Fidelity Guarantee Insurance

WE will indemnify YOU against loss sustained by reason of any act of fraud/dishonesty committed by the Employee in connection with their/his/her employment as specified in the Schedule hereto during uninterrupted Service with YOU and within retroactive period as defined elsewhere in the Policy and discovered during the continuance of this Policy or within twelve months after the death, dismissal or retirement of such employee or within twelve months after this Policy has ceased to exist as regards such employee whichever of these events shall first happen.

• to pay more than one claim in respect of acts of any one of the Employees.
• In Retroactive period of Cover
  • for losses not discovered within the period of Insurance
  • in the event of non renewal or cancellation of this Policy, for losses not discovered within twelve months next following the date of expiry or the date of cancellation as the case may be  (provided only that if there be any other insurance in force during the said twelve months whether effected by YOU or on YOUR behalf or otherwise, this Policy shall  not cover or contribute to any loss covered by such other insurance).  The reinstatement provision will not apply to such losses discovered within twelve months from the date of non-renewal or cancellation.
  • for losses not sustained in within a retroactive period, not exceeding two years from the date of discovery of any such loss or losses.
• Provided that in such retroactive period, the insurance was continuously in force but in no event, WE shall be liable to pay any claim in respect of loss sustained prior to the inception of the original Policy.
• Further it is also provided that losses which become payable under this clause shall be subject to the terms, conditions, exception of the Policy in force on date of discovery or in case of non renewal / cancellation, on the last date when such policy was in force.

• Limit of liability

  OUR liability shall not exceed

  • In respect of any Employee the Sum Insured stated against his/her name or as declared herein.
  • In all claims under this Policy, the total Sum Insured.
• If the Policy shall be continued in force for more than the one period of Indemnity or if any liability shall exist on OUR part under this Policy and also under any other Policy in respect of fraud or dishonesty of the employee, OUR liability shall not be accumulated or increased thereby, but OUR aggregate liability during any number of periods of Indemnity and for any number of acts of frauds 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.

• Notice YOU will give every notice and communication in writing to OUR office through which this insurance is affected.
• Misdescription This Policy shall be void and all premium paid by YOU to US shall be forfeited in the event of misrepresentation, misdescription or concealment of any material information.
• Changes in Circumstances Unless WE are advised and OUR written approval be obtained, WE shall not be liable under this Policy –
  • in the event of any change in the nature of YOUR business or if the duties and conditions of service of employee shall be changed or if the remuneration of the Employee be reduced or its basis altered or if the precautions stated by YOU with regard to accounting be not duly followed or if YOU shall continue to entrust the employee with the monies or goods after having knowledge of any fact bearing on the honesty of the employee.
  • In the event of Checks for securing accuracy of accounts and stocks stated in the proposal not being duly observed.
• Identification of Employees For the purpose of identifying employee in all cases of change of residence or occupation or change of name whether by marriage or otherwise, due notice thereof in writing shall be given by YOU, to US.
• Claim Procedure and RequirementsUpon happening of an event giving rise or which may give rise to a claim
  • You or YOUR authorised representative shall forthwith give notice in writing to OUR nearest office with a copy to Policy issuing office with full particulars.  A written statement of the claim will be required and a claim form will be provided.  This written statement of claim alongwith supporting documents i.e. proofs, information and other evidences (verified by statutory declaration if so required) relating to the claim alongwith particulars of other Insurances covering the same risk must be delivered to US at YOUR expenses within 14 days of discovery of loss.
  • YOU shall lodge a complaint with the Police at the earliest after happening of the incident and take all practicable steps to apprehend the guilty person and prevent further loss.
• Claim Control and subrogation

WE are entitled to

• receive all information, proof of loss and assistance from YOU and any other person seeking benefit under the Policy
• take proceedings at OUR own expenses and for OUR own benefit, but in YOUR name to prosecute all claims and exercise all rights of action competent to YOU against the employee in respect of any act insured against in connection with which WE might make payment under this policy and YOU shall give to US all such information and assistance as may be reasonably required for maintaining such claims or rights.
• send OUR Authorised Representative in case of any loss to YOU and YOU will permit him/her at all reasonable times to examine into circumstances of such loss and YOU shall on being required to do so by US produce all books of accounts, receipts and documents relating to or containing entries relating to the loss in his/her possession and furnish copies of or extracts from such of them as may be required by US so far as they relate to such claims or will in any assist US to ascertain the correctness thereof or OUR liability under this Policy. 
• YOU shall if and when required by US, give information and furnish evidence to the Criminal Authorities of any act or acts insured against committed or supposed to have been committed by any employee in consequence of which a claim may be made under this Policy and YOU shall if so required by US, forthwith prosecute the employee for such acts subject to the payment by US in the event of a conviction of all expenses necessarily incurred by YOU in such prosecution.
• YOU shall if and when required by US but at OUR expenses if a conviction be obtained, use all diligence in prosecuting any of the employee to conviction for any act which such employee shall have committed and in consequence of which a claim will have to be made under such Policy and shall at OUR expenses give all information and assistance to enable US to use for and obtain reimbursement by any such employee by reason of whose acts or defaults a claim has been made or by the estate of such employee or money which WE shall have become liable to pay in respect thereof.
• It is also provided that an amount equal to any salary or commission which but for the acts on which the claim shall be found would have become payable by YOU to the employee in respect of whom the claim is made hereunder or any other money which shall be due to such employee from YOU shall be deducted from the amount payable under this Policy and all money, estate and effects of such employee in the hands of or received or possessed by YOU and all sums which may be or may prior to the settlements of claims become due from YOU to the employee and also all moneys or effects which shall come into YOUR possession or power for or on account of such employee after discovery of any act on part of such employee in respect  of which any claim shall be made on this Policy shall be applied by YOU in and towards making good the amount to his/her claim under this Policy in priority to any other claim to YOU upon such monies, estate or effects.
• Limit of Liability OUR liability under this Policy and/or any other Policy in respect of any defaulting employee shall not exceed the amount of Indemnity mentioned against his name.
• Fraud If any claim under this Policy is fraudulent in any respect with or without YOUR knowledge or if any fraudulent means or devices are used by YOU or on YOUR behalf to obtain any benefit under this Policy, all benefits and rights under the Policy shall be forfeited. 
• Contribution If YOU are or will hereafter be guaranteed by any other person, society or company or hold other security or Insurance against such loss as is hereby guaranteed against, WE shall bear the loss in rateable proportion only.
• Cancellation WE may cancel this policy by sending 7 days notice in writing by Regd.A.D. to YOU at YOUR last known address.  YOU will then be entitled to a pro-rata refund of premium for the unexpired period of this policy from the date of cancellation, which WE are liable to repay on demand. YOU may cancel this Policy by sending written Notice to US.  WE will then allow a refund after the premium based on the following retaining table:

• Adjustment of Premium If any part of premium or renewal premium is based on estimates furnished by YOU, YOU shall keep an accurate record containing all relevant particulars and shall allow US to inspect such record. YOU shall within one month after expiry of each period of insurance furnish such information as WE may require. Premium or renewal premium shall there upon be adjusted and the difference will be paid or allowed to US.
• Renewal Notice WE shall not be bound to accept any renewal premium or give notice that such renewal is due. Every Renewal premium which shall be paid and accepted in respect of this Policy shall be so paid and accepted upon the distinct understanding that no alteration has taken place in the facts contained in the proposal herein before mentioned and that nothing is known to YOU that may result to enhance OUR risk under the guarantee hereby given.