Question

What is ‘force majeure, viz major, also spelt vis major’? Explain, give an example and give an example of an insurance term specifically covering such an event and excluding such an event.

Answer 1

Force majeure is a French word, which is often used to describe an unanticipated or unforeceeable event that has occured and as a result of which someone suffered losses or damage.

Well example, you can take the current pandemic COVID-19 as the best example for this. This is unanticipated and which caused losses to nations together.

There is an insurance coverage called force majeure insurance, which covers (for example) fixed expenses, loss of income and other contingencies. And any other insurance cover does not cover this. Also note that there will be a huge premium charges for such an insurance policy.