Page 281 - Misc Ebook IC 78

Miscellaneous Insurance

premium amount is deducted from the claim amount
itself, while settling the claim. The policy is usually
valid for a year commencing as per the financial
year of the insured bank.

(iv) Retroactive Period - The retroactive period for
Banker's Indemnity Insurance is for two years from
the date of discovery of any such loss. For losses
not sustained within a retroactive period of 2 years,
provided the insurance was in force for the entire
retroactive period, the insurer is liable for the claim.

(v) Excess - In the Banker's Indemnity Insurance,
the insured has to bear an excess in respect of each
and every loss. If the claim is under ' On Premises',
'In Transit', 'Forgery or Alteration', 'Dishonesty', or
'Hypothecated Goods' , the insured has to bear 25%
of each loss or 2% of the basic sum insured
whichever is higher, but not exceeding Rs 50,000.

The excess will not apply to loss or damage arising
out of Fire, Riot, Srikes, Burglary and House

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