Page 37 - Misc Ebook IC 78

Miscellaneous Insurance

sum insured in respect to any looses caused by the
omission of any one person. The reinstatement
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.

(iii) 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.

However the insurer is in no way liable to pay any
claim in respect of any loss or damage sustained
prior to inception of the original policy. This policy is
on discovery basis and not on occurrence basis.

Therefore for a particular policy to be operative,
the loss has to be discovered during the policy period.
The relevant occurrence could be within the

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