- 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
- Administration Bond
- Receivership Bond
- Liquidators Bond
