Basic Travel Insurance excludes Terrorism

The recent MH17 tragedy where it was apparently shot down over the border of Ukraine and Russia leave questions if travel insurance covers acts of war and terrorism.  Unfortunately, unless specify to include terrorism and acts of war with additional premium, most general travel insurance does not include this.

Thus, in this MH17 incident, if investigation later proves that it is an act of wars or terrorism, basic travel insurance will not be claimable.  This is somehow similar to your general motor insurance, where it covers accidents, but not act of Gods or riots etc.  Nevertheless, additional coverage with extra premium can be added to include these coverage.

However, there is a multilateral air travel treaty known as the Montreal Convention of 1999, that stipulates that airlines are liable to pay damages of USD175,000 for each passenger killed or injured in any air accident, including act of war or terrorism.  Thus while it is sad that many innocents people are sacrificed in unfortunate incident, at least their families are compensated under the Montreal Conventional Treaty.