EXCLUSIONS

EXCLUSIONS An exclusion is a provision within an insurance policy that eliminates coverage for certain acts, property, types of damage or locations. Things that are excluded are not covered by the plan, and excluded costs don't count towards the plan's total out-of-pocket maximum. Those provisions stated clearly are not covered under an insurance policy, if a claim arise based on these exclusions, the insurance company will not pay any benefit. For instance, Suicide is an exclusion in a term insurance plan. E.g. If a person commits suicide within 1 year from policy inception date, the plan will be void and only 80 % of the premiums paid will be payable as a death benefit. Policy exclusions are use in insurance to create a balance between coverage for fortuitous losses (losses you could not have reasonably prepared for) and the need to remain solvent in order to pay those claims. Common exclusions are typically included in a range of policies, for example: war, terrorism, pollution. Note that these commonly excluded perils may, however, be written back into the policy by way of an endorsement. Most exclusions can be found after the main coverage sections in your policy, you will also notice/see exclusions in the definitions, conditions, and endorsements sections. Moral of the write-up, always read your insurance policy document and then read it again to understand the nitty gritty! #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful