Tarun Chugh, the Managing Director of Bajaj Allianz Life, says: “In a situation of war, the life insurance policy remains in force. However, when concluding a contract, one should carefully study all its clauses. Terrorism, war and natural disasters are events that may lead to large losses, and various exclusion clauses are sometimes mentioned in insurance contracts.
The coronavirus pandemic, in fact, is also a force majeure event, and the claims arising during this period may be rejected. However, the Insurance Regulatory and Development Authority of India (IRDAI) asked the industry to pay for claims that arose during the COVID-19 outbreak.
“Massive wars could cause insurance companies to go bust as life insurance claims make billions of rupees, but so far this has not been ruled out in the policies. Some life insurers only dismiss beneficiary claims for suicide,” explains Naval Goel, founder of PolicyX.com.
Photos are from open sources.
