An insurance policy can offer relief in the form of financial security against the odds of life. Along with purchasing the right plan, it is also essential to understand every term of the insurance policy you purchase. Here, exclusions are a quintessential section.Â
Exclusions refer to the circumstances and conditions which are not covered in an insurance policy due to various reasons. For losses under such situations, the expenses have to be borne by the policyholder. All types of insurance policies have an exclusion clause; however, the conditions may vary a little from plan to plan. Simply put, exclusions are specific situations where your insurer does not provide coverage.
Exclusions in Life Insurance
A life insurance policy offers a sum assured in case the insured passes away during the tenure of the policy. However, there are certain conditions in which the death of the insured is not compensated by the life insurance provider, like:
SuicideÂ
Participation in life-threatening activities (for instance, adventure activities)
Death due to pregnancy complications
War-related death
Involvement in illegal activities
Death due to illegal driving
Exclusions in Health Insurance
A health insurance policy covers the medical expenses of the insured up to the sum insured limit. Certain medical conditions are not covered in the policy, such as:
Cosmetic surgery, unless required after an injury/ illness
Self-inflicted injuries/suicide attempt
War-related injuries
Claims during the waiting period of the policy
Dental treatment
Pre-existing diseases (until the waiting period)
Exclusions in Motor Insurance
A motor insurance policy covers the cost of repairing your insured vehicle in case of any damage. However, a few conditions typically, remain out of the coverage of a motor insurance plan, like:
Mechanical and electrical breakdown
An accident caused while driving without a valid licence
The accident occurred outside the covered geographical area of the insurance policy.
Health insurance and life insurance are two essential plans that are advised to everyone, while third-party motor insurance is mandatory as per the Motor Vehicle Act, 1988. Before you purchase any kind of insurance, make sure you have a thorough understanding of the exclusions of the policy.Â