War and disaster losses ‘excluded’ from Bahrain insurance cover: Lawyer

TDT | Manama

Email: mail@newsofbahrain.com

War damage and other large-scale losses are usually left outside standard insurance cover in Bahrain unless the policy says otherwise in plain terms, lawyer Siddiqa Al Mawali said, urging people and firms to check the small print before relying on a claim.

Speaking to The Daily Tribune, she said the starting point in Bahrain, as in much of the world, is simple: losses caused by war, political unrest and military action are often excluded from cover.

“The general rule in the insurance sector, in Bahrain and in most countries, is that the risks of war, political unrest and military operations are treated as basic exclusions in insurance policies,” she said.

“This means insurance companies are not bound to pay for damage caused by such events unless the policy states in clear terms that they are covered.” She said many policyholders assume market oversight means insurers must meet every kind of claim. That is not how it works.

In her account, the first and last guide remains the contract itself.

“The insurance policy remains the main reference in deciding the scope of cover and the duties shared between the insurer and the insured,” she said. “Regulatory oversight does not in itself mean that insurance companies must cover every kind of risk.”

Rules In Bahrain, the sector falls under the Central Bank of Bahrain, which lays down rules meant to keep the market sound and to protect policyholders. Those rules cover risk management and financial solvency, with the aim of making sure insurers can meet claims that fall within the agreed cover.