Page 150 - Misc Ebook IC 78

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extra premium. A floating policy relieves the employer
of the necessity of fixing a suitable amount of guarantee
per individual employee. However, the sum selected
should be adequate to cover any single possible loss by
an employee or more employees in collusion.

(iv) Position Policy - This is similar to collective policy with
the difference that instead of using the names. The '
position' is guaranteed for a particular amount, so that a
change in the person holding the position does not affect
the cover. It is to be noted that the liability of insurance
in respect of each position is limited to the amount
guaranteed for the position, irrespective of the number
of persons working in that position. Here also, instead
of individual guaranteed amounts a single amount can
be chosen and 'Floated.'

(v) Blanket Policy - This policy covers the entire staff
without showing name or position. This policy is suitable
for an employer with a large staff and who carries
adequate enquiries about his employees antecedents
before recruitment. Those references have to be made
available to the insurers in the event of a claim.

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