Which of the following is NOT included in supplementary payments under a liability policy?

In a liability policy, supplementary payments are designed to cover a range of expenses that arise from a claim without reducing the limits of liability coverage. The costs typically included are defense costs, which help cover the expenses incurred while defending against a claim; first aid expenses, which cover immediate medical assistance provided at the scene of an accident; and loss of earnings for the insured, which compensates for income lost due to the necessity of attending court or other related proceedings.

The option referring to costs of claims that exceed the policy amount is not included in supplementary payments. This is because supplementary payments are intended to provide additional financial support that does not deplete the actual limit of liability coverage for the claim itself. Therefore, any costs that go beyond the limit of the policy would not be considered supplementary. This distinction is crucial, as supplementary payments serve to enhance the policyholder's coverage and protect them from incurring out-of-pocket expenses related to defense and immediate response, rather than covering losses that exceed the established insurance limits.