Life Insurance Policy in Covid-19
In case of death claims made in connection to corona virus, all life insurance policy companies, including public and private, will process the claim. In this case the Force Majeure won’t apply.
Life insurance Policy companies have dealt many such querries in the last few months about clarity seeking the claims made in case of Covid-19 (Corona Virus) death claims.
Force Majeure is described as an event or effect that can be neither anticipated nor controlled.
The Life Insurance Council said that all the insurers are duty-bound to settle death claims if that occurs due to COVID-19 or corona virus disease and the clause of ‘Force Majeure’ will not apply in case of COVID-19 or corona virus death claims.
“The spiralling global and local impact of COVID-19 pandemic has emphasized the fundamental need for life insurance in every household. The life insurance industry is taking every measure to ensure that the disruption caused to policyholders, due to the lockdown is minimal, by providing them uninterrupted support digitally, be it for honoring death claims related to COVID-19 or for servicing their policy,” said Life Insurance Council Secretary General S N Bhattacharya.
“We reiterate that all life insurance companies stand by their customers in these difficult times and the customer should not be swayed by misinformation or misrepresentation,” he added.
What is force majeure?
Typically, force majeure events include an Act of God or natural disasters, war or war-like situations, labour unrest or strikes, epidemics, pandemics, etc.
Santosh Agarwal, CBO-Life Insurance, Policybazaar.com said, “Force majeure clause is basically a clause for unforeseen circumstances that makes the contract null or invalid, for the situations like natural disasters, war or war like situations, etc., that life insurance companies can’t plan for. Recently, the Life Insurance council issued a statement for both state-run and private life insurance players that the “force majeure” clause will not be applicable in any of COVID-19 death claims.
“However, many insurers do not have this clause in their contract and everyone will cover death caused due to COVID-19 given that the policyholder declared all the details correctly while buying the policy. The life insurance industry is making sure to help their customers in these gloomy times,” she said.
So it is very clear that all life insurance company whether private or public have to abide by the decision and any insurance or life insurance or health insurance claims made in connection to Covid-19 or Corona Virus disease the company has to give the life insurance policy amount.