What is meant by the term "policy exclusions"?

The term "policy exclusions" refers specifically to situations or risks that are not covered by an insurance policy. This means that when a claim arises from these excluded situations, the insurance company will not provide coverage or compensation. Understanding policy exclusions is crucial for policyholders as it helps them assess the limits of their coverage and avoid surprises when filing claims. These exclusions are typically outlined in the policy documents and are an integral part of understanding what is and is not included in the coverage.

Coverage conditions, payout limitations, and requirements for new policies, while relevant to the overall understanding of insurance, do not directly pertain to the definition of policy exclusions.