Exclusions in Insurance

Exclusions in Insurance

Subject – Economy

Context – Recently, doing the rounds on social media was the case of an insurance company rejecting a death claim under a personal accident policy because the deceased was riding a vehicle over 150 cc, mentioned as an exclusion under the policy.

Concept –

• Exclusions are the stated legal conditions under which the insurance company will not pay your claim even for events or risks covered by an insurance policy.
• All insurance policies, including those that may have been standardised by IRDAI, SaralJeevan or Saral Suraksha, will have basic exclusions.
• Non-standard policies may have even more exclusions.
• Exclusions are clearly stated in the policy document. Comparing them across similar policies will shed light on the standard exclusions that are present across all policies, and help you choose policies that provide maximum risk coverage across various situations.