Limitation of benefits

A limitation of benefits is a contractual or statutory rule that narrows the insurer’s duty to perform. It may cap the amount payable, shorten the duration of payments, exclude certain causes, impose waiting periods, apply deductibles, or reduce benefits for contributory conduct. In Switzerland, such limitations are interpreted in light of the policy wording, mandatory insurance law, transparency requirements, and the reasonable expectations created by standard terms. Limitations differ from complete exclusions: they usually accept coverage in principle but restrict the benefit. Clear drafting is particularly important in consumer and mandatory insurance contexts.