The term “terrorism” comes from the French word terrorisme, which is based on the Latin verb terrere (to cause to tremble). It dates back to 1795 when it was used to describe the actions of the Jacobin Club in their rule of post-Revolutionary France, the so-called “Reign of Terror”. Jacobins are rumored to have coined the term “terrorists” to refer to themselves. Terrorism refers to a strategy of using violence, social threats, or coordinated attacks, in order to generate fear, cause disruption, and ultimately, brings about compliance with specified political, religious, or ideological demands. Terrorism refers to a strategy of using violence, social threats, or coordinated attacks, in order to generate fear, cause disruption, and ultimately, brings about compliance with specified political, religious, or ideological demands. The European Union includes in its 2002 definition of “terrorism” the aim of “destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country.
Section 3(a) Defining terrorist act- Whoever with the intent of threatening the unity, integrity, security and sovereignty of India or strike terror in the minds of people or any section of the people does any act or thing by using dynamite or explosive substances or inflammable substance or firearms or other lethal weapon or poisonous or noxious gases or other chemical or any substance of a hazardous nature in such a manner as to cause death or injuries to any person or loss or damage to property or disruption of any supplies or services essential for life.
To overcome from the pool of terrorist attack and to have an effective control over it laws have been made to safeguard the citizens around.
1. The need of POTA.
It is normally said that terrorism is a low intensity war. But the loss, which our country has suffered in the last two decades due to the rise of terrorist activities, has been on a very large scale. This country has fought four high intensity wars and in those wars we have lost more than 6000 people. We have already lost more than 70000 civilians. In addition, we have lost more than 9000 security personnel. Almost six lakh people in this country have become homeless as a result of terrorism. Outside the expenditure on our armed forces, merely for maintaining the entire set up to fight insurgency, to fight cross-border terrorism, the economic cost itself has been Rs 45000 crore. The budgetary increase itself in the last 15 years, because of terrorism or anti-insurgency activities, has been 26 times. We have no record of the explosives that have been used in various parts of the country. We have a record of crime. But the explosives that have been confiscated by our security agencies weigh 48000 kilos. If our security forces had not been vigilant enough to confiscate these explosives, they would probably have been enough to take care of every inch of Indian soil.
2. The Unlawful Activities (Prevention) Act 1967
The UAPA was designed to deal with associations and activities that questioned the territorial integrity of India. When the Bill was debated in Parliament, leaders, and cutting across party affiliation, insisted that its ambit be so limited that the right to association remained unaffected and that the executive did not expose political parties to intrusion. So, the ambit of the Act was strictly limited to meeting the challenge to the territorial integrity of India. The Act was a self-contained code of provisions for declaring secessionist associations as unlawful, adjudication by a tribunal, control of funds and places of work of unlawful associations, penalties for their members etc. The Act has all along been worked holistically as such and is completely within the purview of the central list in the 7th Schedule of the Constitution.
3. LEGAL DEVELOPMENTS - POST 26/11: THE UAPA BILL (2008)
- The UAPA Bill defines what constitutes terror acts intended to threaten the unity and sovereignty and to cause terror in people by using bombs, dynamites or other explosive substances or lethal weapons or poisonous gases or chemicals, including biological, radio-active and nuclear.
- Under the UAPA Bill, detention of an accused can extend up to 180 days and no accused can be given bail without the prosecution being heard.
- Foreign nationals who have entered the country illegally and unauthorized and are accused under this law, shall be denied bail.
- The courts shall draw a refutable adverse presumption of offence against the accused if there is definite evidence through seizure of weapons and explosives from him.
- It also provide for freezing, seizing and attaching funds and other financial assets or economic resources held by individuals or entities engaged in or suspected to be engaged in terrorism.
4. Constitution of National Investigation Agency THE NATIONAL INVESTIGATION AGENCY BILL (2008)
The NIA Bill that will have concurrent jurisdiction empowers the Centre to decide what constitutes terror and investigate such attacks in any part of the country; It covers offences including challenge to country’s sovereignty and integrity, bomb blasts, fake notes, narcotics, hijacking of aircraft and ships and attacks on nuclear installations; The measures also provides for constituting special courts to try offences under the NIA Bill and to provide for summary trial.
II Insurability risk of public companies towards patrons:
There are certain liabilities of companies towards its patrons who avail its facility. While patrons avail benefits from the service providers they believe in them to provide the sense of security if any as such unseen or unforeseen event takes place.
Force Majeure literally means “greater force”. These clauses excuse a party from liability if some unforeseen event beyond the control of that party prevents it from performing its obligations under the contract. Typically, force majeure clauses cover natural disasters or other “Acts of God”, war, or the failure of third parties–such as suppliers and subcontractors–to perform their obligations to the contracting party. It is important to remember that force majeure clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party. When negotiating force majeure clauses, make sure that the clause applies equally to all parties to the agreement–not just the licensor. Also, it is helpful if the clause sets forth some specific examples of acts that will excuse performance under the clause, such as wars, natural disasters, and other major events that are clearly outside a party’s control. Inclusion of examples will help to make clear the parties’ intent that such clauses are not intended to apply to excuse failures to perform for reasons within the control of the parties. Terrorist activity or any such unforeseen activity cannot be pre judged accurately before time but as we know our “GATEKEEPER OF NATION” that can be considered as judiciary has given us benefit to overcome from it in its own shuttle ways. Also giving aid to the unpredictable sufferer some aid. Hereby in this write-up its not only focusing on who are indemnifier and indemnity holder of insurance but also how much amount is given in case any mishap happens.
1. Insurable risk:
What does it mean to say that a particular risk is insurable? This question must be addressed from the vantage point of the potential supplier of insurance who offers coverage against a specific risk at a stated premium. The policyholder is protected against a pre-specified set of losses defined in the contract. Two conditions must be met before insurance providers are willing to offer coverage against an uncertain event. Condition 1 is the ability to identify and quantify, or estimate, the chances of the event occurring and the extent of losses likely to be incurred. Condition 2 is the ability to set premiums for each potential customer or class of customers. This requires some knowledge of the customer’s risk in relation to other potential policyholders. If Conditions 1 and 2 are both satisfied, a risk is considered to be insurable. But it still may not be profitable. In other words, it may be impossible to specify a rate for which there is sufficient demand and incoming revenue to cover the development, marketing, operating, and claims processing costs of the insurance as well as yield a net positive profit over a prescribed time horizon (e.g. five years). In such cases the insurer will opt not to offer coverage against this risk.
Condition 1: Identifying the Risk
To satisfy this condition, estimates must be made of the frequency of specific events and the extent of losses likely to be incurred. Such estimates can use historical data and/or scientific analyses. One way to reflect what experts know and do not know about a particular risk is to construct a loss exceedance probability
Condition 2: Setting Premiums for Specific Risks
Once the risk has been identified, the insurer needs to determine how much coverage to offer and what premium to charge so as to make a reasonable profit while not subjecting itself to an unacceptably high chance of a catastrophic loss. There are a number of factors that influence these decisions. Hereby it’s assumed that insurers are free to set the premiums at any level they wish.
2. Transferring Risk: Institutional Arrangements and Interested Parties
In the current debate on terrorism insurance, it is important to examine the roles of the key interested parties concerned with the risk. They include insurers who provide direct protection to individuals and firms, reinsurers and the capital markets who protect the insurer against catastrophic losses, and rating agencies, regulators and lenders who are concerned with measuring the solvency and financial stability of either those supplying protection against the risk or those who are at risk.
a). Insurers
Insurers provide financial protection to those facing the risks of potentially large losses from events covered by a policy (e.g., fire, earthquake, terrorist attack).They do this by charging a relatively small amount (“premium”) compared to the potential damage suffered by the insured, and in return agree to pay all or a portion of the financial losses incurred from a covered event.
b). Reinsurers
Reinsurers provide protection to private insurers in much the same way that insurers provide coverage to their policyholders, with a focus on providing protection against the catastrophic portion of a loss that insurers would not want to cover themselves. In this type of arrangement, the reinsurer charges a premium to indemnify an insurance company against a layer of the catastrophic losses which the insurer would otherwise be responsible for covering.
c). Brokers
Brokers link those demanding financial protection with those who supply coverage.The broker can facilitate transactions between firms who would like to buy insurance and those who are willing to offer policies. Similarly, the broker can bring together insurers who want coverage against catastrophic events and reinsurers who are in the business of providing this protection.
d).Capital Markets
Capital markets have emerged in the 1990s as a complement to reinsurance for covering large losses from natural disasters through new financial instruments, some of them known as catastrophe bonds or cat bonds.
Companies should now buy Terrorism Coverage
There are several possible explanations for the increased portion of firms. Surveyed that now buy some type of insurance coverage against terrorism. We highlight five of them below.
1. New alerts and successful attacks. Another factor that may have led to increased purchase of terrorism insurance is the series of alerts released by the federal government in the last few years. For example, there have been several severe alerts of terrorist groups seeking to attack financial centers in New York and Asians. Moreover, successful attacks against countries allied to the united states (such as Mumbai and Bangalore) have made it clear that the threat of terrorism remains very real.
2. Requirement by banks. Another fundamental driver of terrorism coverage in specific industries, such as real estate, has been the requirements by lenders and some rating agencies for terrorism coverage, especially in high risk areas. banks often require terrorism insurance coverage as a condition for loans and mortgages to protect their own financial interests.
3. Occurrence of other catastrophes. In the last few years, many countries have experienced extreme events from sources other than terrorism. These other events have certainly kept the question of financial protection against catastrophes at the top of the agenda of many decision-makers in the private sector.
4. D&O liability. In the current sarbanes-oxley environment, many executives are likely to prefer buying insurance rather than exposing themselves to the risk of being sued for negligence should their firm be the target of a terrorist attack. For this reason, terrorism insurance is often required as part of director’s and officer’s (d&o) coverage.
Insurance of Terrorism Risk in Indian Market the Past and the Present:
Until 2001, Indian & most other markets routinely covered most terrorism risk under fire policies. The exposures were considered manageable and no separate pricing or understanding was considered necessary. The Polices also did not provide any precise definition of what constitutes a terrorist event. In fact, following 9/11, there was, for some time a debate whether terrorist attack could be construed as an .act of war.Enabling insurers to rely on the relevant exclusion in the Policy. The issue was quickly settled but in view of general fear and high exposures, reinsurers decided to exclude this risk as uninsurable. In India, the market continued to offer limited covers against terrorism risk but decided to put a small price for it. The Global Face of Terrorism Insurance Worldwide, many initiatives have been taken to broaden terrorism insurance supply and redefine insurability the emerging trends are:
1. Capacity building - New terrorism Insurance capacity has emerged since 2001, as the market wanted to take advantage of increased requirement and hardening of price.
2. New financial market instruments – Capital markets offer broadly two alternative risk management solutions:-
a. Alternative risk financing: generally aims at securing availability of funding in case of a disaster loss.
b. Alternative risk transfer instruments. Entails shift of all or part of the financial burden.
The second alternative is thus more akin to conventional insurance contracts. However, towards an integrated risk management strategy, both can be jointly used to optimize the benefits. Recourse Discussed We must, however, reckon here that we still have a long way to go in developing reliable financial market tools; it would be difficult to develop sustainable risk-linked securities market, more so owing to high level of uncertainty & ambiguity that affects modern day terrorism risk. As long as reinsurers themselves, with their long experience in the coverage of large catastrophic risks prove reluctant to cover large terrorism risk exposures due to difficulty in quantifying and pricing such risks, the ART solutions to terrorism risk is likely to remain low
v Mumbai attack (TAJ & Oberoi-Trident Insurance claim: can be seen as a glance.
The terrorist strike in Mumbai from the night of November 26, 2008 to the morning of November 29, 2008, has sent a shiver right across the world not just because it was spectacular, but because there was a fearsome brain, which had conceptualized the entire operation, planned it to the minutest details and had it carried out through remote control from Pakistan with the help of not more than 10 terrorists. There might have been many, many more terrorists involved in various peripheral roles such as intelligence collection, reconnoitering, logistics etc, but the core group, which carried out the strike, was not more than 10 in number, but it managed to have an important corner of Mumbai, India’s financial capital, under its control for more than 48 hours. A force of nearly 600 men of the Mumbai Police and the National Security Guards was required to eliminate this small group of 10.
Under terrorism insurance rules, insurers don’t have to pay for the material damage caused by security forces, but only for that caused by terrorists; they have to, however, cover the loss to business caused by the attacks. “There was a meeting of all general insurers with the (national reinsurer) GIC (General Insurance Corp. of India) where it was decided that all the losses, whether caused by terrorists or security forces, will be covered through the terrorism pool,” There is some relief for the establishments; both are adequately insured and the Indian terrorism insurance pool has advanced Rs 25 crore each for claims from the Oberoi and the Taj following the 26/11 attack. The insurance package covers property damages, business interruption, public and employers’ liability.
The terrorism pool covers only the property damage and all companies have different polices. So personal accidents and individual deaths are taken care of under the personal accident policy. The hotels have their separate liability policies and that policies will contribute for personal liabilities. The terrorism pool is only for the property damage and consequential loss arising out of that. Though there is no official communiqué on the extent of the damage that the Taj Mahal Palace & Tower has suffered, it is estimated to be about Rs 500 crore. The maximum cover under terror insurance is Rs 700 crore but the total pay-out to the Taj and the Oberoi will depend on the assessment of damage by the insurers. The Taj Mahal Palace & Tower contributes Rs 300 crore to the Taj Group’s annual turnover of Rs 1,823 crore and the Oberoi-Trident brings in Rs 665 crore to the Oberoi Group’s turnover of Rs 1,478 crore.However, irrespective of who issues the policy, terrorism claims are settled from a common pool managed by the state-run General Insurance Corporation. Both the Taj and the Oberoi have been unwilling to reveal business losses but the Mumbai properties contribute significantly to the revenues of both hotel chains.
The Trident complex has a total insurance cover of Rs1,430 crore, but the cost of damage is still being assessed. Tata AIG General Insurance Co. Ltd is the leading insurer for the Taj Mahal Palace and Tower; ICICI Lombard General Insurance Co. Ltd and IFFCO Tokio General Insurance Co. Ltd. are co-insurers. Cover against terrorism is typically offered as an add-on with property insurance that, along with material loss, also covers loss of business till the property is restored. For terrorism cover, Indian companies pay a premium of 22 paise per annum for every Rs1,000 insured up to Rs500 crore, 17 paise for every Rs1,000 insured up to Rs2,000 crore and 13 paise for every Rs1,000 insured above Rs2,000 crore.. But there’s something that no insurance cover can protect. The Mumbai terror attacks have compounded the problems faced by for slowdown hit Indian travel and tourism industry. It has resulted in cancellations of trips and room bookings. Taking a view at an international scenario and national when an such activity characterized under Force Majeure
v Insurance claimed in 9/11 attack u.s
USA PATRIOT Act: “Acts dangerous to human life that are a violation of the criminal laws of the United States or of any state”.
Since its passage following the September 11, 2001 attacks, the Patriot Act has played a key part and often the leading role in a number of successful operations to protect innocent Americans from the deadly plans of terrorists dedicated to destroying America and our way of life. While the results have been important, in passing The Patriot Act, Congress provided for only modest, incremental changes in the law. Congress simply took existing legal principles and retrofitted them to preserve the lives and liberty of the American people from the challenges posed by a global terrorist network. Congress passed the USA PATRIOT Act in response to the terrorist’s attacks of September 11, 2001. The Act gives federal officials greater authority to track and intercept communications, both for law enforcement and foreign intelligence gathering purposes. It vests the Secretary of the Treasury with regulatory powers to combat corruption of U.S. financial institutions for foreign money laundering purposes. It seeks to further close our borders to foreign terrorists and to detain and remove those within our borders. It creates new crimes, new penalties, and new procedural efficiencies for use against domestic and international terrorists. Although it is not without safeguards, critics contend some of its provisions go too far. Although it grants many of the enhancements sought by the Department of Justice, others are concerned that it does not go far enough.
The attack on the World Trade Center led to huge insurance claims, with many insurance companies throughout the world having to disclose the impact of the attack in their financial statements. In April 2004, a U.S. District Court jury rejected claims by World Trade Center leaseholder, Larry Silverstein, that two planes hitting the Twin Towers should, within the terms of his insurance policies, be considered two separate incidents, which would have entitled him to $7 billion in insurance reimbursements. The insurers, Swiss Reinsurance Co. and others, initially argued successfully that the attacks in New York were one incident and that Silverstein was only entitled to $3.5 billion. In December 2004, a federal jury decided that the September 11 attack on the World Trade Center was, for insurance purposes, two occurrences, which mean that Silverstein stands to collect up to $4.6 billion.
The US Terrorism Risk Insurance Act 2002 is a case in point. The Act which came into force shortly after the 11th September, 2001 attack requires private insurers to partner with Government to offer some coverage up to a predetermined level and gives insurers 90 days to provide quotes for additional premium covering terrorism risks. Some of the specific provisions of the legislation are as follows:-
§ An event must cause at least US $5 million aggregate property and casualty insurance losses to by certify by the Secretary of State as an act of terrorism.
§ The bill is limited to International terrorism committed on behalf of any foreign or foreign interest on US; Soil damage to air carrier or vessel outside the US; or to the premises of US mission is covered by TRIA.
§ Each participating insurer is responsible for paying out however a certain amount in claims a deductible- before the Federal assistance becomes available.
§ For losses above the company’s deductible, the Federal Government will cover 90% with the insurer 10%.
§ The aggregate insurance industry retention in 2004 was US $ 12.5 billion and US$ 15 billion in 2005.
§ Losses covered by the programmer are capped at US$ 100 billion.
§ Lines excluded from the programmer are: Personal Lines, assumed reinsurance, Federal Crop, Mortgage Guaranty, Financial Guaranty, Medical Malpractice, Flood Insurance, Life and Health. The Act sunsets after three years on December 31, 2005.
v Insurance claimed :fire instance at Jamnagar:
Reliance Industries Ltd was reported to have claimed Rs 120 crore in 2001 when the Jamnagar plant was damaged by the Gujarat earthquake. Pipelines, equipment and civil works had been damaged and the plant remained shut for two weeks. In early years, insurance companies paid around $355 million (around Rs 1,604 crore) as claim against the fire that damaged an ONGC rig. The Jamnagar fire may not result in the hardening of reinsurance premium. For re-insurers the cause of the fire would be crucial - whether it was due to poor maintenance or an accident. The size of the insurance market for onshore oil risks is estimated at around Rs 250 crore in terms of premium.
v Insurance claimed :Liberty cinema and satyam Cineplex:
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The screening of the much controversial Hindi movie, ‘Jo Bole So Nihal’ Delhi’s two theatres Satyam Cineplex and Liberty Theatre faced explosions, resulting in the death of one and injury to another 56 cinema goers. Neither theatre had, however, taken public liability cover. |
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This means that should cinema goers decide to sue the management, they will not have any recourse to insurance claims of legal nature. |
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Satyam Cineplex was insured against terrorist attack. The Delhi-based multiplex which fell prey to a powerful bomb blast, had taken insurance cover from Bajaj Allianz General Insurance Company. Since Satyam Cineplex owners had opted for terrorism cover, should the police decide to declare the bombing as a terrorist attack, Bajaj Allianz is liable to pay the claims. Liberty, which also witnessed an explosion on same night, is understood to have not been insured. Thus did not receive any claim for insurance. |
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Increasingly, multiplexes in the country are being insured against fire and allied perils, as well as terrorism. “The size of the claim depends upon the surveyor’s findings following the bombing,” |
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PVR cinema: PVR (PVR) is engaged in running cinema exhibition multiplexes. It was incorporated on April 26, 1995 as a joint venture between Priya Exhibitors and Village Roadshow and got its current name on June 28, 2002. India’s largest cinema chain.. It all started as a dream in the year 1997, and within a decade, we have turned the same into a 70 mm reality. Like the credits of a movie, we would like to share with you our achievements… Setting up the very FIRST multiplex in the country - Setting up a movie haven for filmgoers in the form of the eleven screener: PVR Bangalore, India’s largest ever multiplex - Delighting not one, not two but more than 11 million patrons last year. We now have an unmatched 101 screens across the country. We love to entertain. i. Our Singular Belief: “Movies First” - It’s a mantra every single one of our 3,000 employees swears by. From filling up our candy bars with the most scrumptious popcorns and beverages… to offering personalized service. From raising the experience bar with super luxury Gold Class Cinemas… to collaborating with international partners to bring you the latest movies first. At PVR, it’s “Movies First” all the way. ii) A hall of firsts. Like no other. PVR has always had the first mover advantage in the market, but it has worked hard to keep up the momentum. Breaking new grounds comes naturally to PVR as a result of which even after a decade it continues to be a trend setter in the industry. Here’s a quick snap shot of the many firsts that PVR has achieved. iii) Why Movie-Goers Put Us First Showcasing the best of movies under one roof - Designing “vibrant and exciting” cinema interiors - Offering “world-class service standards” - “Computerized ticketing” - “Real time online booking” - “Mobile ticketing” facilities - “Gold Class” and “Cinema Europa” with luxury seating - Exclusive lounge and “Personalized” service - Experiential marketing and promotions to delight patrons. With a star-cast this impressive, no wonder PVR is the preferred choice to moviegoers across the country… the success chart and the capability of PVR cinema can only be judged by it effectiveness it establishing its roots deep inside Indian soil if entertainment industries as presently 25cinemas and multiplex are already running successfully. PVR Cinemas will soon have a very firm national footprint with 250 screens across the country. PVR will soon open cinemas in : 1. Phoenix Mills, Lower Parel, Mumbai 2. Ghatkopar, Mumbai 3. Ampa Mall, Chennai 4. The Acropolis, Ahmedabad Public places like cinemas could and have in the past been targets for terrorist attacks and rioting. Any violence in public places such as cinemas could cause damage to life and property, and also impact customer sentiment and their willingness to visit cinemas, which would have a material adverse effect on our business and results of operations. Our insurance policies for assets cover, among other things, terrorism, fire and earthquakes. However, our insurance policies may not be adequate to cover the loss arising from these events, which could adversely affect our results of operations. India has also witnessed civil disturbances in recent years and it is possible that future civil unrest as well as other adverse social, economic and political events in India could have an adverse impact on us. Regional or international hostilities, terrorist attacks or other acts of violence of war could have a significant adverse impact on international or Indian financial markets or economic conditions or on Government policy. Such incidents could also create a greater perception that investment in Indian companies involves a higher degree of risk and could have an adverse impact on our business and the price of our Equity Shares. iv) Terrorism and endorsement in relevance with PVR cinemas: The terrorism damage exclusion warranty of the riot, strike, malicious damage provision forming part of the within mentioned policy stands deleted. The expression/s “terrorism and act of terrorism” shall have the same meaning as contained in terrorism damage exclusion warranty. Endorsement does not cover loss of or damage caused by: A:) Total or partial cessation of work or the retardation or interruption or cessation of any process or operation or omission of any kind. Permanent or temporary destruction by order of the government or any lawfully constituted authority. Permanent or temporary dispossession of any building or plant or unit of machinery resulting from the unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same. Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of any person in any action taken in respect of any act of terrorism. B:) Loss or damage , cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing, or in any way relating to action taken in respect of any act of terrorism. If the company alleges that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the insured. The limit of coverage under this endorsement shall not exceed the amount fixed as amount of the pool of unseen and not forecasted situation and to have an effective control over it, and thus for this situation PVR cinema has its own policies to safeguard the it patrons who come to at cinema (insert here the overall liability limit for material damage + loss of profit). I respect of several insurances within the same compound/ location within all the Indian insurers, the maximum aggregate loss payable per compound/ location shall be as defined. if the actual aggregate loss suffered at one compound/ location is more than as defined ,the amount payable under individual policies shall be reduced on pro rata basis. According to the policies of PVR cinemas coverage under the endorsement is subject to an excess of Re. 0.5% of total sum insured subject to a minimum amount as applicable for each and every claimed in respect of both material damage and loss of profit combined. When PVR specially talk about terrorist damage exclusion warranty notwithstanding any provision to the contrary within this insurance it is agreed that this insurance exclude loss, damage cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. For the purpose of endorsement any act of terrorism mean an act, including but not limited to the use of force or violence and/ or the threat thereof any person or group of person whether acting alone or on behalf of or in connection with any organization or government committed for the political, religion, ideology or similar purpose including the intention to influence any government and to put the public or any section of the public in fear. The warranty also exclude loss, damage, cost or expense of whatsoever nature or indirectly caused by resulting from or in connection with any action taken in controlling , preventing, suppressing or in any way relating to action taken in respect of any act of terrorism. If the company alleges that by reason of this exclusion, any loss damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the insured. In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect. Believing in altruistically devoting themselves towards its patron PVR has managed to captivate both the mind of its patron and all over India. There has not been any such incidents at cinema which will bring defame to it when I talk about the attack that could have been taken place at cinema is only exempted because of its tight security and its astounding hospitality. Steps to be taken to overcome terrorism:
It is not only a duty of Government, security forces but also of all citizens. In my view following actions are necessary : 1. Transformation of Army/police/NSG ammunitions using advanced technology and each of the department should allot a specific security work. Minimizing interference of political parties and corruption in these forces at upper level. Media should not be allowed to malign the image of security forces, whatever issue they should be solved internally. Further, one thing should be noticed that during attack on world trade centre in USA only one picture they have shown to world, but in our country, is it necessary to show each every bits as breaking news during army or commando operation which intend of helping us mostly helping to terrorist? As we got information after investigation that terrorist was continuously guided from outside and due to interruption of media many of our security force personal lost their live or was in trouble so restriction on media is necessary. All security forces should keep some distance from all the political parties to work without discrimination and to gain the support of public. Continuous vigilance and monitoring of terrorist activities at costal side and land boundary with other country with use of advanced technology is necessary. 2. Presently, the technological advancement made security measures most susceptible, so that to cope with these problems the selection procedure is changed from conventional one to have room for more technocrats. 3. One good news is that the people of India always express unity instead of their different creed, religion, caste and culture, but only this thing is not sufficient, all time vigilance and co-operation with security forces is necessary. We need to understand that for security reasons, during checking at many places when security person ask for identity instead of making this is as an issue of credit and dignity we should co-operate with them. |
III Conclusion
Terrorist attacks directed against economic and business targets have a tactical as well as a strategic impact, an economic as well as a psychological impact. The tactical impact is in respect of replaceable damages. The strategic impact has a long-term effect on the profitability of their business operations due to factors such as an increase in insurance premia for business transactions, an increase in their expenditure on physical security, and an increase in their tax liability due to a surge in Govt. spending on counter-terrorism for which the money has to come from the tax-payers. It has been estimated that the 9/11 terrorist strikes have resulted in a one-third increase in the expenditure on counter-terrorism in the US Defense Department alone. Globalization and decentralization are the defining characteristics of the business world of today. Very often many of the core tasks of multinational companies are performed not by their headquarters in their country of origin, but by their field offices spread across the world. Western multinationals delegate many of their core tasks to their offices in India because of the availability in India of highly-qualified managerial experts, who are prepared to work for emoluments, which are high by Indian standards, but not so high by the standards of the country of origin of the multinational. If an act of terrorism disrupts the working of their Indian offices it would affect not only their business operations in India, but also their operations right across the world.
For the awareness of likely external threats they are dependent on the media, the police and the governmental intelligence agencies. The media reporting often tends to be sensational and over-dramatized. The reliability of their reports is often questionable. While open source information from the media is important for increasing awareness of likely threats, the ability to have it verified, analyses and assessed is equally important. Otherwise, physical security set-ups will be groping in the dark. . Effective physical security rests on a strong information base. The security set-ups of private companies and other establishments suffer from a major handicap in this regard. Their ability to collect intelligence is confined to the interior of the company or establishment. They will have no means of collecting intelligence about threats, which could arise from outside the company or establishment. There is certainly no readymade solution that can be recommended to resolve all problems of terrorism risk coverage & each arrangement will have to be tailored to the specific needs of each market. The experience so far available suggests that a layered approach for the compensation perhaps offer the most realistic solution to both the capacity and uncertainty problems of terrorism risk. What the citizen of India and the civilian of worldwide require is Terror Free Tomorrow and also want to know how to create effective policies to counter extremism worldwide. With the vision to have throughout the world, public opinion strengthens or weakens terrorists and extremists. By this finding people’s own priorities, one can empower public opinion against authoritarian dictatorships and terrorist minorities alike.
Hereby two case study are referred in accordance to terrorism:
Case Law-
Devender Pal Singh Vs. State of N.C.T. of Delhi 2002 (1) SC (Cr.) 209
In a case where 9 person had died and several other injured on account of perpetrated acts The court said that such terrorist who have no respect for human life and people are killed due to their mindless killing. So any compassion to such person would frustrate the purpose of enactment of Tada and would amount to misplaced and unwarranted sympathy. Thus they should be given death sentence.
Kartar Singh v. State of Punjab [1994] 3 SCC 569,
where it observed that the country has been in the firm grip of spiraling terrorist violence and is caught between deadly pangs of disruptive activities. Apart from many skirmishes in various parts of the country, there were countless serious and horrendous events engulfing many cities with blood-bath, firing, looting, mad killing even without sparing women and children and reducing those areas into a graveyard, which brutal atrocities have rocked and shocked the whole nation Deplorably, determined youths lured by hard-core criminals and underground extremists and attracted by the ideology of terrorism are indulging in committing serious crimes against the humanity.
Bibliography:
v Terrorism & The Business World journal
v Journal of Banking and Finance.
v Journal of Applied Corporate Finance
v New York Times
