Force Majeure Will Not Apply in COVID-19 Death Claims Assures Life Insurance Council
Moneylife Digital Team 06 April 2020
Life Insurance Council, the face of the Indian life insurance industry, on Monday said that all life insurers, public and private, are committed to process any death claim pertaining to coronavirus (COVID-19) at the earliest. The Council also confirmed that the clause of ‘force majeure’ will not apply in case of COVID-19 death claims. 
 
"This step was taken to reassure customers who had reached out to individual life insurance companies seeking clarity on this clause in their contract as well as to dispel rumours to the contrary. All life insurance companies have also communicated to their customers individually in this regard," it says in a release.
 
Force majeure is a common clause in legal contracts that allows either party to limit their liability in the face of some unforeseeable, extraordinary event.
 
Satyendra Nath (SN) Bhattacharya, secretary general of Life Insurance Council, says, “The spiraling global and local impact of COVID-19 pandemic has emphasised 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. 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.”
 
A consortium of 24 life insurance companies, Life Insurance Council functions together with participation of all the life insurers through several sub-committees towards development of the industry.
 
Comments
Ramesh Popat
6 years ago
for India at least, it is not a problem.
rakeshnangia06
6 years ago
ARE WE SECURED UNDER LIC ?
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