Page 225 - Misc Ebook IC 78

Miscellaneous Insurance

schedule. Any alterations required because of
additional recruitment, appointments, terminations
etc can be made by an endorsement altering the
schedule, without issuance of a fresh policy.

(iii) Floating or Floater Policy - This is an extension
of the 'Collective Policy' where the name and duties
of the individual to be covered are noted in the
schedule, but instead of the individual amounts of
guarantee, a specifies sum of guarantee is 'floated'
(shared) over the whole group.

A claim in respect of any one employee will then
reduce the guarantee by that amount until renewal.
The original sum can also be reinstated by payment
of an 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.

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