Insurance Companies to process COVID-19 death claims: Life Insurance Council
The Life Insurance Council said none of its members will deny death claims to any policyholder in the eventuality of loss of life due to the Covid infection.
The Life Insurance Council on Monday said none of its members will deny death claims to any policyholder in the eventuality of loss of life due to the Covid infection. The clause of 'force majeure' will not apply in case of Covid-19 death claims, the apex lobby of the life insurance companies said in a statement. The clause generally refers to unforeseeable circumstances that may prevent someone from fulfilling a contract.
It has also said all life insurers, both public and private, are committed to process any death claim pertaining to Covid-19 at the earliest.
These steps have been taken to reassure customers who had reached out to their life insurers, 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 statement claimed.
Announcing the decision, council secretary general, SN Bhattacharya said, "the spiraling global and local impact of the Covid pandemic has emphasized the fundamental need for life insurance.
"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 the pandemic or for servicing their policy."
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.
Meanwhile, reacting to the industry body's announcement, Bajaj Allianz Life said the force majeure condition will not have any impact on insurance contracts of its customers due to Covid-19.
"We will continue to honour the death claims received from our customers pertaining to the Covid pandemic, and assure them of any assistance on their policy in these crucial times," it said.
The evening update from the Union Health Ministry put the number of confirmed cases at 4,281 with 111 deaths. However, a PTI tally of figures announced by various states as at 9 PM showed 4,683 have been infected so far, 138 have died and 359 have been cured and discharged. West Bengal has revised downward its death toll from 7 to 3.