Insurance Exclusions - Terms and conditions uncovered by insurance
Exclusions as they apply to insurance are specific conditions and terms that the policy does not cover. There are always exclusions in an UK insurance policy. No policy can cover every possible event that might arise so insurers put insurance exclusions into a policy to limit their exposure to the risks being run so that they can measure and quantify the risks they are accepting.
For example a health insurance policy could provide a temporary income if an injury is sustained. But if that injury was received whilst under the influence of alcohol the insurers may refuse the claim as the policy excludes injuries suffered as a result of drinking or drug abuse. When the consumer agrees to a insurers product they enter into a legally binding contract with the insurer where the consumer agrees to the exclusions and any terms and conditions of the insurance policy irrespective of any blame.
Insurance Exclusions Example
Mrs B has taken on firm A`s insurance on her new washing machine. In the terms and conditions for the insurance policy it clearly states the customer is liable for the first £20 of any claim, and that the policy to insure the washing machine is void if it is not installed by an approved fitter.
The washing machine works fine for eight months and the develops a fault requiring maintenance. Mrs B hires an repairman to access the problem and provide a quote. The repairman's quote is for £120 and states the fault has arisen because the machine was improperly fitted.
Mrs B dutifully contacts firm A and informs them of the problem and starts the claim procedure, and informs them she has been quoted £120 to fix the fault and sends them the quote. Firm A accesses the claim and decides against it because the fault arose has a result of it being improperly fitted and informs Mrs B of the decision.
The repairman is hired and fixes the fault, handing Mrs B an invoice for £120.
The £120 on the invoice has to be paid by Mrs B, as the insurance policy was void because of exclusions.
Exclusions Information
Customers should be aware of any general exclusions for their policy and should take care not to invalidate that insurance.
Insurance Information
When taking out any insurance policy consumers should always ensure that their individual policy covers their requirements and needs. Consumers should be aware of the claims procedures, aware of any exclusions and be aware of any excess amounts. The more quotes that are received when searching for insurance products the greater the chance of consumers getting a low insurance quote. Although repeatedly giving the information requested for insurance quotes can be a pain, arranging insurance online can speed the process up and the savings that could be made will make the effort worthwhile.