Life insurance companies, public and private, will process any death claim concerning COVID-19 at the earliest, industry body Life Insurance Council stated today. (Force Majeure)
Several customers had moved out to individual life insurance firms inquiring clarity on the clause of ‘Force Majeure‘ in case of COVID-19 deaths. Force Majeure is defined as an event or effect that can be neither anticipated nor controlled.
The Life Insurance Council declared all the insurers are duty-bound to settle claims if death happens due to COVID-19, and the clause of ‘Force Majeure’ will not apply in case of COVID-19
All life insurance firms have also reached their customers individually in this “Force Majeure” matter.
“The spiraling global and local consequence of COVID-19 pandemic has highlighted the fundamental need for life insurance in every household.
The life insurance industry is practicing every measure to ensure that the disturbance caused to policyholders, due to the lockdown is minimal, by presenting them continuous support digitally, be it for honoring death claims related to COVID-19 or for servicing their policy,” stated Life Insurance Council Secretary-General S N Bhattacharya.
“We reiterate that all life insurance firms stand by their customers in these tough times, and the customer should not be swayed by misinformation or misrepresentation,” he added.
According to Bajaj Allianz Life Insurance’s policy wordings, “In the case of any force majeure or disaster that affects the regular functioning of the company and during the continuance of the force majeure events, all request for servicing the policy including policy-related payment shall be kept in abeyance.” This means that life insurers can temporarily suspend the claims in events such as natural calamities, strikes, war, civil unrest, riots, and bundhs.
However, according to the newest press release from the Life Insurance Council, it declares that force Majaure in the case of COVID-19 will not apply. Secretary-General, Life Insurance Council, announced,
Responding to representations made by life insurers and the Life Insurance Council, the regulator published the instructions for providing an additional grace period of 30 days for premium payments.