Death claim settlement due to coronavirus cannot be declined by insurers
New Delhi, Apr 07: The Life Insurance Council said all the insurers are duty-bound to settle claims if a death occurs due to covid-19.
All life insurers, both public and private, are committed to process any death claim pertaining to covid-19 at the earliest, the Council said in a statement.
It said the clause of Force Majeure' will not apply in case of covid-19 death claims.
Force Majeure is described as an event or effect that can be neither anticipated nor controlled.
This step was taken to reassure customers who had reached out to life insurance companies seeking clarity on this clause in their contract as well as to dispel rumours to the contrary, it said.
All life insurance companies have also communicated to their customers individually in this regard.
Life Insurance Council Secretary General S N Bhattacharya said that the spiralling global and local impact of covid-19 pandemic has emphasized the fundamental need for life insurance in every household."
"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.