Page 307 - Misc Ebook IC 78

Miscellaneous Insurance

decreases by 10% but the sum insured can never go
below the original sum insured. Again the bonus can be
increased by 5%, if no claim occurs the next year.

This is a continuous process and can go on for years.
However, the total cumulative bonus can never
accumulate for more than 10 years.

Q9. Explain the types of Fidelity Guarantee
Insurance available in the market.

Ans. There are several types of commercial fidelity
guarantee insurance; they are as follows:-
(i) Individual Policy - This type of policy is used where
only one individual is to be guaranteed.

(ii) Collective Policy - Where the entire staff or a
number of selected staffs are to be covered, a
Collective Policy is to be issued. The policy
comprises of a schedule containing the names of
the employees to whom the guarantee applies with
a note of the duties of each employee. The amount
of guaranteed for each employee is specified against

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