What are Exclusions?

Insurance policies are a promise for the insurer to pay a compensation “sum assured” to the nominees of the policy holder in the event of death of the life insured. However, the act of giving insurance is dependent on the Insurer who agrees to carry the risk in return for payment of a premium.

In some circumstances, an insurer may refuse to provide an insurance policy – for example due to medical reasons or due to a high risk occupation; or provide a policy subject to certain exclusions.

High risk occupations are those where the individuals, by the nature of their work, carry a risk of death. These could be armed service professions and professions or hobbies that have a high risk of death such as professional sky diving or mountaineering or motor racing.

Most Insurers do not cover the risk of death by suicide in the first year of the policy. In the event that a life insured commits suicide during the first year of the policy, an insurer can deny to pay the claim under the policy terms and conditions. This clause is designed to protect insurers from fraud.

Please check your policy terms and conditions for exclusions.

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