The policy can be taken by employers to cover infidelity of employees who hold positions of trust like handling cash and stock.
- The policy pays for the financial loss arising out of dishonesty/fraudulent act of the employee.
- The maximum loss payable is limited to the specified limit for that employee.
- The employer has the option to choose any of the following four alternatives:
(a) Individual Policy
Only one individual is guaranteed under this policy.
(b) Collective Policy
Under this option, entire staff or number of selected people are covered. The
policy is issued showing the names of the employees covered along with their
(c) Floating policy or Floater
This is an extension of collective policy where sum insured is specified for the
whole group rather than for each individual. The names of the group members
along with their designation is attached as schedule to the policy. Each claim
reduces the sum insured and has to be reinstated by paying extra premium.
(d) Position Policy
The policy schedule contains "Positions" rather than the names of individuals, with
the sum insured specified for each position. The liability is limited to the amount of
sum insured specified against position irrespective of number of people working in
The policy does not pay more than one claim in respect of liability/loss arising out of an
individual employee's act.
The policy pays for the financial loss arising out of dishonesty/fraudulent act of
employees covered under the policy.
The policy does not cover any loss:
- Arising out of suppression of fact affecting the risk at the time of effecting the policy
- Where there is any change in the circumstances or conditions of the said employment and the same is not communicated to the insurer
- For more than one claim in respect of any one employee
- Arising from non-observance or relaxation of checks and precautions
- Committed subsequent to an earlier act of dishonesty/fraud and which had come to the notice of the insured/insured's representatives/supervisor
- A rate of premium of between1.5% and 2.5% is charged, depending upon the limit per occurrence, the aggregate exposure, as well as the loss history/experience of the client or the industry concerned
- Business from Commercial Banks and related institutions are subject to the agreed rating pattern adopted for banks. Flexibility in rating may however arise where justifiable by experience
Completed proposal form giving all the information as are required for proper