Definition of "Exclusion"

Certain causes and conditions, listed in the policy, which are not covered.

Provision within an insurance policy that excludes a claims in the event of a specific events. Examples of this are exclusions for critical illness if the life assured who maybe has had a heart attack in the past they could be excluded from a claim if they have another one. Permanent health insurance commonly has exclusions for back complaints in the event people have suffered bad backs in the past.