Page 19 - Misc Ebook IC 78

Miscellaneous Insurance

antecedents before recruitment. Those references
have to be made available to the insurers in the event
of a claim.

(vi) Excess floating policy - This is a combination of
collective policy and a floating policy. An employer
may safeguard himself against the unseen loss by
having a floating guarantee for any loss in excess
of the individual amounts set out in the schedule.

Ans.(b) Unlike other policies, fidelity guarantee policies stipulate
the time limit for discovery of losses. This is so because
the loss can occur over a long period without discovery.
Investigation of such losses would be troublesome and
recovery becomes legally and practically difficult, if not
impossible.

The customary time limit provided is the act should not
be discovered later than 12 months after the resignation,
dismissal, retirement or death of the employee, or nit
later than 12 months after the termination of the policy,
whichever be the earlier.

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