A closer look at any insurance document would reveal the phrase “Act of God” sprinkled here and there across different sections. So, what does this term mean? Simply put, ‘Act of God’ refers to natural disasters that are not caused by any human intervention. In fact, it pertains to natural catastrophic occurrences that are beyond the slightest degree of human control.
For example, if you have home insurance cover for your apartment that suffers damage due to an earthquake, the loss incurred by you would be covered. Keep in mind that the coverage that you receive will depend on the sum insured as well as the policy terms.
Examples of Acts of God:
Earthquakes
Hurricanes
Storms
Floods
Cyclones
Glacier burst
What is NOT an Act of God?
Tyre burst
Road accidents
Death caused by intake of alcohol
Does ‘Act of God’ cover all natural catastrophes?
Not all natural catastrophes are covered under the ‘Act of God’ category. Contextual nuances need to be considered based on where you are residing. For instance, in India, ‘volcanic eruptions’ are not covered under ‘Act of God’, whereas in other countries such as Indonesia, it is covered.
Keep in mind:
The exact definition of an ‘Act of God’ may differ from insurer to insurer.
Pay close attention to the policy document for more details on exclusions.
In most cases, under insurance for motor, home and life, coverage against Acts of God is provided.
Your insurance company will reimburse you for the damage that is caused due to natural disasters.
Under most comprehensive motor insurance policies, coverage for the ‘Act of God’ is provided. Your insurer may give you the option of purchasing coverage against floods or other disasters. It should be noted here, that losses due to negligence of the policyholder may not be covered under most policies.
Act of God: What Happens If a Car Is Struck By Lightning?
Suppose a car catches fire due to lightning, the damage would be covered, as it comes within the purview of the ‘Act of God’. However, if the fire is caused by carelessness or negligence, then it is not deemed as an ‘Act of God’, as it is required that proper care and precaution should be taken and one cannot escape liability after being negligent or careless.
When it comes to health insurance and life, almost all policies mention ‘Acts of God’, but not all natural disasters are covered as it varies from one policy to another. Therefore, check the terminology used in your insurance policy to understand what types of natural disasters are covered.
Try to thoroughly go through the minute aspects related to your coverage details thoroughly. Understand what is not covered under ‘Acts of God’.
Most importantly, check the policy details carefully before investing. This is about shielding yourself and your loved ones from uncertainties and one cannot take impulsive decisions.
Remember, the famous quote by Neale Donald Walsch: “Life begins at the end of your comfort zone.”
Summing up, it’s best to do what you believe is right while preparing your safety net from an ‘Act of God.’
