Fidelity Guarantee
What is Fidelity Guarantee?
Fidelity Guarantee Insurance provides coverage to employers against financial loss caused due to dishonesty, fraud, or theft committed by their employees. It safeguards businesses from risks related to employee misconduct, particularly in roles involving finance, stock handling, and sensitive operations.
Here's a breakdown of the key features
Key Features policy covers:
- Financial Loss
- Employee Dishonesty
- Specific Types of Loss
- Employee Coverage
Scope
The Company agrees to indemnify the insured against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed
- On or after the date of commencement of this policy
- During uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof
- 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.
Benefits Of Fidelity Guarantee:
Benefits
- Protection from Financial Losses
- Asset Protection
- Peace of Mind
- Potential for Risk Management
- Business Continuity
Important Considerations
- Policy Limits:The policy will have a limit on the amount of loss covered, so businesses should choose a limit appropriate for their risk profile.ÂÂ
- Exclusions:There may be specific exclusions within the policy, so it’s important to understand what is not covered.ÂÂ
- Reporting Requirements:There are typically requirements for reporting losses and cooperating with the insurer.ÂÂ
- Premium:The cost of the policy will depend on factors like the size of the business, the nature of its operations, and the coverage limits.ÂÂ
Fidelity Guarantee insurance is a valuable tool for businesses to manage the risk of employee dishonesty and protect their financial well-being
Conditions
The liability of the Company shall not exceed
- In respect of any employee the sum insured stated against his name or as declared herein.
- In respect of all claims under this policy, the total sum insured.
- 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.
- The Company shall not be liable to pay more than one claim in respect of the action of any one employee.
Claim Process
- Immediate notification of the loss to be given to Insurer.
- Immediate intimation to the Police and filing a FIR
- Submission of claim form giving description of loss and supporting documents.
- Take all necessary practicable steps to recover the property lost, apprehend the culprits and take appropriate action against them.
- Conduct a thorough internal inquiry and make the findings available to the insurers.
- Take all practicable steps to withhold any monies due to the defaulting employees.
