The Policy covers financial loss suffered by the insured as a result of forgery, embezzlement, larceny of fraud/dishonesty or fraudulent conversion of money or money’s worth or goods by the salaried employees handling any goods and/or money with a system of keeping records of all transactions.
The policy covers
- The actual loss sustained as a result of the dishonesty/fraudulent act of the employee after adjusting any salary, commission security deposit or any other money standing to the credit. The loss is payable up to the limit specified for the employee.
- The policy does not pay more than one claim in respect of liability/loss arising out of an individual employee’s acts.
The Policy does not cover any loss if
- Arising out of suppression of act affecting the risk at the time of effecting the policy.
- There is any change in the circumstances or conditions of the said employment without the consent of the company.
- More then one claim in respect of any one employee
- Loss arising outside India.
- Loss due to non-observance or relaxation of system of checks and precautions.
- Loss by an act committed subsequent to an earlier act or dishonesty/fraud and which had come to the notice of the insured/Insured’s representative/supervisor.
The Policy provides for following extensions
- Coverage for group of employees both on named and unnamed (i.e. on cadre/designation ) basis with individual limits.
- Coverage for group of employees with a floating limit for all the employees or separate limit for all employees in one particular cadre/designation.