The aim of this article is to present a fault diagnosis scheme for the case of squirrel–cage Three Phase Induction Motors based on uncertainty bounds violation conditions. The suggested scheme has the capability to diagnose two types of faults: a) broken rotor bar and b) short circuit in stator winding. The fault diagnosis is being performed through a two steps procedure. In the first step the parameters of the healthy induction motor are being identified by utilizing a Set Membership Identification approach, where corresponding uncertainty bounds are also being provided. In the second step, specific proposed bound violation conditions for the fault detection and fault diagnosis are being on–line evaluated during a sliding time window. Mult...