COVID-19: An Act of God? Insurance Perspective

Open Access

Year : 2022 | Volume : | Issue : 2 | Page : 1-6

    Yashas Malik

  1. Law Student, Vivekananda Institute of Professional Studies, Guru Gobind Singh Indraprastha University, New Delhi, India


The COVID-19 pandemic came with a roar and attacked the globe, which resulted in national lockdowns to control the spread of this deadly virus. Such cross-border and domestic movement restrictions have impacted businesses significantly throughout the globe, leading to cancellation or postponement of various sports and entertainment events, including Tokyo Olympics 2021, which was scheduled for mid of 2020 and IPL 2021 suspension- due to deadly second wave in India. While one may have an impression of being safe under insurance cover on such business interruptions and event cancellations, but such claims are likely to face certain issues. Since most of the prevailing underwriters in the market did not issue many policies which covers the loss due to direct impact of a pandemic, simply because if all the insurances were to cover such losses, then insurers do not have enough resources or the amount of claims they’ll be exposed to will be astronomical and abnormally large for any insurance company to account for. But, if the perils do not exclude such instances, then the principle of ‘contra proferentum’ will come to shine the claimant’s armor. The author in his work tries to determine the scope of exclusions and reaction of courts with regards to application of principle of ‘loss of utility’ to insurance contracts having direct impact of the pandemic, whilst focusing on intertwined concepts of act of God and frustration and further elaborating

Keywords: COVID-19, pandemic, insurance, virus, contra proferentum, act of God

[This article belongs to Journal of Banking and Insurance Law(jbil)]

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Regular Issue Open Access Article
Volume 4
Issue 2
Received June 20, 2021
Accepted June 29, 2021
Published January 25, 2022