Money Insurance

A Money Insurance policy indemnifies the insured against the loss of money in transit by the insured or the insured’s authorized employees caused by robbery, theft, or any other unforeseen event. Additionally, the policy also covers the loss of money caused by burglary, housebreaking, robbery, or holdup while the money is kept at the insured’s premises in safes or strong rooms.

Definitions of Money:
Money is defined to include cash, bank drafts, currency notes, treasury notes, cheques, postal orders, and current postage stamps.

Coverages

  • Money in transit
  • Money for payment of wages, salaries, and other earnings
  • Petty cash in direct transit from the bank to the insured’s premises
  • Wages in transit from the bank to the insured premises
  • Money, other than the above, collected by and in the personal custody of the insured or the insured’s authorized employees while in transit to the premises or bank
  • Cash in transit from the insured’s premises to the post office for the purchase of postal orders, money orders, postage stamps, or revenue stamps, and vice versa
  • Unpaid wages, etc., from insured premises to the bank
  • Money retained at the insured’s premises in a burglar-resistant safe or strong room
  • Money in a safe:
    • Cash (other than described above) on the premises during business hours or while secured in a locked safe or locked strong room on the insured’s premises out of business hours, against the risk of burglary, housebreaking, and holdup.

Key Clauses:

  • Loss of cash taken from the safe by using the key or any duplicate key belonging to the insured is not covered unless such key was obtained through violence or threats of violence or by force. This is known as the “key clause”. It’s important to note that the use of force doesn’t need to be against a person, it can be against property as well. For instance, if the key to a safe in a cupboard is removed after the cupboard is forcibly opened, the loss is covered by the policy. The key clause cannot be waived, even with the payment of an extra premium.
  • A complete list of the amount of cash in the safe should be securely kept in a place other than the safe. The liability of the insurer is limited to the amount recorded in such records.

Add-On Covers

  • Riot
  • Strike
  • Terrorism
  • Infidelity of employees
  • Disbursement risk

Exclusions

  • Shortage due to error or omission
  • Loss of cash entrusted to anyone other than the insured or the insured’s employee
  • Losses due to fraud or dishonesty of an employee of the insured
  • Losses covered by other policies
  • Losses occurring due to the use of keys to the safe unless obtained by force or threat
  • Money carried under a contract of affreightment, theft from an unattended vehicle, and consequential loss
  • Unexplained losses and mysterious disappearances
  • Loss or damage due to natural disasters (floods, cyclones, earthquakes, etc.), war, and warlike operations
  • Loss due to any activity in which the insured, his/her family member, or employee is involved as a principal or party, except for dishonesty by cash-carrying employees specifically covered.

Key Benefits

  • Comprehensive coverage for risks involving money and monetary transactions
  • Reasonable premiums
  • Additional cover for loss of money in safes due to housebreaking or burglary after office hours
  • Payment of premiums based on estimated money carried
  • Adjustment of premiums at the end of the year based on actual money carried

Claim Process

In the event of a loss, the following actions must be taken:

  1. Notify the insurer about the loss and submit a full written statement of the claim, including the nature and extent of the loss and an estimate of the loss. Delayed notification might jeopardize the claim.
  2. Take necessary steps to minimize the loss and reduce liability.
  3. Assess the proximate cause of the loss and determine whether it falls within the scope of the policy.
  4. Cooperate fully with the insurer and the appointed surveyor for loss assessment.
  5. Provide all required records and documentation for the surveyor or insurer to evaluate the loss and the liability under the policy.
  6. Submit documents such as the claim form, a copy of the policy, a written statement of the amount lost, and the FIR copy.
  7. Keep the damaged property under safe custody until advised by the surveyor/insurer regarding its disposal.
  8. Identify the insured property.