In India, the Insurance Regulatory and Development Authority of India (IRDAI) provides broad guidelines for life insurance, including what exclusions insurers can apply. While each insurer might add its own terms, some standard exclusions are commonly permitted and follow IRDAI norms.
Here are the standard life insurance exclusions as generally allowed by IRDAI:
1. Suicide Exclusion
This is the most common and standardized exclusion under IRDAI guidelines.
IRDAI standard clause (effective for most policies):
"If the Life Assured dies by suicide within 12 months from the date of commencement of risk or from the date of revival of the policy, the nominee shall be entitled to 80% of the premiums paid, provided the policy is in force."
✅ The full sum assured is not paid in such cases. ✅ Only 80% of premium paid is refunded (excluding taxes and rider premiums). ✅ This clause applies to both new policies and revived lapsed policies.
2. Death Due to Participation in Hazardous Activities
Although not always stated explicitly in IRDAI rules, insurers may exclude coverage for death due to:
Participation in dangerous sports (e.g., skydiving, mountaineering)
Military or war-like operations (especially in group life policies)
These need to be clearly stated in the policy document, and customers should be informed.
3. Acts of Criminal Nature
Insurers may deny a claim if the insured dies while:
Committing a criminal act
Engaging in illegal activities
Again, this must be clearly mentioned in the policy terms.
4. War or Terrorism (Optional Exclusion)
Some life insurance policies may exclude deaths caused directly due to:
War, invasion, or hostilities
Acts of terrorism
However, many life policies in India DO cover terrorism-related deaths, unless specifically excluded.
IRDAI Rules on Exclusions
Insurers must clearly disclose all exclusions at the time of sale.
Exclusions cannot be arbitrary or hidden in complex language.
For standard products like Saral Jeevan Bima, exclusions are limited and defined by IRDAI to keep it simple.