Page 347 - Misc Ebook IC 78

Miscellaneous Insurance

(iii) The insured bank is expected to take all reasonable
steps to safeguard the property insured, to secure
all doors, windows and other openings, safe, strong
rooms etc.

(iv) The accounts are to be audited annually by the
Banks Auditors.

(v) Any amount payable by the insured to the employee,
in respect of whom, a claim is made, are to be
adjusted in priority with the claim amount. Any
money recovered after claim settlement becomes
the property of Insurance Company.

Q5.a) A Money Policy is issued with a par carrying
limit of Rs.8 lacs and an estimated annual
carrying limit of Rs.1 crore. One day, when
Rs. 10 lacs cash was being brought from the
bank, one of the two bags containing Rs.5 lacs
was snatched in a hold up. What would be the
liability of the Insurance Company?

Ans. Par carrying limit = Rs.8 lacs
Estimated annual carrying limit = Rs. 1 crore

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