What are covered under this Policy?
This insurance is targeted to cover financial losses mentioned in the following by employees such as cashiers, finance or sales personnel and other such employees holding position or trust in your organization.
- loss of money or money’s worth which is confidently entrusted by business,
- loss of money or money’s worth accepted by employees in line of duty
The term “Money” shall be deemed to mean and to include cash and/or any other financial instrument that is easily convertible into cash.
Foreign currency shall be equivalent to local currency at the prevailing Central Bank Mean rate at the time of loss.
Types of Coverage
This policy provides coverage against any direct pecuniary loss sustained by the employer through the following acts committed by his employees in connection with their occupation and duties.
- Default, Remissness
- Fraud, Larceny
- Degeneration, Dishonesty
- Negligence, Embezzlement
- Forgery, fraudulent conversion
Major Exclusion under this Policy
Some of the major exclusions under the policy are:
- any fraudulent Claims,
- any loss due to war (whether war be declared or not), Civil war, terrorism, strike, riots, civil commotion to a popular rising, rebellion, revolution
- any loss due to Acts of nature (flood, wind storm, earthquake, etc …)
- other exclusions as defined in the Policy
Types of Policies
The cover may be required in respect of a single employee or a group of employees. There are three types of Policies normally issued by the Insurer for this clause of business namely “Individual Policy”, “Collective Policy” and “Position Policy”.
- Individual Policy: This Policy covers and individual for a stated amount.
- Collective Policy: This Policy covers a group of employees. The Insured decides the amount of guarantee required for each individual according to his or her responsibility and position. A schedule is included in the Policy.
- Position Policy: This Policy covers the amount of sum insured specified against position irrespective of number of people working in the position. The policy schedule contains “Positions” rather than the names of individuals, with the sum insured specified for each position.