Terrorism is the use of fear and violence as a tool of propagating civil unrest and social paranoia. The main factor contributing to terrorism in Pakistan is violence as a result of political rivalry, sectarian, religious & ideological issues. Incidents of terrorism in Pakistan have increased manifolds during the last decade. Terrorism insurance has gained tremendous importance over the years, especially after the famous 9/11 incident.
Terrorism, under Terrorism Insurance Policy, is defined as an act or series of acts, including the use of force or violence of any person of group(s) of persons whether acting alone or on behalf of in connection with any organization(s) committed for political, religious or ideological purpose including the intention to influence any Govt. and/or to put the public in fear for such purpose.