India: ‘Force majeure clause will not apply’

The Life Insurance Council of India has decreed that all life insurance companies, both public and private, will process all coronavirus-related death claims, at the earliest.

In a press release, the Life Insurance Council stated, “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.
“The spiralling 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.”

Life Insurance Council is a forum that connects various stakeholders of the insurance sector. It develops and coordinates all discussions between the Government, Regulatory Board and the public.
Apart from this, the Insurance Regulatory and Development Authority of India (Irdai) has also provided additional time for payment of renewal premium in case of health insurance policies and motor third party insurance.

Responding to representations made by life insurers and the Life Insurance Council, the regulator issued the instructions for providing an additional grace period of 30 days for premium payments.