Exclusion clause/exemption of liability

Explanations

"Exclusion clauses”, also known as exemption of liability, refer to the items specified in the insurance policy for which the insurance company is not responsible for compensation.

Exclusion clauses can be either enumerated or unenumerated. Enumerated clauses explicitly list the scope of the insurance company's excluded liability in the insurance terms and conditions. Under the unenumerated-clauses method, all items that are not listed in the scope of the insurance coverage are excluded from compensation.

Occurrence scenarios

Almost all types of insurance policies have exclusion clauses, the purpose of which is to manage risk.

Examples

Client C purchased a medical insurance policy that explicitly excludes coverage for alcohol-related incidents. One day, C attended a social gathering and drank too much, resulting in alcohol poisoning. The medical expenses incurred from going to the hospital would need to be borne by the client.

key points

When purchasing insurance, it is important to understand the scope of excluded responsibilities to protect your legitimate rights and interests.

If you would like to learn more, please feel free to consult with our insurance advisors.