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Do all term policy have clause for force majeure?

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14 Mar, 2021 by  Aman Jain

I am going through the term policy brochure of multiple companies. In most of them I found the force majeure clause.

Does it is default by all companies or some company has exempt this clause?



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Term Life Insurance
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16 Mar, 2021

Hello Aman,


This is an interesting question.


Can you share with us a brochure or wording from any term insurance company where you have seen a Force Majeure clause?


Regards,

Team Beshak

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16 Mar, 2021
Aman Jain
Tata AIA Sampoorna Raksha Plus `6.16. Force majeure If the performance by the Company of any of its obligations herein shall be in any way prevented or hindered in consequence of any act of God or State, Strike, Lock out, Legislation or restriction of any Government or other authority or any other circumstances beyond the anticipation or control of the Company, the performance of this contract with prior approval of IRDA of India shall be wholly or partially suspended during the continuance of the Force Majeure event and the company will resume the contract terms and conditions when such event cease to exist.` https://apps.tataaia.com/tataaia/pdf/Policy_Terms_and_Conditions_Sampoorna_Raksha_plus.pdf I have asked about this clause to Tata AIA and Policy Bazaar agent, but they were also not aware of this clause.
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16 Mar, 2021
Aman Jain
How can I fix the formatting of previously answered question?
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17 Mar, 2021

Hello Aman,


We have checked with some other insurance companies, even LIC - and we couldn't find this clause in any of them.


But there isn't anything to worry about here.

  • Per the extract you have shared, Force Majeure is a clause that is a situation where there is a situation that arises beyond the insurance company's control.
  • Pandemic lockdown is an example of a force majeure event - Now if an insurer is not able to operate and pay claims since they aren't able to send their team to office, then they will not be breaching the policy contract.
  • Also, this clause mentions that they can invoke the clause only after approval from IRDAI - so an arbit decision to invoke force majeure is avoided in most cases.


Hope this clarifies.


Regards,

Team Beshak

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17 Mar, 2021
Aman Jain
Thanks Beshak Team for detailed clarification.
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17 Mar, 2021

The formatting issue is a bug. We have reported this to our Tech team and they will be work on it. Cheers!

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