This paper presents a novel approach based on the loci of instantaneous symmetrical components called "Wing Shape" which requires the measurement of three input stator currents and voltages to diagnose interturn insulation faults in three phase induction motors operating under different loading conditions. In this methodology, the effect of unbalanced supply conditions, constructional imbalances and measurement errors are also investigated. The sizes of the wings determine the loading on the motor and the travel of the wings while their areas determine the degree of severity of the faults. This approach is also applied to detect open circuit faults or single phasing conditions in induction motors. In order to validate this method, experimental results are presented for a 5 hp squirrel cage induction motor. The proposed technique helps improve the reliability, efficiency, and safety of the motor system and industrial plant. It also allows maintenance to be performed in a more efficient manner, since the course of action can be determined based on the type and severity of the fault.