1

CHAPTER- 1
TERRORI SM



Terrorism is not new, and even though it has been used since the beginning of recorded history
it can be relatively hard to define. Terrorism has been described variously as both a tactic and
strategy; a crime and a holy duty; a justified reaction to oppression and an inexcusable
abomination.
Terrorism has often been an effective tactic for the weaker side in a conflict. As
an asymmetric form of conflict, it confers coercive power with many of the advantages of
military force at a fraction of the cost. Due to the secretive nature and small size of terrorist
organizations, they often offer opponents no clear organization to defend against or to deter.
That is why preemption is being considered to be so important. In some cases, terrorism has
been a means to carry on a conflict without the adversary realizing the nature of the threat,
mistaking terrorism for criminal activity. Because of these characteristics, terrorism has
become increasingly common among those pursuing extreme goals throughout the world. But
despite its popularity, terrorism can be a nebulous concept. Even within the U.S. Government,
agencies responsible for different functions in the ongoing fight against terrorism use different
definitions.
The United States Department of Defense defines terrorism as the calculated use of
unlawful violence or threat of unlawful violence to inculcate fear; intended to coerce or to
intimidate governments or societies in the pursuit of goals that are generally political,
religious, or ideological. Within this definition, there are three key elementsviolence, fear,
and intimidationand each element produce terror in its victims. The FBI uses this:
"Terrorism is the unlawful use of force and violence

Against persons or property to intimidate or coerce a government, the civilian population, or
any segment thereof, in furtherance of political or social objectives." The U.S. Department of
State defines "terrorism" to be "premeditated politically-motivated violence perpetrated


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against non-combatant targets by sub-national groups or clandestine agents, usually intended
to influence an audience.
Outside the United States Government, there are greater variations in
what features of terrorism are emphasized in definitions. The United Nations produced this
definition in 1992; "An anxiety-inspiring method of repeated violent action, employed by
(semi-) clandestine individual, group or state actors, for idiosyncratic, criminal or political
reasons, whereby - in contrast to assassination - the direct targets of violence are not the main
targets." The most commonly accepted academic definition starts with the U.N. definition
quoted above, and adds two sentences totaling another 77 words on the end; containing such
verbose concepts as "message generators" and 'violence based communication processes."
Less specific and considerably less verbose, the British Government definition of 1974
is"the use of violence for political ends, and includes any use of violence for the purpose of
putting the public, or any section of the public, in fear."
Terrorism is a criminal act that influences an audience beyond the immediate victim. The
strategy of terrorists is to commit acts of violence that draws the attention of the local
populace, the government, and the world to their cause. The terrorists plan their attack to
obtain the greatest publicity, choosing targets that symbolize what they oppose. The
effectiveness of the terrorist act lies not in the act itself, but in the publics or governments
reaction to the act. For example, in 1972 at the Munich Olympics, the Black September
Organization killed 11 Israelis. The Israelis were the immediate victims. But the true target
was the estimated 1 billion people watching the televised event.
The Black September Organization used the high visibility of the Olympics to publicize its
views on the plight of the Palestinian refugees. Similarly, in October 1983, Middle Eastern
terrorists bombed the Marine Battalion Landing Team Headquarters at Beirut International
Airport. Their immediate victims were the 241 U.S. military personnel who were killed and
over 100 others who were wounded. Their true target was the American people and the U.S.
Congress. Their one act of violence influenced the United States decision to withdraw the
Marines from Beirut and was therefore considered a terrorist success. There are three
perspectives of terrorism: the terrorists, the victims, and the general publics. The phrase one
mans terrorist is another mans freedom fighter is a view terrorists themselves would accept.
Terrorists do not see themselves as evil. They believe they are legitimate combatants, fighting
for what they believe in, by whatever means possible. A victim of a terrorist act sees the
terrorist as a criminal with no regard for human life.

This sympathetic view of terrorism has become an integral part of their psychological warfare
and needs to be countered vigorously.
Terrorist acts or the threat of such action have been in existence for millennia.
Despite having a history longer than the modern nation-state, the use of terror by governments
and those that contest their power remains poorly understood. While the meaning of the word
terror itself is clear, when it is applied to acts and actors in the real world it becomes confused.


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Part of this is due to the use of terror tactics by actors at all levels in the social and political
environment. Is the Unabomber, with his solo campaign of terror, a criminal, terrorist, or
revolutionary?

Can he be compared to the French revolutionary governments who coined the word terrorism
by instituting systematic state terror against the population of France in the 1790s, killing
thousands? Are either the same as revolutionary terrorist groups such as the Baader-Mienhof
Gang of West Germany or the Weather Underground in the United States?
So we see that distinctions of size and political legitimacy of the actors
using terror raise questions as to what is and is not terrorism. The concept of moral
equivalency is frequently used as an argument to broaden and blur the definition of terrorism
as well. This concept argues that the outcome of an action is what matters, not the intent.
Collateral or unintended damage to civilians from an attack by uniformed
military forces on a legitimate military target is the same as a terrorist bomb directed
deliberately at the civilian target with the intent of creating that damage. Simply put, a car
bomb on a city street and a jet fighter dropping a bomb on a tank are both acts of violence that
produce death and terror.
Therefore (at the extreme end of this argument) any military action is
simply terrorism by a different name. This is the reasoning behind the famous phrase "One
man's terrorist is another man's freedom fighter". It is also a legacy of legitimizing the use of
terror by successful revolutionary movements after the fact. The very flexibility and
adaptability of terror throughout the years has contributed to the confusion. Those seeking to
disrupt, reorder or destroy the status quo have continuously sought new and creative ways to
achieve their goals. Changes in the tactics and techniques of terrorists have been significant,
but even more significant are the growth in the number of causes and social contexts where
terrorism is used.
Over the past 20 years, terrorists have committed extremely violent acts for
alleged political or religious reasons. Political ideology ranges from the far left to the far right.
For example, the far left can consist of groups such as Marxists and Leninists who propose a
revolution of workers led by revolutionary elite. On the far right, we find dictatorships that
typically believe in a merging of state and business leadership.
Nationalism is the devotion to the interests or culture of a group of people
or a nation. Typically, nationalists share a common ethnic background and wish to establish or
regain a homeland. Religious extremists often reject the authority of secular governments and
view legal systems that are not based on their religious beliefs as illegitimate. They often view
modernization efforts as corrupting influences on traditional culture. Special interest groups
include people on the radical fringe of many legitimate causes; e.g., people who use terrorism
to uphold antiabortion views, animal rights, and radical environmentalism. These groups
believe that violence is morally justifiable to achieve their goals


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The Evolution of Terrorism




Terrorism is continually changing. While at the surface it remains "the calculated use of
unlawful violence or threat of unlawful violence to inculcate fear" it is rapidly becoming the
predominant strategic tool of our adversaries. As terrorism evolves into the principal irregular
warfare strategy of the 21st century, it is adapting to changes in the world socio-political
environment. Some of these changes facilitate the abilities of terrorists to operate, procure
funding, and develop new capabilities. Other changes are gradually moving terrorism into a
different relationship with the world at large.
In order to put these changes into context, it will be necessary to look at
the historical evolution of terrorism, with each succeeding evolution building upon techniques
pioneered by others. This evolution is driven by ongoing developments in the nature of
conflict and international relations. It is also necessary to consider some of the possible causes
of future conflicts, in order to understand the actors and their motivations.
When describing the evolution of terrorism and the use of terror through
history, it is essential to remember that forms of society and government in the past were
significantly different than they are today. Modern nation-states did not exist in their present
form until 1648 (Treaty of Westphalia), and the state's monopoly on warfare, or inter-state
violence, is even more recent. The lack of central governments made it impossible to use
terror as a method of affecting a political change, as there was no single dominant political
authority.
Also, the absence of central authority meant that the game of warfare was open to many more
players. Instead of national armies, a variety of non-sovereign nobility, mercenaries, leaders of
religious factions, or mercantile companies participated in warfare. Their involvement in
warfare was considered to be perfectly legitimate. This is in contrast to the modern era, where
nations go to war, but private participation is actually illegal.


5




Early Theories of Terrorism

Early practitioners of terrorism, such as the Zealots and the Assassins did not leave any
particular philosophy or doctrine on their use of terrorism. With the exception of spectacular
failures such as Guy Fawkes' religiously inspired attempt to assassinate King James I and both
Houses of Parliament in England, terrorism did not separate itself or progress beyond the
normal practices of warfare at that time. As political systems became more sophisticated, and
political authority was viewed as less of a divine gift and more as a social construct, new ideas
about political conflict developed.
The period of warfare and political conflict that embroiled Europe after
the French Revolution provided inspiration for political theorists during the early 1800s.
Several important theories of social revolution developed during this time (see text box on the
next page for summaries of the key revolutionary thinkers). The link between revolutionary
violence and terror was developed early on. Revolutionary theories rejected the possibility of
reforming the system and demanded its destruction. This extremism laid the groundwork for
the use of unconstrained violence for political ends.
Two ideologies that embraced violent social change were Marxism, which evolved into
communism, and anarchism. Both were utopian; they held that putting their theories into
practice could produce ideal societies. Both advocated the complete destruction of the existing
system. Both acknowledged that violence outside the accepted bounds of warfare and
rebellion would be necessary.
Communism focused on economic class warfare, and assumed seizure of state power by the
working class (proletariat) until the state was no longer needed, and eventually disposed of.
Anarchism advocated more or less immediate rejection of all forms of governance. The
anarchist's belief was that after the state is completely destroyed, nothing will be required to


6

replace it, and people could live and interact without governmental coercion. In the short term,
communism's acceptance of the need for organization and an interim coercive state made it the
more successful of the two ideologies. Anarchism survived into the modern era and retains
attraction for violent extremists to this day.



20th Century Evolution of Terrorism


In the early years of the 20th Century nationalism and
revolutionary political ideologies were the principal
developmental forces acting upon terrorism. When the
Treaty of Versailles redrew the map of Europe after
World War I by breaking up the Austro-Hungarian
Empire and creating new nations, it acknowledged the
principle of
Self-determination for nationalities and ethnic groups. This encouraged minorities and
ethnicities not receiving recognition to campaign for independence or autonomy.
However, in many cases self-determination was limited to European nations and ethnic groups
and denied others, especially the colonial possessions of the major European powers, creating
bitterness and setting the stage for the long conflicts of the anti-colonial period.
In particular, Arab nationalists felt that they had been betrayed. Believing they were
promised post-war independence, they were doubly disappointed; first when the French and
British were given authority over their lands; and then especially when the British allowed
Zionist immigration into Palestine in keeping with a promise contained in the Balfour
Declaration.
Since the end of World War II, terrorism has accelerated its development into a
major component of contemporary conflict. Primarily in use immediately after the war as a
subordinate element of anti-colonial insurgencies, it expanded beyond that role. In the service
of various ideologies and aspirations, terrorism sometimes supplanted other forms of conflict
completely. It also became a far-reaching weapon capable of effects no less global than the
intercontinental bomber or missile. It has also proven to be a significant tool of diplomacy and
international power for states inclined to use it.
The seemingly quick results and shocking immediacy of terrorism made some consider it
as a short cut to victory. Small revolutionary groups not willing to invest the time and


7

resources to organize political activity would rely on the "propaganda of the deed" to energize
mass action. This suggested that a tiny core of activists could topple any government through
the use of terror alone. The result of this belief by revolutionaries in developed countries was
the isolation of the terrorists from the population they claimed to represent, and the adoption
of the Leninist concept of the "vanguard of revolution" by tiny groups of disaffected
revolutionaries. In less developed countries small groups of foreign revolutionaries such as
Che Guevara arrived from outside the country, expecting to immediately energize
revolutionary action by their presence.


TYPES OF TERRORI SM

Different types of terrorism have been defined by lawmakers, security professionals and
scholars. Types differ according to what kind of attack agents an attacker uses (biological, for
example) or by what they are trying to defend (as in ecoterrorism). Here, a comprehensive list
of types of terrorism, with links to more information, examples and definitions.
Researchers in the United States began to distinguish different types
of terrorism in the 1970s, following a decade in which both domestic and international groups
flourished. By that point, modern groups had began to use techniques such as hijacking,
bombing, diplomatic kidnapping and assassination to assert their demands and, for the first
time, they appeared as real threats to Western democracies, in the view of politicians, law
makers, law enforcement and researchers. They began to distinguish different types of
terrorism as part of the larger effort to understand how to counter and deter it.


State Terrorism




Many definitions of terrorism restrict it to acts by non-state actors. But it can also be argued
that states can, and have, been terrorists. States can use force or the threat of force, without


8

declaring war, to terrorize citizens and achieve a political goal. Germany under Nazi rule has
been described in this way.
It has also been argued that states participate in international terrorism, often by proxy.
The United States considers Iran the most prolific sponsor of terrorism because Iran arms
groups, such as Hezbollah, that help carry out its foreign policy objectives.

Bioterrorism

Bioterrorism refers to the intentional release of toxic biological agents to harm and terrorize
civilians, in the name of a political or other cause. The U.S. Center for Disease Control has
classified the viruses, bacteria and toxins that could be used in an attack. Category a
Biological Diseases is those most likely to do the most damage. They include:
Anthrax (Bacillus anthraces)
Botulism (Clostridium botulinum toxin)
The Plague (Yersinia pestis)
Smallpox (Variola major)
Tularemia (Francisella tularensis)
Hemorrhagic fever, due to Ebola Virus or Marburg Virus



Cyber terrorism


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Cyber terrorists use information technology to attack civilians and draw attention to their
cause. This may mean that they use information technology, such as computer systems or
telecommunications, as a tool to orchestrate a traditional attack. More often, cyber terrorism
refers to an attack on information technology itself in a way that would radically disrupt
networked services. For example, cyber terrorists could disable networked emergency systems
or hack into networks housing critical financial information. There is wide disagreement over
the extent of the existing threat by cyber terrorists.






Eco-terrorism




Eco-terrorism is a recently coined term describing violence in the interests of
environmentalism. In general, environmental extremists sabotage property to inflict
economic damage on industries or actors they see as harming animals or the natural
environment. This have included fur companies, logging companies and animal
research laboratories



Nuclear terrorism







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"Nuclear terrorism" refers to a number of different ways nuclear materials might be exploited
as a terrorist tactic. These include attacking nuclear facilities, purchasing nuclear weapons, or
building nuclear weapons or otherwise finding ways to disperse radioactive materials.



Narcoterrorism








Narcoterrorism has had several meanings since its coining in 1983. It once denoted violence
used by drug traffickers to influence governments or prevent government efforts to stop the
drug trade. In the last several years, narcoterrorism has been used to indicate situations in
which terrorist groups use drug trafficking to fund their other operations.
















11

CHAPTER -2


TERRORI AM RI SK

THE I NDI AN CONTEXT











It is a bit unfortunate that we as a country are facing hostilities from our neighboring countries
since independence. Pakistan since its creation has always harbored terrorist elements against
India with an intention to destabilize our country. China the Big Brother supports Pakistan in
their Endeavour to divide India. We face threats from Bangladesh and from Sri Lanka in the
South. Since we have open borders with Nepal, terrorists use Nepal as easy entry and exit
points. Our borders with Pakistan and Bangladesh are porous and not fully sealed. We face
trouble on the North -East side with China claiming Arunachal Pradesh.

These countries hobnob with these terrorists and have helped them to
establish their bases from where they can carry out their evil acts. So all the expertise for
planting Bombs on soft targets come from these countries. But not everything can be done
from these foreign bases. So they take advantage of the unemployed youth and others who
fall easy prey to their indoctrination and create local groups who ferment trouble in all cities
across India. They take help from some political class and the corrupt officials provide fodder
for their entry and exit from India.
So Terrorism is not about Muslims only and their quest for Jihad.
Not all Muslims are terrorists and not all terrorists are Muslims. India's 140 million Muslims
are a salutary negation of the facile thesis about Islam's incompatibility with democracy. The
terrorists that we encounter today are not men who commit evil acts out of revenge. For these
men indoctrinated by outfits like the Al Qaeda and the Dawood gangs, terrorism is a fully
fledged profession.

The cold blooded killers of Ahmadabad last week went about with their
tasks with clinical precision... They did it because it was a job they wanted to do. Only few
Muslims believe that these phonies are fighting for any cause but their own. Hindus have
stopped fulminating against terror despite the heavy toll it takes each time. For these terrorists
who are invisible, they have no Agenda. They do it in the name of Jihad or some linguistic or
religious cause, which a common man does not identify himself with.



12

India earned its reputation as a soft state that can be intimidated into
meeting terrorists' demands. Our then foreign minister in the year 1999 in the month of
December personally escorted three terrorists freed by India in order to secure the release of
passengers of a hijacked Indian Airlines flight to Taliban controlled Afghanistan. This act led
to the 9/11 attack in New York as one of these very terrorists was later implicated in the 9/11
attacks.

Tough rhetoric and reactive government policies and Draconian acts like the POTA will not
serve the cause for curbing such terrorism. It will only result in violation of human rights and
engineer more youth to fall prey to such terrorist organizations. We have to break out of this
trap that we have imposed on ourselves.

Democratic politics, political freedoms, civil liberties and religious tolerance
must be protected at all costs. The corruption and politicization of the police forces must be
minimized. We need a dedicated and an unbiased police force. Criminalization of politics
must stop. Instead, we have number of parliamentarians with pending criminal cases. Some
jailed parliamentarians also cast their vote on important National issues which is alarming!
Terrorism prospers and thrives in such conditions. In a way, Poverty is an incubator of
terrorism and a root cause of corruption. It breeds the Nasalizes and the local terrorist
groups. The government needs to be tough in implementing reforms to maintain rapid
economic growth and uplift the status of its downtrodden people.

More importantly, India's terrorism problem is largely specific
to Kashmir. There is a difference between terrorists and freedom fighters and one should not
equate them. India must muster International support in this issue and put pressure on
Pakistan to stop supporting these terrorists. India habitually points fingers at Pakistan which is
the hotbed and the epicenter of terrorism all around the world.
But merely pointing fingers will not help matters. For a small country like Pakistan
to be able to infiltrate groups of Indians and recruit them to the terrorist's cause indicates
failures of the intelligence on the other hand. We have to look into this fact. There is no co-
ordination between the central intelligence agencies and the states. Each points a finger at
others each time a bomb blast takes place. This is matched by the flaws of the criminal justice
system, which is rudimentary by the standards of mature democracies. Whether it is the
Bombay bomb blasts of 1992 or the Gujarat riots in 2002, justice takes many years to deliver.
Justice has neither been done, nor seen to be done. India needs to be tough but not reactionary
to the causes of terrorism.

The country has gone through the dark phases of terrorism; in Punjab, Assam, Tamil Nadu and
Jammu & Kashmir. However, the recent events have shaken the core of nation and have given
a totally new dimension to the gravity of the risk





13



LI ST OF TERRORI ST ATTACS I N I NDI A



I N MUMBAI

12 March 1993 - Series of 13 bombs go off, killing 257

6 December 2002 - Bomb goes off in a bus in Ghatkopar, killing 2

27 January 2003 - Bomb goes off on a bicycle in Vile Parle

14 March 2003 - Bomb goes off in a train in Mulund, killing 10

28 July 2003 - Bomb goes off in a bus in Ghatkopar, killing 4

25 August 2003 - Two Bombs go off in cars near the Gateway of India and Zaveri
Bazaar, killing 50

11 July 2006 - Series of seven bombs go off in trains, killing 209

26 November 2008 to 29 November 2008 - Coordinated series of attacks, killing at
least 172.

13 February 2010 - a bomb explosion at the German Bakery in Pune killed fourteen
people, and injured at least 60 more

13 July 2011 - Mumbai bombings

August 1, 2012-Pune bombings



14



I N OTHER STATES OF I NDI A

March 12, 1993 - A series of bomb blasts, planted by Muslim underworld figures,
rock the country's commercial capital of Bombay, killing some 260 people and injuring
713.
February 14, 1998 - 46 persons were killed and more than 200 injured when 13 blasts
ripped through Coimbatore, members from Al-Umma, All India Al-Jihad Committee,
and Peoples Democratic Party were found to be behind the attack.

December 24-31, 1999 Pakistani militants hijack an Indian Airlines flight from
Kathmandu to New Delhi with 189 people aboard, kill one passenger and force the
release of three jailed Muslim militants in exchange.

December 22, 2000 - Lashkar-e-Taiba militants attack the Red Fort in Delhi that left
two Army personnel and a civilian dead.


October 1, 2001 - At least 21 people killed in a suicide bomb explosion and gunfire at
the assembly in Kashmir in an attack by suspected Islamic militants.

December 13, 2001 - Heavily armed Islamic militant group opened fire in Parliament
complex, killing several people in an unprecedented attack on the seat of power in the
world's biggest democracy.

January 22, 2002 - Four people were killed in an attack on the American Center,
Kolkata by Lashkar-e-Taiba militants.
March 30, 2002 - Seven Hindus killed in an attack by Islamic militants on the
Raghunath Temple in Jammu.



15

May 14, 2002 - More than 30 army men were killed in a terrorist attack on an Army
camp near Jammu.

September 24, 2002 - 35 people were killed when 2 Lashkar-e-Taiba militants
attacked the Akshardham temple in Gandhinagar, Gujarat.


December 2, 2002 - Two persons were killed and 31 injured in a powerful explosion
in a bus outside the crowded Ghatkopar railway station in Mumbai. Students Islamic
Movement of India was suspected to be behind the blasts

December 6, 2002 - Twenty-five people were injured in a bomb blast by members of
the Students Islamic Movement of India at McDonalds fast food restaurant at Mumbai
Central railway station. The bomb was planted in the air conditioner duct. It was
suspected to be a crude bomb.


January 27, 2003 - At least 30 people were injured when a bomb planted on a bicycle
went off throwing splinters of sharp nails outside Vile Parle railway station in
Mumbai. Members of SIMI were found to be behind the attack.

March 13, 2003 - A powerful bomb blast shattered a bogie of a local train at Mulund
railway station in Mumbai during peak hours killing 11 people and injuring more than
65. This was the most powerful serial explosion.

August 23, 2003 - Two bombings at the Gateway of India and the Mumba Devi
temple in Mumbai killed 52, injured 167. Terrorists from Lashkar-e-Taiba and the
Students Islamic Movement of India were found to be behind the attacks.


July 28, 2003 - Bus blast kills 3 and injures 31 others in Mumbai. Pakistani
intelligence agency: ISI and members of the Students Islamic Movement of India were
found to be behind the blast.

July 5, 2005 - Five Bangladeshi terrorists, trained by the Jaish-e-Mohammad, attacked
the Ram Janmabhumi in Ayodhya, all 5 killed, 1 civilian died.

October 29, 2005 - 67 people were killed and 224 injured in serial bombings in major
Delhi markets on Diwali eve. A Pakistani group, Islamic Inquilab Mahaz, claimed
responsibility for the attack. The group is linked to Lashkar-e-Taiba.




16

March 7, 2006 - At least 20 persons were killed and over 101 injured when two blasts
rocked Varanasi. The first blast took place at the Sankat Mochan Hanuman temple, the
second at the Varanasi railway station. Terrorists from Lashkar-e-Taiba were found to
be behind the attack.

June 1, 2006 - Three heavily armed terrorists were killed in an encounter with the
police when they tried to drive through the security cordon guarding the RSS
headquarters in Nagpur. Two policemen were injured in the encounter.


July 11, 2006 - Seven explosions ripped through crowded commuter trains and
stations in Mumbai, killing at least 200 people and leaving 700 more bloodied and
injured. Lashkar-e-Taiba and local Students Islamic Movement of India (SIMI)
activists were found to be behind the attacks.

2006 Varanasi blasts

A series of blasts occurred across the Hindu holy city of Varanasi on 7 March 2006.
Fifteen people are reported to have been killed and as many as 101 others were injured. No
one has accepted responsibility for the attacks, but it is speculated that the bombings were
carried out in retaliation of the arrest of a Lashkar-e-Toiba agent in Varanasi earlier in
February 2006.
On 5 April 2006 the Indian police arrested six Islamic militants, including a cleric who
helped plan bomb blasts. The cleric is believed to be a commander of a banned Bangladeshi
Islamic militant group, Harkatul Jihad-al Islami, and is linked to the Inter-Services
Intelligence, the Pakistani spy agency.

2010 Varanasi blasts

On 7 December 2010, another blast occurred in Varanasi that killed immediately a toddler,
and set off a stampede in which 20 people, including four foreigners, were injured. The
responsibility for the attack was claimed by the Islamistmillitant group Indian Mujahedeen.

On 14th march 2011 militants of the Ranjan Daimary-led faction ambushed patrolling troop of
BSF when one way from Bangladoba in Chirang district of Assam to Ultapani in Kokrajhar
killing 8 jawans.


2011 High court bombing The 2011 Delhi bombing took place in the Indian capital
Delhi on Wednesday, 7 September 2011 at 10:14 local time outside Gate No. 5 of the
Delhi High Court, where a suspected briefcase bomb was planted. The blast killed 12
people and injured 76.







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September 7, 2011 2011 Delhi bombing

February 13, 2012 2012 attacks on Israeli diplomats

February 21, 2013 2013 Hyderabad blasts

March 13, 2013 2013 Srinagar attack



Andhra Pradesh
Andhra Pradesh is one of the few southern states affected by terrorism, although of a far
different kind and on a much smaller scale. The terrorism in Andhra Pradesh stems from the
People's War Group (PWG), popularly known as Nasalizes.

The PWG has been operating in India for over two decades, with most of its operations in the
Telangana region in Andhra Pradesh. The group is also active in Orissa and Bihar. Unlike the
Kashmiri insurgents and ULFA, PWG is a Maoist terrorist organization and communism is
one of its primary goals.

Having failed to capture popular support in the elections, they resorted to violence as a means
to voice their opinions. The group targets Indian Police, multinational companies, and other
influential institutions in the name of the communism. PWG has also targeted senior
government officials, including the attempted assassination of former Andhra Pradesh Chief
Minister Chandrababu Naidu.

It reportedly has strength of 800 to 1,000 well armed militants and is believed to have close
links with the Maoists in Nepal and the LTTE of Sri Lanka. According to the Indian
government, on an average, more than 60 civilians, 60 naxal rebels and a dozen policemen are
killed every year because of PWG led insurgency. Also, one of the major terrorist attacks was
the 25 August 2007 Hyderabad Bombing.


Kerala
For a long time, Kerala was considered as a terror Free State and model of tolerance and
prosperity. The wake-up call came in October 2008, when four young Malayalis were killed
by Indian security forces in an alleged jihadi training camp in Kashmir. Last July a different
threat emerged when a group of young Muslims cut off the hand of a Christian professor,
condemning him for writing an exam question they said insulted the Prophet Muhammad.
According to Time Magazine, migrants to the Persian Gulf were taking extremist ideology to
Kerala

Tamil Nadu
Tamil Nadu had LTTE (Liberation Tigers of Tamil Elam) militants operating in the Tamil
Nadu state up until the assassination of former Prime Minister Rajiv Gandhi. LTTE had given
many speeches in Tamil Nadu led by Velupillai Prabhakaran, Tamilselvan, and other Elam


18

members. The Tamil Tigers, now a banned organisation, had been receiving many donations
and support from India in the past. The Tamil Nadu Liberation Army is a militant Tamil
movement in India that has ties to LTTE.



THE TERRORI SM RI SK POOL :

A decade after the 9/11 attacks in the US, the Indian insurance industry has a
surging pool and is well positioned to handle terror-risk covers.
Along with insurance policies, important events today carry a terror cover.
While the ICC Cricket World Cup 2011 had a cover of Rs 600 crore, the total sum insured for
IPL-4 stood at around Rs 900 crore, which included a cover of Rs 450 crore against terrorist
attacks.
After the attacks in the US, many countries started putting together a pool to
cater to insurable losses. The Indian Terrorism Pool, managed by state-run General
Insurance Corporation of India, was set up in 2002 with an initial corpus of Rs 200 crore. The
entire premium collected under terrorism risks by the industry is deposited in the pool. This
corpus is set aside by general insurance companies to ensure claims after a terror attack do not
hit the bottom lines of insurers.
The pool covers companies and institutions for a liability of Rs 750 crore,
including damage or loss of property.
According to recent estimates, the terrorism risk pool in India has surged to a
record Rs 1,700 crore, the highest since the Mumbai terror attack on November 26, 2008. The
rates are uniform across the industry and are fixed by the pool committee. This is very good
for the entire industry. The advantage of having such a pool was felt while settling claims after
the Mumbai terror attack,






19


CHAPTER 3

BI OTERRORI EM



The history of bioterrorism goes back as far as human warfare, in which there
have always been efforts to use germs and disease as weapons. In the late 20th century, violent
non-state actors began seeking to acquire or develop biological agents to use in attacks on
civilians. There are very few of these groups, and almost no recorded bioterrorism attacks.
Nevertheless, the reported risk has led the U.S. government to expend immense resources for
biodefense in the early part of the 21st century.
Bioterrorism refers to the intentional release of toxic biological agents to harm and
terrorize civilians, in the name of a political or other cause. The U.S. Center for Disease
Control has classified the viruses, bacteria and toxins that could be used in an attack. Category
a Biological Diseases is those most likely to do the most damage. They include:

Anthrax (Bacillus anthracis)
Botulism (Clostridium botulinum toxin)
The Plague (Yersinia pestis)
Smallpox (Variola major)
Tularemia (Francisella tularensis)
Hemorrahagic fever, due to Ebola Virus or Marburg Virus

Bioterrorism is a form of terrorism where there is the intentional release of
biological agents (bacteria, viruses, or other germs). This is also referred to as germ warfare.
Terrorism is defined by the United States government as the "unlawful use of force and
violence against persons or property to intimidate or coerce a government, the civilian
population, or any segment thereof, in furtherance of political or social objectives." In addition
to biological agents, terrorists can also utilize chemical agents and nuclear bombs.
While a biological agent may injure or kill people, animals, or plants, the goal for
the terrorist is to further their social and political goals. Many biological agents are found in


20

nature; however, they can be modified by the terrorist to make them more dangerous. Some of
these agents can be transmitted from person to person, and the infection may take hours or
days to become apparent.



The biological agents that can be utilized for bioterrorism

While any germ, bacteria, or virus could potentially be utilized by terrorist, there are a number
of biological agents that have been recognized as being more likely to be utilized. The reason
for these agents being of concern is based on their availability to terrorists and the ease by
which these agents can be disseminated. The U.S. Centers for Disease Control and
Prevention (CDC) has developed a classification system for biological terror agent; the
classification is based on the likelihood of the agent being used and the risk posed by each
agent. However, it is almost impossible for most people to memorize all the details about
each of these agents. It is more important for the general public to understand the risk of
bioterrorism and the appropriate response to a terrorist attack.

Origins of Current Concern about Bioterrorism


Douglas C. Lovelace, Jr., the Director of the Strategic Studies Institute, suggests four reasons
bioterrorism has become a concern in the last generation:
The first, beginning around 1990 ...was the official U.S. Government suggestion that
proliferation of offensive BW programs...was an increasing trend. The second was the
discovery ...that the USSR...had built a massive covert biological weapons program... The
third was the corroboration by the United Nations Special Commission in 1995 that Iraq ...
had stockpiled large quantities of agents ... The last was the discovery, also in 1995, that the
Japanese Aum Shinrikyo group ...had spent 4 years attempting ...to produce ...two pathogenic
biological agents. (December 2005)




21

Twentieth Century Biological Warfare


States, not terrorists, have been the biggest developers of biological warfare programs. In the
twentieth century, Japan, Germany, the (former) Soviet Union, Iraq, the United States and
Great Britain all had biological warfare development plans.
There have been a few confirmed bioterrorism attacks. In 1984, the Rajneesh cult in the
United States made hundreds ill with food poisoning when they put Salmonella typhimorium
in an Oregon salad bar. In 1993, the Japanese cult Aum Shinrikyo sprayed anthrax from a
rooftop.















22

CHAPTER 4
I NSURANCE AGAI NST TERRORI SM



Terrorism insurance is insurance purchased by property owners to cover their
potential losses and liabilities that might occur due to terrorist activities.
It is considered to be a difficult product for insurance companies, as the odds of
terrorist attacks are very difficult to predict and the potential liability enormous. For example
the September 11, 2001 attacks resulted in an estimated $31.7 billion loss. This combination
of uncertainty and potentially huge losses makes the setting of premiums a difficult matter.
Most insurance companies therefore exclude terrorism from coverage in casualty and property
insurance, or else require endorsements to provide coverage.
Concentration of risk is another factor in determining availability for terrorism
insurance. Due to the concentrated losses of the World Trade Center, carriers were hit with
large losses in one centralized location. Insurers seek to spread the coverage over a wider
geographic area than as with other aggregate perils, such as flood.
Insurance companies are using an approach that is similar to that used with
natural catastrophe risks. In this case where demand is greater than the supply for terrorism
coverage that a short-term solution is possible: a mix of government and private resource to
make easy the transition. In this situation, the government would serve two functions: to
establish rules to overcome the capacity shortage and to be the insurer of last resort.

On December 26, 2007, the President of the United States signed into law the
Terrorism Risk Insurance Program Reauthorization Act of 2007 which extends the Terrorism
Risk Insurance Act (TRIA) through December 31, 2014. The law extends the temporary


23

federal Program that provides for a transparent system of shared public and private
compensation for insured losses resulting from acts of terrorism.
The United States insurance market offers coverage to the majority of large
companies which ask for it in their polices. The price of the policy depends on where the
clients are residing and how much limit they buy.



In mid-2007 the idea of another extension to TRIA was tabled and is officially known
as TRIREA, (Terrorism Risk Insurance Revision and Extension Act). Initially TRIREA
contained several new provisions including a mandatory 'make available' clause for NCBR
coverage (Nuclear, Chemical, Biological and Radiological) and the ending of the distinction
between domestic and foreign events.

The Taj Mahal and the Oberoi group hotel, The Trident, might not have expected a terror
attack of this scale, but the two iconic landmark hotels do have terrorism insurance cover,
which would make up for the material losses they incur in this attack. While the Taj Hotel is
insured jointly by Tata AIG General Insurance (65 per cent), ICICI Lombard (30 per cent) and
Iffco Tokio General Insurance (5 per cent), Trident is primarily insured by United India
Insurance. Both the hotels are understood to have taken terrorism cover and loss of profit as
add-on policies with the fire insurance covers from their respective insurers. The amount of
cover that both the hotels have could not be ascertained.
In India, terrorism cover is offered by general insurance companies as an add-on policy with
the fire insurance policy. The policy covers any material loss that takes place due to acts of
terrorism. After the attacks on the World Trade Centre, US, in 2001, most of the reinsurers
refused to give cover against acts of terrorism. General insurance companies in India then
formed a collective pool and since then all the premium collections done by the industry for
this policy are put in this pool.





24

WHY I S TERRORI SM I NSURANCE REQUI RED?
Terrorism has become a global phenomenon. The recent world history has witnessed frequent
terrorist attacks, whether big or small and the number of such attacks per year has increased
rapidly. The new millennium has started with a major terrorist attack of 9-11-2001 on World
Trade Center in USA which is one of the most powerful nations of the world. This itself
speaks volume about growing audacity and technological sophistication of the terrorist outfits.
Terrorism insurance, thus, has become a need based insurance product. This is evident from
the attacks that we have witnessed in the recent years as shown in the following table:

INCIDENTS OF TERRORISM, WORLDWIDE*

2007 2008 2009 2010 2011
Attacks worldwide 14,415 11,663 10,968 11,641 10,283
Attacks resulting in at least 1 death, injury, or kidnapping 11,085 8,361 7,874 8,259 7,453
Attacks resulting in the death of at least 10 individuals 353 234 236 193 193
Attacks resulting in the death of at least 1 individual 7,229 5,040 4,761 4,704 4,502
Attacks resulting in the death of only 1 individual 3,982 2,870 2,695 2,691 2,550
Attacks resulting in the death of 0 individuals 7,186 6,623 6,207 6,937 5,781
Attacks resulting in the injury of at least 1 individual 6,231 4,831 4,530 4,724 4,333
Attacks resulting in the kidnapping of at least 1 individual 1,156 948 882 1,118 795
People killed, injured or kidnapped as a result of terrorism, worldwide 71,803 54,290 58,720 49,928 43,990
People killed as a result of terrorism, worldwide 22,720 15,709 15,311 13,193 12,533
People injured as a result of terrorism, worldwide 44,103 33,901 32,660 30,684 25,903
People kidnapped as a result of terrorism, worldwide 4,980 4,680 10,749 6,051 5,554

Over 10,000 terrorist attacks occurred in 2011, affecting nearly 45,000 victims in 70 countries
and resulting in over 12,500 deaths. The total number of worldwide attacks in 2011, however,
dropped by almost 12 percent from 2010 and nearly 29 percent from 2007. Although the 2011
numbers represent five-year lows, they also underscore the human toll and geographic reach
of terrorism. The Near East and South Asia continued to experience the most attacks,
incurring just over 75 percent of the 2011 total. In addition, Africa and the Western
Hemisphere experienced five-year highs in the number of attacks, exhibiting the constant
evolution of the terrorist threat.



25

The Near East and South Asia suffered 7,721 attacks and 9,236 deaths. The majority of those
occurred in just three countries Afghanistan , Iraq and Pakistan which, together,
accounted for 85 percent of attacks in these regions and almost 64 percent of attacks
worldwide. While attacks in Afghanistan and Iraq decreased from 2010 by 14 and 16 percent,
respectively, attacks in Pakistan increased by 8 percent.1
Africa experienced 978 attacks in 2011, an 11.5 percent increase over 2010. This is
attributable in large part to the more aggressive attack tempo of the Nigeria-based terrorist
group Boko Haram, which conducted 136 attacks in 2011- up from 31 in 2010.
Attacks in Europe and Eurasia fell 20 percent from 703 in 2010 to 561 in 2011. The greatest
decline occurred in Russia where terrorist attacks were down from 396 in 2010 to 238 in 2011.
In contrast, Turkey experienced a spike in terrorist attacks, rising from 40 in 2010 to 91 in
2011. Together, Russia and Turkey suffered almost 70 percent of all 2011 terrorism-related
deaths in Europe and Eurasia .
The number of terrorist attacks in East Asia and the Pacific declined for the fifth consecutive
year, falling 25 percent from 724 in 2010 to 543 in 2011, and 62 percent from the peak of
1,423 in 2007. Thailand and the Philippines continued to be the primary terrorist targets in the
region.
Terrorist attacks in the Western Hemisphere rose nearly 40 percent from 343 in 2010 to 480 in
2011, the vast majority of which were ascribed to the Revolutionary Armed Forces of
Colombia (FARC).

Types of Attacks
Armed attacks and bombings constituted nearly 80 percent of all terrorist attacks in 2011.
Suicide attacks accounted for just 2.7 percent of terrorist attacks last year but 21 percent of all
terrorism-related fatalities, a fact that underscores their extreme lethality. IEDs were the most
frequently used and deadliest terrorist weapon employed.
The number of bombings has remained relatively consistent over the past five years, ranging
between approximately 4,000 and 4,500 annually. In contrast, the number of armed attacks has
steadily decreased from a high of 7,958 in 2007 to 4,290 in 2011.
Suicide attacks rose from 264 in 2010 to 279 in 2011. In spite of the increase, this represents a
sharp drop from the five-year peak of 520 suicide attacks in 2007. Sunni extremists conducted
93 percent of suicide attacks.Terrorism-related kidnapping events and deaths, 978 and 576,
respectively, hit five-year lows.




26

Victims of Attacks
Over 12,000 people were killed by terrorist attacks in 2011. The overall number of victims
killed, however, decreased 5 percent from 2010. More than half of the people killed in 2011
were civilians and 755 were children. Although terrorism deaths decreased, the number of
government representative and security force fatalities increased significantly. Muslims
continued to bear the brunt of terrorism , while attacks targeting Christians dropped nearly 4 5
percent from a five-year high in 2010.
Although civilians were the largest single group of victims killed in terrorist attacks, their
numbers over the past five years in proportion to the total number of deaths have gone down
by 13 percent, decreasing from a 2007 high of 64 percent.
The number of government employees and contractors killed in 2011 increased by over 60
percent from 2010, while the number of government officials killed in 2011 increased by over
13 percent. The number of police killed in 2011 also increased by over 15 percent.
In cases where the religious affiliation of terrorism casualties could be determined, Muslims
suffered between 82 and 97 percent of terrorism-related fatalities over the past five years.
Muslim majority countries bore the greatest number of attacks involving 10 or more deaths,
with Afghanistan sustaining the highest number (47), followed by Iraq (44), Pakistan (37),
Somalia (28), and Nigeria (12).
Afghans also suffered the largest number of fatalities overall with 3,245 deaths, followed by
Iraqis (2,958), Pakistanis (2,038), Somalis (1,013), and Nigerians (590).

Attacks against Facilities
Over two-thirds of all terrorist attacks struck infrastructure or facilities. Of those,
transportation assets and public places were the most frequently targeted. Transportation
facilities -- such as vehicles, buses and transportation infrastructure -- incurred damage in
about 27 percent of the attacks, while public places -- including communal areas, markets,
polling stations, religious institutions , schools and residences -- incurred damage in about 21
percent of the attacks. Attacks on government facilities decreased by about 43 percent from
2010, from 796 attacks to 453 attacks in 2011.There was a sharp increase in the number of
attacks directed at energy infrastructure, including fuel tankers, fuel pipelines and electrical
networks, rising from 299 attacks in 2010 to 438 attacks in 2011.The number of attacks
directed at public places declined in each of the past five years, from a high of 4,121 attacks in
2007 to 2,186 attacks in 2011.





27

INSURANCE COVER AGAINST TERRORISM :

INTRODUCTION
In the present scenario of continually increasing terrorist attacks in India, we would
like to accentuate to you the available terrorism coverages, to safeguard your interests
on your assets and human resources. Most organizations are unaware of the level of
terror risk faced by them. And even after buying terror insurance covers for their
properties and possible business disruptions, companies may not exactly be clear on
the impact of death and devastation from a terror attack on their balance sheets.

Scope of Terrorism Cover

Terrorism Coverage is provided as an additional cover to all risks underwritten under
fire, engineering and property section of miscellaneous classes of business. For
Personal Accident policies, Terrorism is an inbuilt cover.

Terrorism Pool

The Indian Market Terrorism Risk Insurance Pool was initiated by the Indian Non-Life
Insurers in 2002. The Pool is managed by GIC Re. The entire terrorism premium is
ceded to the Pool and results are shared by the pool members in proportion to their
respective capacities provided.

Salient Features
Terrorism cover is taken as add on cover by payment of additional premium at the
option of the insured.
The Sum Insured opted for can include Material Damage & Business Interruption.

The maximum aggregate loss (Material Damage + Loss of Profit) payable per
compound/risk/location is Rs. 750 crores.

The premium charged will vary based on the risk occupancy (i.e.
Industrial/Nonindustrial /Residential) & on the Sum Insured.

The coverage is subject to an excess of 0.5% of the total sum insured subject to
aminimum of Rs. 1 lakh on each and every claim (in respect of both material damage
and loss of profits combined) and maximum of Rs. 10 crores for each and every claim.

Midterm inclusion of Terrorism Coverage is not allowed.

Terrorism Cover has to be taken only in conjunction with Property Engineering covers.


28

Exclusions
It does not cover loss of or damage caused by Total or partial cessation of work or the
retardation or interruption or cessation of any process or operations or omissions of any kind.
Permanent or temporary dispossession resulting from confiscation, commandeering,
requisition or 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 (whether or not such act is committed in the course of a disturbance of public
peace) in any action taken in respect of an act of terrorism

Loss or damage, cost or expenses 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.



Insurance: terror-proof your property


Terrorism has become a global menace, causing massive loss of life and property. Though you
dont know when and where you might be a victim of terrorism, there are some steps you can
take in order to ensure that you get suitable compensation for loss of property.
The damage caused by terrorism to human life and property till now has been staggering.
Terrorist acts can happen anywhere, as is evident in the recent attacks in the Ajmer dargah,
Mumbai train blasts, and the latest bomb blasts in UP. It could very well happen in your
neighborhood and damage your property. So it is better to take out a property insurance. Here
we take a look at what terrorism insurance is all about.
Terrorism insurance is the insurance cover available to the property owners in order to
compensate them for the losses and liabilities caused by terrorist activities.



The premiums payable for insurance

Terrorism insurance is regarded by insurance companies as a very difficult product, since it is
very difficult to predict the chances of terrorist attack taking place and the losses caused are
massive. For example, the 9/11 (September 11) attacks resulted in a loss of about US$ 31.7
billion. The twin factors of unpredictability and possibility of massive losses makes it difficult
to set the premiums of terrorism insurance. Hence many insurers omit terrorism insurance
from casualty and property insurance and those who do, need approvals in order to give cover.







29

TERRORISM INSURANCE IN INDIA

Yes, India does have its terrorism insurance. But there is a major difference between the
terrorism insurance in India and that of advanced countries like USA. In India, the terrorism
insurance pool has been set up by the Indian insurance companies. A terrorism pool is a
corpus of funds gathered by all insurance companies to pay for the losses resulting from
terrorist activities.

The recent serial blasts in Mumbai have yet again put terror insurance cover in the limelight.
The need for a terror cover is being felt by most merchants and shopkeeper running their
businesses in and around the blast sites.




One merchant, with a shop located in the lane close to Zaveri Bazaar said that he would not
mind paying a premium for a terror cover after feeling the tremors of the blast.

During February to April 2011, Board of Control for Cricket in India (BCCI) had also taken
an insurance cover against terrorism for the Cricket World Cup event being played in India
and neighbouring countries. The event was insured for a sum assured of Rs 2.46 billion and
the premium for this was said to be in the range of Rs 30 to Rs 40 million.

The cover was provided by National Insurance Company with General Insurance Corporation
of India (GIC of India)providing there insurance support. In addition to seeking insurance
cover to protect their wealth held in the form of gold and precious jewellery, some temples
have also opted for cover against terror attacks in the recent past. At a time when 9/11 had
just taken place with an attack on the World Trade Center in New York, reinsurers around the
world had withdrawn terrorism cover. GIC Re rose to the occasion by forming and managing
a terror pool. The terror pool was set to cover companies, institutions etc for material loss or
property damage. The entire premium collected by the insurance industry under terrorism risk
is deposited in this pool managed by GIC.

The pool has surged to Rs 1700 crore; and the premiums on terror insurance cover have also
risen by around 25% since 2008 terror attacksThe advantage of having a terror pool was also
felt while settling claims of Rs 600 crore against the damage caused on November 26, 2008.
The recent blasts in Zaveri bazaar have hit the diamond merchants hard and compelled them to
rethink the risks they are exposed to as well as the importance of a terror cover.



30


CHAPTER 5

CHALLAGES AND ISSUES IN INDIAN CONTEXT




certain critical challages and issues pertaining to Indian terrorism insurance market are.


India has terrorism pool by the name of IMTP, presently having the corpus at around
Rs.1500 cr, out of which the ceiling for a single event per location loss is 750 cr. The
coverage which was earlier at just Rs 200 crore per location in 2002-03, has gradually
increased to Rs 750 crore. Despite this impressive growth in coverage amount, it can
not be considered sufficient enough in present conditions. Insurance coverage, only up
to this amount, can be allowed by the writing companies. Beyond this limit, coverage
can be obtained only from the international market. Presently, with so many events
happening with terrorist threats looming large on them, the pool looks hugely
inadequate.


No government support is also very concerning issue. Whereas in almost all other
countries under study, it has been found that, there is presence of government support
either directly or indirectly, irrespective of the fact that terrorism insurance market
there is far more developed than Indian insurance market. Indian terrorism insurance
market at present is in its nascent stage and requires government support.



Even though the insurance business shows an upward trend, the growth is in terms of
amount of coverage and premiums collected. According to IRDA data, total premium
collected for terrorism insurance accounted for Rs 155.97 crore in 2004 which rose to
Rs 306 crore in 2009-10 showing almost 100% increase in the amount. However, when
it comes to reaching the masses, the number of clientele are still less and limited to rich
corporate class. Mass penetration is still an issue especially with less participation from
insurance player, fewer products and higher premiums.



31



For terrorism insurance business globally, the difficulty lies in determination of the
premium charges. With years of research and data collection, the insurance companies
have been able to estimate the potential losses as well as the probability of occurrence
of natural calamities with reasonable accuracy. However the same is not true in case of
terrorism insurance. Here the risk cannot be modeled because of lack of data as well as
difficulties in calculating the probability of occurrence of terrorist strikes. As far as
data regarding losses or damage due to terrorist attack is concerned, security agencies
hesitate to make such information public for obvious security reasons. Secondly our
understanding about the motivation and psychology that works behind the organized
terrorist attack is very poor. These factors together make it very difficult to reach at an
optimum premium charges. This results in companies passing the risk and uncertainty
to the insured in the form of unreasonably higher premium and therefore less business.


Secondly, while determining premium rates, location factor is not taken into account in
India. Some places are industrially advanced and hence economically more developed
compared to others and therefore more prone to risk of terrorist attacks. However the
rate of premium is same for all these places. This poses a great challenge for the
insurers to develop their business in economically less developed areas.











32


CONCLUSION

On November 26, 2008, the city of Mumbai came under a terrorist siege. It was a unique
attack where the perpetrators came by the sea and used a combination of tools (gun-fire,
bombs and grenades) to unleash terror. The terrorists were determined and remorseless and
had pre-determined targets in mind. The 60-hour siege paralyzed Indias financial capital as
the terrorists took over a Jewish centre, randomly attacked local train commuters, tourists at a
popular cafe, the rich and famous at luxury hotels, and overwhelmed the local police force. In
the aftermath, Mohammad Ajmal Qasab (one of the terrorists) was found guilty on charges of
murder, waging war on India and possessing explosives.
The 26/11 attacks on Mumbai were equated to the 9/11 of the US. Slogans like,
enough is enough were voiced everywhere. The media went into frenzy; there was grief,
candles, frustration, and helplessness in the air. On the second anniversary of 26/11, PM Singh
said: It is this spirit and strength of character of the Indian people that will defeat such forces
that seek to threaten our social fabric and way of life. We will never succumb to the designs of
our enemies.
The siege of Mumbai was organized by a Pakistani militant group, which
severely strained India's already tense relations with Pakistan. Three years later, it seems like
the dust is settling down, as there seems to be a course of improving relations between India
and Pakistan. In New York, India voted for the inclusion of Pakistan as a non-permanent
rotational member of the UN Security Council. Pakistan obliged India by moving towards
granting it MFN status. Also, the Pakistani military freed an Indian military helicopter that
strayed into its territory by mistake during adverse weather. However, many people are
pessimistic and consider these moves of Pakistan as hogwash. The collective sentiment is that
Pakistan will not change its colors.
On the other hand, the government of Maharashtra claims that Mumbai is
now better prepared to deal with terrorist attacks as it has adhered to the majority of
recommendations provided by the Ram Pradhan committee to improve security. Plus, it has
created a unit of 350 commandos on guidelines given by the NSG. The unit has been in
function with the latest weaponry and training by the Indian Army and foreign experts.

While much was promised once the city regained its balance after the attacks, on the
third anniversary of this horrific incident, still a lot remains unsaid and undone. For starters,
across the border, there are anti-India sentiments floating in the air. The Pakistan government
failed to avoid a protest rally organized by Jud on India being granted the MFN status. The
26/11 probe panel chief, Ram Pradhan states that the government has not contacted him in the
past two years on the implementation process. Qasab is maintained like a VIP and a couple of
crores have been spent on his upkeep. And the National Security Guards (who were the heroes
that saved the day) still lack the infrastructure they need.
Even after countless research studies and reports, coastal security still remains
questionable. In addition, India is yet to produce credible evidence to Pakistan for it to
prosecute the planners. Plus, there is mounting tension in the wake of communications
intercepts about another round of attacks being planned to mark the third anniversary of 26/11.


33

Tourism has been on a rise, nameless people shot to moments of fame by not celebrating the
birthdays of children that were born on 26/11. The leadership model of the Taj Mahal hotel
during the moment of crisis has secured itself a place at Harvard and the rest have a faint
recollection of who the martyr Major Sandeep Unnikrishnan was.

Still, at the third anniversary of 26/11, there are several unanswered questions.
Why do we just keep issuing warnings? Isnt it time to act?
Why are we trying to be over-friendly at the cost of the lives of our fellow citizens?
Why is Qasab being given a trial, while Bin Laden was spotted and killed?

Despite living in the worlds toughest neighbourhood, it can be concluded that some measures
have been taken to improve our abilities to deal with terrorism. The attacks on Mumbai did
give us a reality check and we did put a positive foot forward. However, it is not sufficient as
terrorist cells and threats continue to multiply. The anti-terrorist units created report a lack of
adequate equipment. Plus there is a requirement for a robust system that will enable better
gathering and sharing of intelligence. We should work on preventing strikes and not just
preparing for them.


Terrorist attacks today, are not limited to any specific part of the world but
have acquired an all pervasive and global nature. Occurrence of such events almost everyday
has reinforced the belief that terrorism continues to be the biggest threat to the world at
present. The risk of terrorism is proving to be a complicated and most important challenge for
the insurance industry, governments as well as society as a whole. In this regard, the
governments of various countries have taken strategic steps for creating laws and policies
related to terrorism insurance. Insurance industry, on its part, has put in enormous effort to
combat, manage and alleviate the risk posed by terrorism. They have tried to devise innovative
risk management tools on the basis of the relevant data collected and organized on a global
scale. As far as India is concerned, terrorism insurance scenario is at a crossroad, especially in
the absence of government support. The insurance companies in India under the leadership of
national reinsurer GIC have begun well by creating IMTP (India Market Terrorism Pool) in
2002 realizing the need and importance of terrorism insurance after 9/11/2001 World Trade
Center attack in US. However, 10 years have passed and there has been lot of changes in the
global scenario. Looking at the magnitude of losses and inadequacy of our pool, lot more is to
be done. To find an optimum solution of the entire problem related to terrorism insurance, an
integrated approach by all concerned parties is a must. Consolidated efforts by all the
stakeholders (government, regulator, insurance companies and policyholders) can help to
develop this sector, provided they play their roles in a very positive and innovative manner.










34





WI BLI GRAPHY

http://www.articles.economictimes.indiatimes.com
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http:// Wikipediawww.fas.org
http:// www.arpc.treasury.gov
http://www.institut.veolia.org
http://www.irda.com
http://www.zenithresearch.org.in
http://www.indianexpress.com