Fidelity Guarantee Insurance

Highlights

The policy covers the employer in respect of any direct financial loss which he may suffer as a result of employee’s dishonesty.

Scope

The Company agrees to indemnify the insured against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed
1. On or after the date of commencement of this policy
2. During uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof
3. 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.

Conditions

The liability of the Company shall not exceed
1. In respect of any employee the sum insured stated against his name or as declared herein.
2. In respect of all claims under this policy, the total sum insured.
3. If this policy shall be continued in force for more than one period of indemnity or if any liability shall exist on the part of the Company under this Policy and also under any other Policy in respect of fraud or dishonesty of the employee, the liability of the Company hereunder shall not be accumulated or increased thereby but the aggregate liability of the Company during any number of periods of indemnity and for any number of acts of fraud or dishonesty committed by the employee shall not exceed the sum insured hereunder or the sum insured under any other such policy as aforesaid whichever is greater.
4. The Company shall not be liable to pay more than one claim in respect of the action of any one employee.

Exceptions

The Company shall not be liable in respect of losses arising elsewhere than in India.

1. Immediate notification of the loss to be given to Insurer.
2. Immediate intimation to the Police and filing a FIR
3. Submission of claim form giving description of loss and supporting documents.
4. Take all necessary practicable steps to recover the property lost, apprehend the culprits and take appropriate action against them.
5. Conduct a thorough internal inquiry and make the findings available to the insurers.
6. Take all practicable steps to withhold any monies due to the defaulting employees.

1. What is Fidelity Insurance ?
The policy covers direct financial loss incurred due to infidelity of employees.

2. Does it cover only financial loss ?
Yes. The indemnity is for the amount of money lost or for the value of the stock lost.

3. Does the policy covers dishonesty of employees of contractors or sub-contractors also ?
The extension can be given to cover employees of contractors and sub-contractors.

4. Whether bigger organizations are more prone to this type of loss or smaller ones ?
Smaller organizations are more prone to such losses specially where employee changes are more frequent.

5. Is it necessary to give names of all employees to be covered under the policy ?
The policy can be issued both on named and unnamed basis. The policy can also be issued covering employees by their designations / categories.

6. Is it required to give amounts of insurance for each employee ?
separate amounts can be given if number of employees is small. For a large no. of employees, a common overall sum insured can be selected with respective limits for different categories of employees.