India, whose burgeoning hi-tech sector is attracting many Western companies, was branded one of the most dangerous places in the world for terror attacks yesterday by the world's second largest insurance broker.

Companies including UK firms Lloyds TSB, HSBC, Aviva and Prudential, are moving thousands of jobs to India, which has become a favourite destination for companies moving back-office computing and call-centre jobs.

But firms moving jobs to India have ignored the high terror threat that exists there, according to insurance giant Aon Corp.

India suffered the largest number of terror attacks between February 2003-February 2004, according to research conducted by Aon in compiling its 2004 map of terror hotspots.

"India is one of the forgotten stories of terrorism," said Martin Stone, a director of Aon's Counter Terrorism and Political Risk unit.

"Everybody focuses on places where there is perceived to be a high risk of attacks, such as Iraq, Colombia and Saudi Arabia. But India is right up there."

There is no sign that this guerilla activity is going to abate, leading to a downgrade of its risk rating, Mr Stone said.

"It's something that doesn't seem to be on business's radar screen. Unjustifiably, I think," he added.

India is one of the top five countries in terms of demand from Western firms looking for insurance to cover fledgling operations there against a wide range of political risks in India, said Mr Stone.

But demand tends to be for cover against firms' plants and factories being confiscated or their operating contracts being torn up by state or federal governments, rather than a devastating bomb attack like that which damaged HSBC's offices in Istanbul, Aon said.

Western companies may not only reduce the risk of attack on their buildings around the world by beefing up security, but also by their choice of locations.

By not prominently displaying their company names outside their offices or siting them in anonymous suburban areas away from high-profile buildings or city neighbourhoods they could also reduce their exposure, Mr Stone said.

But he said: "A high terrorism threat level might be the final straw that dissuades a company from investing in a country."