The policy covers the employer against any loss of money and/or property or financial loss incurred as a result of an employee’s impropriety, dishonesty, or infidelity, whether direct or indirect.
The insurance company agrees to indemnify the insured against direct pecuniary loss sustained due to any act of fraud or dishonesty committed:
- On or after the policy’s commencement date.
- During uninterrupted service with the insured and discovered either during the policy term or within twelve calendar months of its expiration.
- Within twelve calendar months of the employee’s death, dismissal, or retirement, whichever occurs first.
Conditions
The liability of the insurance company shall not exceed:
- In respect of any employee, the sum insured stated against their name or as declared in the policy.
- In respect of all claims under this policy, the total sum insured.
- If this policy is continued for more than one period of indemnity or if liability exists under both this policy and any other policy for fraud or dishonesty by the same employee, the total liability shall not be cumulative. Instead, the insurance company’s aggregate liability, regardless of the number of indemnity periods or fraudulent acts, shall not exceed the greater of the sum insured under this policy or any other applicable policy.
- The insurance company shall not be liable for more than one claim in respect of the actions of any single employee.
Exclusions
The insurance company shall not be liable for:
- Loss or damage resulting from or contributed to by:
- Any partner in or of the insured, to the extent that they would benefit from the indemnity granted under this policy.
- Any director or member of the insured unless they are also an employee.
- Any employee once the insured becomes aware that such employee has committed fraud or dishonesty.
- Any consequential losses of any kind arising from the defined events.
- Any company or legal entity acquired during the policy period.
- Any defined event resulting from the dishonest:
- Manipulation of, input into, suppression of input into, destruction of, or alteration of
- Any computer program, system, data, or software by an insured employee in the insured’s Electronic Data Processing Department or area.
- Any insured event in which a partner, director, or member of the insured is or has been directly involved—liability shall only extend to the participation/shareholding of uninvolved partners, directors, or members.
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How to Claim
In the event of an incident giving rise to a claim under the policy, the following steps should be followed:
- Report the incident to the police immediately and take any other practicable steps to discover the thieves and recover the money and or property lost.
- Immediately notify the insurance company by phone, email, fax or in writing upon discovery of the loss, act or defalcation by employee(s).
- Deduct any money due to or belonging to the defalcator(s) from the amount payable under the policy.
- Submit a Claim Form duly filled in to the insurance company.
- Give the insurer particulars of any other insurance covering the same event.
- Give the insurer written details of any claim.
- Give the insurer such proof, information and sworn declarations it may require from time to time and forward to the insurer immediately any document or details of any communication received in connection with a claim.
- Take immediate steps to minimize the loss, to prevent a similar occurrence and to ensure that all rights against any party who may be responsible for the loss are preserved.
Essential Documents:
- Claim Form duly filled in with supporting documents
- Written Statement of Claim on the defalcated amount
- Documents substantiating the defalcated amount
- Police Report
- Internal Inquiry Report on the defalcation
- Employment and termination letter(s) of the defalcator(s)
- Last drawn salary slip (s) and a statement of the balance amount due/amount of claim
- Any additional documents and information that may be required during investigations by Insurers or Adjusters
Note: Policy details given are indicative, not exhaustive. Please contact your nearest Mirai General Insurance office for further details.
