Page 407 - IC38 GENERAL INSURANCE

F. Bankers Indemnity Insurance

This comprehensive cover was drafted for the banks, NBFC's and other
institutions who deal with operations involving money, considering the special
risks faced by them regarding money and securities.

1. Coverage under Bankers Indemnity Insurance

There are different variations to this policy based on the requirement of
banker.

a) Money securities lost or damaged whilst within the premises due to fire,
burglary, riot and strike.

b) Loss suffered due to any cause whatsoever including negligence of the
employees, when the property is carried outside the premises in the
hands of authorized employees.

c) Forgery or alteration of cheques, drafts, fixed deposit receipts etc.

d) Dishonesty of employees with reference to money/securities or in
respect of goods pledged.

e) Dispatches by registered post parcels.

f) Dishonesty of appraisers.

g) Money lost while in the hands of agents of the bank like „Janata Agents‟,
„Chhoti Bachat Yojana Agents‟.

The cover is issued on discovery basis, this means the policy will respond to a
period during which a loss is discovered and not necessarily the period when it
occurred. But a cover should have been in existence when the loss actually
occurred.

Conventionally losses within a period of 2 years prior to date of discovery
only are payable, subject to the cover having been continuous, from a date
earlier than that when the loss has occurred.

2. Important exclusions

These include:

a) Trading losses

b) Negligence

c) software crimes and

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