Page 87 - Misc Ebook IC 78

Miscellaneous Insurance

the defaulting employee to set an example to deter
the other employees.

(iv) Subrogation - After the settlement of a claim, the
insurers are entitled to take over the rights of the
employer against employing up to the loss amount,
and prosecute all claims and exercise all the rights
of action against that employee, if necessary on
behalf of the employer, but at the insurer's cost.

(iv) Contribution -the policy would pay only pro rata
with any other guarantee, whether by any policy or
otherwise, held by the employer on the date of loss.
The employer is bound to disclose to the insurers
the existence of any such guarantees, their
termination or expiry.

(v) Termination of policy - the insurers reserve the
right to cancel the policy at any time after due
intimation to the employer, and by returning a
proportion of the premium corresponding to the
unexpired period of the policy.

Sashi Publications - www.sashipublications.com 83

Copyright@ The Insurance Times. 09883398055 / 09883380339