The most valued assets of an organization are its employees. Although most organizations take enough measure to ensure that they employ the best talent, selections can sometimes be wrong. The most honest of your employees can be the cause of losses, embezzlement and fraud. Insurance Companies offer fidelity Guarantee Insurance that covers you against these losses caused due to fraud or dishonesty.
What does this policy cover?
- It pays the actual financial 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.
Types of fidelity policies
- Individual policy: Under this policy only one individual is guaranteed per policy.
- Collective policy: This option covers the entire staff or number of selected people. One policy is issued showing amount of guarantee against the name of each individual covered.
- Floating policy or floater: This cover is an extension of the collective policy, where the sum insured for the whole group is mentioned and not for an individual. The names of the group member with their designations are mentioned in the schedule of the policy. Each claim reduces the sum insured and has to be reinstated by paying extra premium
- Position Policy: The Policy schedule contains 'positions' rather than the names of individuals unlike in collective policy with the sum insured specified for each position. The liability for each position is limited to the amount of sum insured against each position irrespective of the number of people working in that position.
What does this policy not cover?
The policy does not cover any loss if:
- Arising out of suppression of fact affecting the risk at the time of affecting the policy.
- There is any change in the circumstances or conditions of the said employment without the consent of the company.
- More than one claim in respect of any one employee.
- Arising outside India.
- Due to non-observance or relaxations of system of checks and precautions.
- By an act committed subsequent to an earlier act of dishonesty/fraud and which had come to the notice of the insured / insured's representative / supervisor.
- The policy does not cover any loss if:
- Premium can be collected in installments if the period of insurance is more than 12 months.
The rating depends on:
- Type of projects
- Period of projects
- Testing period
- Sum insured of Project
- Deductible Franchise
- Location of project
- Extensions opted
- The rating depends on: