Cash or Money in transit Insurance

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CASH / MONEY (IN TRANSIT) INSURANCE

Insurable Interest : The Insurer under this Policies indemnify the Insured against loss of Cash, Currency Notes, Coins, Securities for Money,Postal Orders,Stamps, and Cheques etc. whilst in transit enroute to final destination and/or in locked safe.

Scope of Cover : The Policy Covers the loss sustained in the following situations:

(a) The Cover is available for the loss of Cash drawn for the payment of wages,salaries and other earnings or for petty Cash in direct transit from the Bank to the Insured’s premises.

Risk starts from the time the Cash is received at the Bank by the Insured or the authorised employee of the Insured as detailed in the Policy until delivered at the premises or other place of disbursement (declared with the Insurer) and until there paid out.

(b) Loss of Cash by any cause whilst in the Insured’s premises in locked safe or strongroom and also damage to the safe or strongroom caused by burglars and thieves.The Cover also includes the loss of Cash even during non-business hours provided same is secured in locked safe or locked strongroom on the premises.

(c) Cheque drawn by the Insured to provide for such Cash are also Covered in transit from the premises to the Bank.

Cash other than described above in items 5.2 (a) ,5.2 (b) , and 5.2(c) in the personal custody of the Insured or the authorised employees of the Insured whilst in direct transit between the premises and the Bank or Post Office or any other offices with whom the Insuredhas a Cash dealing for the smooth promotion of trade activity.

Cash other than described in items 5.2 (a) ,5.2 (b) , 5.2(c) and 5.3 collected by and in the personal custody of the Insured or the authorised employees of the Insured whilst in transit to the premises or Bank within a period not exceeding 48 hours from the time of collecton.

Cash other than described in items 5.2 (a) ,5.2 (b) , and 5.2(c) whilst on the premises during business hours or whilst secured in locked safe or locked strongroom on the Insured’s premises out of business hours against the risk of burglary, house breaking, dacoity, robbery and hold up.

However, it may be noted that the loss due to theft of the cash is not covered.

The Insured’s liability under items 5.2, 5.3, 5.4 and 5.5 for any one occurance shall not exceed the amount declared against such items. The sum insured also includes loss sustained due to the damage to the safe.

Risks Excluded:

- Shortage of cash due to error or commission
- Loss of cash entrusted to any person other than the Insured or an authorised employee of the Insured.
- Loss of cash where Insured or his business staff is concerned as principle or accessories except loss due to fraud or dishonesty of any cash carrying employee of the Insured occuring whilst in transit and discovered within 48 hours.
- Loss occasioned by Riot, Civil Comotion or Terrorism.

Main factors considered issuance of policy :

- Insurance against Cash-in-Safe only may be arranged under this Policy. In which case physical survey of the risk shall be carried out by the Insurer if the indemnity is to be provided.
- In special cases Policy can be extended to cover loss of cash from the counters during working hours due to hold-up by anyone other than an employee of the Insured.
- The insurance can be extended to include assault and full infedility risks of messengers.
- The limit of liability for anyone carrying, which is maximum amount likely to be at the risk at any one time must be clearly spelt out to mention in the Policy.
- For Cash-in-Safe section, cover to be taken for the highest amount to be kept anytime in the safe/strongroom during the currency of the Policy.

The Policy should indicate the estimated amount of money in transit during the period of insurance. This is the amount on which the deposit premium is calculated initially at a fixed rate but the premium is finally adjusted at the end of each year of the insurance in accordance with the actual amount in transit which must be correctly declared by the Insured.

The premium rate for this clause of insurance is assessed by the Insurer only after a careful study of all circumstances appertaining to the transit, in accordance with the details furnished in the proposal form by the Insured and the past experience. The following factors are ordinarily taken into consideration for underwriting money-in-transit insurance proposals:-

1. The maximum amount carried in any single transit;
2. The number of employees carrying money, the duration of their service with the insured and whether any of them was involved in any previous default.
3. The mode of carriage of money i.e on foot, on bi-cycle, in rickshaw, in bus, in taxi or in the insured’s own vehicle;
4. The manner in which it is carried i.e on the body of the employee, in a closed and locked bag, and whether the bag is attached to the body of the messengers, or in a box securely locked;
5. Whether armed guards accompany the party carrying the money;
6. The places between which the money is carried and their location in relation to the neighbour-hood;
7. The route through which the money is carried, whether it is thoroughfare or traverses through any sparsely or lonely area and whether the route would be varied so as to prevent an ambush;
8. The time of the delay when the money is carried (this should normally be between 9 a.m and 5 p.m)
9. The distance over which the money is carried (this should not ordinarily exceed 15 miles);
10. The general condition of law and order in the area through which the money is carried.

Extended Covers Available:

The insurance can be extended to cover the following at an additional rate:

a) Full infedlity risks of the cash carrying messengers and /or employees.
b) Strike and Riot at an additional premium of 20% of the basic rate.
c) Assault Risks to unnamed cash carrying messengers and/or employees.
d) Money in till ( drawer for money in shop or bank etc.) and /or counter upto a reasonable limit.
e) Terrorism

Duties of Insured

• The Insured shall keep a daily record of the amount of cash contained in the safe or stronroom and such record shall be deposited in a secure place other than the said safe or strongroom for producing the same to the Insruer as documentary evidence in support of the claim under this Policy.

• The keys of the safe or strongroom shall not be left on the premises out of business hours unless the premises are occupied by the Insured or any authorised employer of the Insured in which case such keys if left on the premises shall be deposited in a secure place not in the vicinity of the safe or strongroom.

• The Policy does not cover loss of cash obtained from safe/strongroom following the loss of the key to the said safe/strongroom or any duplicate thereof belonging to the Insured unless such key has been obtained by threat of violence.

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CASH / MONEY (IN TRANSIT) INSURANCE