Minister wants insurance companies to reconsider terrorism exclusion clauses

Walter Noel, Minister of Government Services and Lands, says insurance companies should not require terrorism exclusion clauses in homeowner policies.

Minister Noel said: "The Canadian Council of Insurance Regulators is currently discussing the matter with the Insurance Bureau of Canada. Insurance companies should at least wait for the conclusion of these discussions before initiating such change.

"Current insurance law allows for the exclusion of coverage for acts of war, but it is questionable whether this includes terrorism. Terrorism is not necessarily war. Why should homeowner policies not protect against acts of terrorism? Losses resulting from acts of terrorism could be devastating if not covered by insurance."

Canadian insurance regulators are holding discussions with the insurance industry to determine how consumers can be best protected.

Media contact: Rick Callahan, Director of Communications, (709) 729-4860.

2002 10 24                                       11:30 a.m.