All insurance companies to honour claims arising out of coronavirus deaths
In a welcome relief for life insurance policyholders, all insurance companies – both public and private – will process claims due to death by the novel coronavirus.
The industry’s umbrella body Life Insurance Council has said the ‘force majeure’ clause will not apply in case of COVID-19 death claims and both private and state-run players will follow this.
The clause generally refers to unforeseeable circumstances that may prevent someone from fulfilling a contract. The clarification comes at a time when the country has witnessed over 100 deaths due to the COVID-19 pandemic.
“The spiraling global and local impact of COVID-19 pandemic has emphasised the fundamental need for life insurance in every household. The industry is taking every measure to ensure that the disruption caused to policyholders, due to the lockdown is minimal,” the council’s Secretary General S N Bhattacharya said.
Customers had reached out to individual life insurance companies seeking clarity on this clause in their contract, which resulted in the clarification, the council said.
The statement urged customers not to get swayed by any misinformation or misrepresentation, asserting that the life insurance companies will stand by them in the difficult times.
Last week, the Insurance Regulatory and Development Authority of India (IRDAI) announced that policyholders will get 30 additional days to pay the life insurance premiums.
An additional grace period has been provided to the policyholders whose life insurance policies’ premiums fall due in March and April 2020, IRDAI said in a circular on Saturday.