Exclusion Rider

Exclusion Rider An exclusion rider is an endorsement or provision in an insurance policy that lists the perils or hazards that the insurer will not cover. Policyholders can purchase supplemental policies to fill the coverage gaps caused by these riders. The intent of exclusion rider is to exclude or restrict coverage for a known pre-existing medical condition or a condition that predisposes you to a potential disability, hazardous activities, certain types of property (jewelry), damage caused by war. There are some of the reasons why an insurance company might include an exclusion rider in a policy: to reduce the risk of loss, to protect against fraud, to comply with regulations. This Clause directly tell policyholders to be aware of which perils or hazards their policy will not cover or they may face unexpected financial burdens from a non-covered loss. For example, many plans will not provide benefits for disabilities arising from being in a war, participating in a riot, committing a crime, or self-inflicting an injury. Also, an Aviation exclusion a clause present in many life insurance policies, an aviation exclusion states that the death benefit becomes void if the insured dies as a result of an aviation-related accident while not on a regularly scheduled flight. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful