LOSSES DUE TO PANDEMIC: INSURABILITY, SCOPE AND LIMITS
Keywords:
Force majeure, liability insurance, COVID-19, business interruption insuranceAbstract
The world is not what it was at the beginning of the year 2020. A pandemic has substantially changed the way business is carried out in almost all walks of life. A lockdown to contain this pandemic roughly between March and May 2020 hit several businesses hard dragging them to loss of income and other such problems. In the light of this situation, this paper seeks to discuss the possibility of force majeure risk insurance. For this, this paper would first define what a force majeure is taking cue from various interpretations of the same. Further, this paper shall discuss the scope of liability insurance in general and business interruption liability insurance in particular. This paper shall discuss whether force majeure risks, especially ones that happened due to Covid-19, could be covered under such business interruption liability insurance. While discussing the same, this paper shall find whether such insurance policy is possible to be issued in India.
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