Money Policy

This insurance policy protect your property like buildings, plant and machinery, stocks and other installation against losses or damage caused by fire, flood, storm, earthquake, terrorism, vandalism, theft, smoke, hail, the impact of snow and ice, lightning, accidental damage and breakdown and more. This policy cover the cost to replace or repair the property by providing monetary compensation.

Introduction

Who can take this Policy?

Coverage

Add on Covers

Basis of Sum lnsured

Exclusions

Money Insurance policy provides cover for loss of money in transit between the insured's premises and bank or post office, or other specified places occasioned by robbery, theft or any other fortuitous cause.

Money In transit Policy should be taken in a business wherein there is a regular cash generation and it needs to be submitted to the bank/ Head office through transit.
Money in Safe Policy should be taken in a business wherein the cash sales generated is stored in safe at the end of the day.

Section I :

Money in transit under the following heads : Cash, Bank Drafts, Currency Notes, Treasury Notes, Cheques, Postal Orders and Postage Stamps.

Section II :

Money in Safe/Till/Counter

Risk of infidelity of the employees
Terrorism and disbursement risk
PA cover for cash carrying person

Estimated amount of money in transit during the year is considered for calculation of premium.
Sum Insured of the policy is the limit of liability under the policy.

Shortage due to error or omission
Riot, strike, civil commotion unless specifically agreed for
Terrorism
Unexplained losses and mysterious disappearances
Losses due to the fraud/dishonesty of the employee of the insured.
Loss or damage due to flood, cyclone, earthquake and other convulsions of nature, war and war like operations
Loss or damage arising out of use of key(s) to safe(s) or strong room unless such keys are obtained by force or threat
Money entrusted to any person other than the Insured or an authorized employee Legal liability, consequential loss, theft from an unsecured vehicle and consequential loss
Money entrusted to a carrier
Loss due to any act in which the Insured, his/her family member/employee is involved as principal or party except dishonesty of cash carrying employee where specifically covered
Such dishonest activity of cash carrying employee shall be discovered within 48 hours.
Money carried under contract of affreightment

IMPORTANT POINTS TO REMEMBER WHILE BUYING THE POLICY

Money Transit Details should be clearly mentioned, including public transport

Transit Details - like From/To should be mentioned in policy along with authorized person/s or name/designation who is carrying the money.

Single Carrying Limit should be higher

Single Carrying Limit under Money in Transit should be considered while purchasing Money in Transit Insurance. It is the maximum amount of claim that can trigger in single limit.

Personal Accidental cover for person who is carrying cash

Personal Accidental cover is an additional cover with this policy that can be obtained with additional premium.

Key Documents at The Time Of Claims

General Claim
Intimation Format

Immediate Action Client
Should Take

Indicative General Documents
for Settlement of Claims

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Downloads

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Claim Form

FAQ's

PREMIUM

COVERAGES

CLAIMS

OTHERS

How premium is charged under Money Insurance Policy?

Premium chargeable depends on single carrying limit, distance involved and security measures adopted.
What are the rating factors for Money Insurance?

Various factors are considered such as sum insured, past 3 year losses, Length between Bank and Insured premise, Per sending limit , security arrangement etc.
Can standalone Money Policy be issued?

Yes, Standalone Money Policy can be issued but it is recommended that Money Policy should be issued along with other property policy such as Fire & Burglary.
Is Money Insurance Policy a tariffed policy in India?

No, Money insurance is a de-tariffed policy.

What are the coverage under Money Insurance?
Loss of Money in TransitCovers money carried by insured or insureds authorized employee in the event of:
- Robbery
- Theft, waylaying, or snatching away
- Any other fortuitous event
Money in transit implies money in direct transit from the insureds premises to the bank and vice versa. Money in the personal custody or with authorized employee can also be included.
Loss of Money in SafeCovers loss of money in safe due to:
- Burglary
- Housebreaking
- Robbery or hold-up
Money in safe implies money secured in a locked safe or locked strong room on your premises outside business hours and includes money kept in till.
How to decide the Single Carrying limit under Money in Transit?

Single carrying limit will depend upon maximum expected amount of transit at one go.
What are the major exclusion in Money Policy?

"Shortage of money due to error or omission, loss of money entrusted to any person other than the insured or an authorized employee of the insured (for full details refer to the policy), Consequential loss, Loss due to flood, cyclone and other convulsions of Nature, Loss due to war and warlike operations.
What are the benefits of Money insurance?
- Complete cover for risks involving money and monetary transactions
- Reasonable premium
- Additional cover against loss of money in safe due to housebreaking or burglary after office hours
- Payment of premium on estimated carrying of money
- Adjustment at the year against actual carrying of money

How Single Carrying limit impacts the claim under Money Insurance?

If the amount of money carried in any single transit is higher than single carrying limit then it will directly impact the claim and under insurance would be applied into it.
What are the documents required to settle a Money in Safe Insurance?
Following documents are required in case of claim under Money in Safe Insurance :
- Cash Book ledger of at least last 1 week
- FIR
- Detailed statement narrating the incident
- Claim Bill
- Purchase and replacement invoice details in case locker is broken
What are the documents required to settle a Money in Transit Insurance?
Following documents are required in case of claim under Money in Transit Insurance:
- Book entry of amount of Cash Transferred
- FIR
- Detailed statement narrating the incident
- Claim Bill
Can foreign currency claims be settled in Money Insurance?

Foreign currency can be specifically declared and covered under the Policy. Claims if any admissible will be settled with reference to the Reserve Bank of India exchange rate prevailing as on the date of the event.

How sum Insured is decided under Money Insurance?

Sum insured should represent estimated total annual amount of the money in transit.Separate sum insured also needs to be given for the maximum amount of money held in safe and in counter. Single carrying limit, which is the company's limit of liability for any one loss, is also required to be specified in the policy.
What are the exclusions under Money Insurance?
- Shortage due to error or omission
- Unexplained losses and mysterious disappearance
- War and nuclear group of perils
- Money entrusted to any person other than the authorized employee
- Money entrusted to a carrier
- Legal liability, consequential loss, and theft from an unsecured vehicle
- Loss due to any act in which the insured is involved as principal or accessory
What are the major extension/Add-ons under Money Insurance?

Riot, Strike, Terrorism.
Who is eligible to take a Money Insurance Policy?

Any Employer who has employees handling goods or money, with a system to record all transactions, can avail this policy.

Claim Case Study - 1

Situation

In a money policy of a manufacturing plant which is a labour intensive unit where the wages are paid in cash. The client had withdrawn the cash from his bank and was going back to his plant for distribution of wages . To and From was not mentioned in the money policy and the insurer has denied the claim.

Challenge

Since To and from was not mentioned in the policy insurer denied the claim as the loss occurred while bringing the case from bank to the Insured premises.

Solution

Insurer was convinced that the Money policy covers loss to and from and the premium has been paid accordingly. The dispute is only because it is not mentioned in the policy copy which has been left out erroneously.

Advisory/Conclusion

Requested the client to check all the location where cash is kept and mention them properly in the policy. Non mentioning of the location in the policy makes the claim inadmissible

Claim Case Study - 2

Situation

Theft from Unattended Vehicle

Challenge

As the policy does not cover theft from unattended vehicle.

Solution

The vehicle carrying the cash should be safeguarded and attended properly.

Advisory/Conclusion

Safeguards for higher value of articles.

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