Fidelity Guarantee

  • Scope
  • Intended to provide indemnity against pecuniary loss caused by infidelity of the employees.
  • The fraud and dishonesty should have been in course of discharging specified d duties and also in respect of money or good entrusted with the employees.
  • Policy ceases the moment the claim is settled for individual policies.
  • The name of the employee stands deleted the moment any claim involving his infidelity is reported and settled


  • Types of policies
  • Individual Policy
  • Collective Policy
  • Floating Policy
  • Positions policy
  • Blanket Policy
  • Exclusions
  • Arising anywhere outside India
  • Arising after change of employment conditions without consent of insurers
  • Repeat losses involving same person
  • Deviations from accepted internal check system


  • Underwriting Considerations
  • The relationship between annual emoluments and amount of guarantee sought
  • Financial status of the insured
  • Method of accounting and well established internal check and control system
  • Recruitment policy – references obtained while offering employment
  • Amount of counter guarantee available


  • Variant form of FG Insurance
  • Court bonds
  1. Administration Bond
  2. Receivership Bond
  3. Liquidators Bond
  • Customs Bond
  • Excise Bond