Key Exclusions In General Insurance Policies (2025)

General insurance provides essential protection against health, motor, property, and travel risks. But in 2025, one of the biggest mistakes Indian policyholders still make is assuming “everything is covered.” Every insurance policy comes with exclusions—conditions or situations where claims will not be paid.

This article breaks down the most common exclusions across general insurance categories so you can avoid unpleasant surprises when filing claims.

1. Health Insurance Exclusions

Pre-Existing Diseases (PED): Most policies have a waiting period (1–4 years) for PEDs like diabetes or hypertension.
Maternity & IVF Treatments: Covered only after a specific waiting period or through add-ons.
Cosmetic or Dental Procedures: Unless medically necessary (e.g., accident-related surgery).
Self-Inflicted Injuries: Suicide attempts or substance abuse-related hospitalization.

2. Motor Insurance Exclusions

Driving Without License/Drunk Driving: No claim if driver violates legal norms.
Consequential Damages: If the engine gets damaged due to waterlogging but you tried restarting it, claim may be rejected.
Wear & Tear: Tyres, tubes, and routine depreciation are not covered.
Unauthorized Use: Using a private car for commercial purposes without proper insurance.

3. Property Insurance Exclusions

War, Nuclear Risks, Terrorism: Typically not covered unless bought as add-ons.
Gradual Damage: Issues like slow water seepage, termite infestation, or wear and tear.
Unoccupied Property: Claims may be denied if the property is vacant for 30+ days without notice.
Deliberate Damage: Fraudulent or intentional destruction of property.

4. Travel Insurance Exclusions

Adventure Sports: Activities like skiing, scuba diving, or trekking are excluded unless you buy adventure add-on covers.
Unapproved Medical Treatments: Alternative therapies abroad (not recognized by insurers).
Visa Rejection Costs: Travel insurance won’t refund visa fees.
Illegal or Risky Acts: Arrests or incidents due to criminal activity or negligence.

IRDAI 2025 Guidelines on Exclusions

Policies must now clearly list exclusions upfront in a simplified “Key Fact Statement.”
IRDAI has capped waiting periods for PEDs to a maximum of 3 years across insurers.
Customers must be given digital access to exclusions before purchase.

Case Example

Amit purchased travel insurance before flying to Canada. His baggage was lost, but since it contained cash above the insured limit, his claim was rejected. This highlights why reading exclusions carefully is crucial.