Insurable Interest

The Insurer under this Policies indemnify the Insured against loss of Cash, Currency Notes, Coins, Securities for Money, Postal Orders, Stamps and Cheques etc. whilst in transit en-route to final destination and/or in locked safe.

Scope of Cover

The Policy Covers the loss sustained in the following situations:

The Cover is available for the loss of Cash drawn for the payment of wages, salaries and other earnings or for petty Cash in direct transit from the Bank to the Insured’s premises.

Risk starts from the time the Cash is received at the Bank by the Insured or the authorized employee of the Insured as detailed in the Policy until delivered at the premises or other place of disbursement (declared with the Insurer) and until there paid out.

However, it may be noted that the loss due to theft of the cash is not covered.

Risks Excluded

  • Shortage of cash due to error or commission
  • Loss of cash entrusted to any person other than the Insured or an authorized employee of the Insured.
  • Loss of cash where Insured or his business staff is concerned as principle or accessories except loss due to fraud or dishonesty of any cash carrying employee of the Insured occurring whilst in transit and discovered within 48 hours.
  • Loss occasioned by Riot, Civil Commotion or Terrorism.

Main Factors Considered Issuance of Policy

The premium rate for this clause of insurance is assessed by the Insurer only after a careful study of all circumstances appertaining to the transit, in accordance with the details furnished in the proposal form by the Insured and the past experience. The following factors are ordinarily taken into consideration for underwriting money-in-transit insurance proposals:

  • The maximum amount carried in any single transit;
  • The number of employees carrying money, the duration of their service with the insured and whether any of them was involved in any previous default.
  • The mode of carriage of money i.e on foot, on bi-cycle, in rickshaw, in bus, in taxi or in the insured’s own vehicle;
  • The manner in which it is carried i.e on the body of the employee, in a closed and locked bag, and whether the bag is attached to the body of the messengers, or in a box securely locked;
  • Whether armed guards accompany the party carrying the money;
  • The places between which the money is carried and their location in relation to the neighbor-hood;
  • The route through which the money is carried, whether it is thoroughfare or traverses through any sparsely or lonely area and whether the route would be varied so as to prevent an ambush;
  • The time of the delay when the money is carried (this should normally be between 9 am and 5 pm)
  • The general condition of law and order in the area through which the money is carried.

Extended Covers Available

The insurance can be extended to cover the following at an additional rate:

  • For non-arms guard an additional premium of 25% of the basic rate.
  • Assault Risks to unnamed cash carrying messengers and/or employees.
  • Money in till (drawer for money in shop or bank etc.) and /or counter up to a reasonable limit.

Duties of Insured

  • The Insured shall keep a daily record of the amount of cash contained in the safe or strong room and such record shall be deposited in a secure place other than the said safe or strong room for producing the same to the Insurer as documentary evidence in support of the claim under this Policy.
  • The keys of the safe or strong room shall not be left on the premises out of business hours unless the premises are occupied by the Insured or any authorized employer of the Insured in which case such keys if left on the premises shall be deposited in a secure place not in the vicinity of the safe or strong room.
  • The Policy does not cover loss of cash obtained from safe/strong room following the loss of the key to the said safe/strong room or any duplicate thereof belonging to the Insured unless such key has been obtained by threat of violence.

Note

  • Particulars of cover liability and exclusion given above are not complete or exhaustive.
  • Our nearest Branch Office may be approached for complete details.