What are Limitations in an insurance policy?

Limitations in an insurance policy refer to specific conditions or clauses that define the limits of coverage, often in the form of exclusions or reductions. These limitations outline what is not covered by the policy or the extent to which coverage is reduced under certain circumstances. By clearly stating what is excluded from coverage or how benefits may be limited, these provisions help to manage the insurer’s risk and clarify the policyholder's entitlements.

Provisions that enhance coverage would be contrary to the concept of limitations, as they increase the scope of what is covered. Standard policy benefits refer to the basic features included in an insurance policy and do not pertain to limitations. Mandatory medical coverage clauses specify required medical coverage but do not define the limitations of the policy overall. Therefore, recognizing that limitations are predominantly associated with exclusions and reductions in coverage is crucial for understanding insurance policies.