Money Insurance
This cover is useful for business concerns wherein money is constantly in transit from banks or other sources for the payment of salaries as well as for normal day-to-day transactions.
Money here means cash, bank drafts, currency notes, treasury notes, cheques, postal orders and current postage stamps and Banks means banks of every description, post offices and the government treasury.
The coverage available under the Policy are:
1. Covers Loss of Money in Transit due to robbery, theft or any other fortuitous cause in following cases:
Money for payment of wages, salaries, petty cash, etc., in direct transit from bank
to the premises of the insured .The policy provides cover from the time of withdrawal
till the time of delivery/ disbursement provided money is kept in locked safe or strong
room after office hours. Cheques drawn for withdrawal are also covered.
Money other than as described in I(a) in personal custody of the insured or his
authorized employees while in direct transit to premises or bank/ post office.
Money other than as described in I(a)&(b) collected by and in personal custody of the
insured or his employees while in transit to his premises or bank within a period not
exceeding 48 hours from time of collection. If the insurance protection is needed for a
longer period of time than 48 hours this can be covered on terms to be negotiated with
the insurance company.
Cash other than as described in I(a) on the premises of the insured during business
hours or after business hours in locked safe/ strong room against risk of burglary,
housebreaking and hold-up.
Cash other than as described in I(a) on the premises of the insured during business
hours or after business hours in locked safe/ strong room against risk of burglary,
housebreaking and hold-up.
2.Additional Coverages:
The insurance can be extended to include assault on, and loss of money due to
infidelity of messengers.
The insurance can also be extended to cover loss of cash from the counters during
working hours but only if the cashier is held up or threatened by anyone other than an
employee or family member of the insured. Insurance against only Cash-in-safe can also
be taken.
Coverage against strike, riot or terrorism is also available.
The following factors need to be kept in mind in deciding the sum insured .
For money in transit: First, the maximum amount of money expected to be in transit at
any one time during the policy period has to be clearly mentioned at the time of taking
the policy. This becomes the maximum.
probable risk for the insurance company who will not be liable to pay for any money
lost in excess of this limit.
The second limit to be decided is the estimate of the total amount of money, which may
be carried during the entire period of insurance cover. This amount becomes the sum
insured for the policy
The records pertaining to the amounts of money in transit should be carefully kept by
the insured and can be inspected by the Insurers at any time.
For money in safe: The sum insured should be the highest amount that could be in the
safe at any particular time during the tenure of the policy.