Features

• 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 limits.

(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 that position.
The policy does not pay more than one claim in respect of liability/loss arising out of an individual employee’s act.

Main Benefit

The policy pays for the financial loss arising out of dishonesty/fraudulent act of employees covered under the policy.

Exclusions

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

Premium

• A rate of premium of between 1.5% 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

Requirements

Completed proposal form giving all the information as are required for proper underwriting.