This Policy provides cover against the financial loss suffered by the Insured as a result of fraud/dishonesty of employees in the course of Employment of the insured up to the Sum Insured limit selected per employee. This policy is suitable for employers to cover the infidelity of employees occupying positions of trust involving duties such as handling cash, storekeeping etc. Policy covers the risk of direct financial loss due to an act of the employee involving Forgery, Embezzlement, Larceny ">Larceny , Fraud or dishonesty, fraudulent conversion of money or money worth or goods.
Scope of cover
The insured is covered against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed
On or after the date of commencement of this policy
During uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof
In the case of death, dismissal or retirement of the Employee with twelve calendar months of such death, dismissal or retirement whichever of these events shall first happen.
The Policy does not pay more than one claim in respect of liability/loss arising out of an individual employee's acts. or the value of the actual cash value of money, bullion, Hundi, stamps, cheques or similar instrument, stocks held on trust on the day upon which the loss is discovered, whichever is lower.
Number of claims resulting from same fraudulent or dishonest act or a series of fraudulent or dishonest and the same originating cause by the same person, source or event shall be deemed to be one claim subject to a single employee sum insured under the Policy. The liability of the Company shall not exceed the sum insured stated against his name in respect of any employee or the total sum insured as declared respect of all claims under this policy,
An employee must be responsible. Typically, fidelity policies don't cover theft or fraud by volunteers or subcontractors.
The loss has to relate to the employee's normal duties.
The loss has to be the result of theft and not negligence.
The loss has to be direct.
Sum Insured /Types of policies
Individual Policy: Individual policy issues where one individual is to be guaranteed. Name of the employee, occupation/Duties and the Sum Insured should be clearly stated.
Collective Policy: Collective policy will be issued to cover several employees of the same employer for varying amounts of Indemnity. The policy should incorporate a schedule containing the names and duties of guaranteed employees with the amount of guarantee set against each name.
Unnamed Floater Policy: Unnamed floater policies are normally issued for a group of employees of the same status and class, duties and responsibilities. Under this policy, the number of person to be covered has to be identified and Sum Insured which is fixed will be floating among the insured persons.
Premium depends on the position of the employees covered and their functions, system of checks and balances, internal controls, and systems of audit
Basis of Claims Settlement
Any money of the Employee in the hands of the Insured which in the normal course would have been due to the Employee from the Insured shall be deducted from the amount payable.
If the Insured is guaranteed by any other person, society or company against such loss, the Company shall bear only relatable proportion of the loss.
The Company shall be entitled at its own expense, in the name of the Insured to prosecute all claims and exercise all rights of action competent to the Insured against the Employee in connection with whom it has made a payment under the policy.
Unexplained shortages of money or goods which cannot be attributed to an employee or employees acting in collusion Losses occurring outside the territorial limits
Losses discovered later than the discovery period noted
Theft or fraud by an employee subsequent to discovery of actual or suspected theft or fraud
Loss of interest
Penalties or fines
Consequential loss of any kind