5. Key differences (old → new)

Residential: 0.08 → 0.07 (further down to 0.04 for large sums)

Non-Industrial: 0.15 → 0.13 (down to 0.05 for very large risks)

Industrial: 0.23 → 0.21 (down to 0.05 for mega projects)

6. Examples

Home (TSI ₹5 Cr): Old ₹40,000 → New ₹35,000 (save ₹5,000)

Office (TSI ₹100 Cr): Old ₹15 lakh → New ₹13 lakh (save ₹2 lakh)

Factory (TSI ₹200 Cr): Old ₹46 lakh → New ₹42 lakh (save ₹4 lakh)

Mega Project (TSI ₹5,000 Cr): Much lower premium under slab rates in 2025 vs old structure.

7. FAQ – Terrorism Insurance Premiums (2025)

Q1: Do I need terrorism insurance for my home?

Yes. Very low cost (₹70 per crore insured under new rates) but gives protection against catastrophic events.

Q2: Are rates the same across insurers?

Yes. IMTRIP pool rates apply uniformly to all insurance companies.

Q3: Can I cancel my old policy to get new rates?

No. Policies issued before 1 April 2025 cannot be cancelled or reissued for lower rates.

Q4: Which properties pay the highest premium?

Industrial risks (factories, plants, projects) — but large projects benefit from sharp slab reductions.

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Disclaimer: Information is for general awareness. Please consult your insurer or broker for exact premium calculations and policy terms.