What is Fidelity Insurance • Fidelity Insurance insurance protects organizations from loss of money, securities, or inventory resulting from crime. • Common Fidelity claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts. • These schemes involve every possible angle, taking advantage of any potential weakness in your company’s financial controls. • It includes fictitious employees, dummy accounts payable, non-existent suppliers to outright theft of money, securities and property
Transcript
What is Fidelity Insurance
• Fidelity Insurance insurance protects organizations from loss of money, securities, or inventory resulting from crime.
• Common Fidelity claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts.
• These schemes involve every possible angle, taking advantage of any potential weakness in your company’s financial controls.
• It includes fictitious employees, dummy accounts payable, non-existent suppliers to outright theft of money, securities and property
Types of Fidelity Policies.
• Individual policy• Collective policy• Floating policy or floater• Position Policy
Why do we need Fidelity Insurance?
Fraud and embezzlement in the workplace is on the rise, occurring in even the best work environments.
According to a leading international accounting firm: 80% of workplace crime is carried out by employees One in four employees has either committed or witnessed
workplace fraud and abuse One in four employees committing fraud against their
employer has been with the company for more than 10 years Only one in three of those who have witnessed a workplace
crime bother to report it
Fidelity Coverage Highlights
Comprehensive coverage for: • Employee theft • Money and securities while on premises or in transit • Forgery • Funds transfer fraud • Computer fraud • Money order and counterfeit currency fraud • Credit card fraud • Optional client coverage • Coverage for investigative costs for covered losses
What does this policy not cover?
The policy does not cover any loss if:• Arising out of suppression of fact affecting the risk at the time
of affecting the policy.• There is any change in the circumstances or conditions of the
said employment without the consent of the company.• More than one claim in respect of any one employee.• Arising outside India.• Due to non-observance or relaxations of system of checks and
precautions.• By an act committed subsequent to an earlier act of
dishonesty/fraud and which had come to the notice of the insured / insured's representative / supervisor
Detail required to file a claim for the Fidelity Guarantee scheme
• Details about the employee responsible for the loss i.e. name, address, resignation, nature of duties, etc
• Details about the loss.• Action taken against the defaulting employee i.e. police case
and copy of the FIR.• Details about the amount of loss i.e. the extent of loss as
discovered from the books of accounts, direct recoveries if any
• Details of any immovable property owned by the employee, if known.
• Details about any other insurance policies held by the employee, if known.
Aspects and possibilities that are scrutinised
After the insurance company receives the claim form with all the details, the investigation of the matter will commence to ascertain that
• The loss has been reported by the insured immediately after discovery
• The employer has provided all the relevant documents and details within a period provided by the insurer after giving notice of the loss
• The loss has been discovered within a period of 12 months from the date of expiry of the policy or date of dismissal, retirement or death of the employee or within a retroactive period of two years
Aspects and possibilities that are scrutinised contd….
• The details furnished in the claim form tally completely with the details already specified in the proposal form as and when relevant
• The system of checks and method of supervision as stated in the proposal have been maintained by the insured during the time of the loss
• There is no change of risk involved that might render the policy void
• The insured has taken proper steps to pursue recovery against the defaulting employee and also sought criminal prosecution
• The insured or any members of the insured’s family are not involved in the fraudulent act
Major players offering Fedility Gurantee Insurance in India
PROPERTY AND BUILDING
Property Insurance
• Property insurance provides protection against most risks to property , such as fire, theft and some weather damage.
• This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance.
Property Insurance
• Property is insured in two main ways – Open perils Named perils
Property Insurance Open perils:Open perils cover all the causes of loss not
specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and war.
Named perils:Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion and theft.
Types of Coverage
• Replacement cost coverage: pays the cost of replacing your property regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value
• Actual cash value coverage: provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased
How to select a commercial property insurance policy
There are numerous Indian Insurance Companies that offer commercial property insurance from MNCs to small organizations. While choosing to buy a policy consider:
• Whether the policy is worth the property,• The clauses in the policy offer a safe deal,• The history of the insurance company,• The formalities required to file a claim,• The time taken to release the payment,• The schedule for paying premium and the affordability of
premium.
What is not covered
• Willful destruction of property.• Loss, damage and destruction caused by war, wear and tear
etc.• Losses if your home has been unoccupied for more than 30
days,without prior notice to the company.• Cash, bullion, painting, works of art and antiques.
Buildings insurance
This covers:• The main structure of your home and domestic outbuildings. • Permanent fixtures to your home, for example, fitted kitchen,
bathroom, floors, etc.• i.e. whatever you can’t take with you when you move.
What is usually covered by buildings insurance?
Damage caused by:• Fire, explosion, lightning or earthquake;• Flooding, storm and subsidence, with some restrictions;• Riot, vandalism, or other violent acts;• Burglary or attempted burglary that results in property
damage;• Water or oil escaping from a fixed appliance such as a water
tank;• Vehicles, animals, etc, damaging buildings, walls, fences, etc;• Falling trees and branches.
What is usually not included in buildings insurance?
Damage caused by:• Storms affecting gates and fences;• Flooding or subsidence if your home is in an area where this is
likely to happen;• Acts of terrorism;• Wear and tear in the structure or the inside of the property;• Any claim that is less than the excess.
Documentation
The documents required to be submitted in order to fasten claim procedure-
• Duly completed and signed claim form• Copy of the FIR• A Final Police Report• Copies of all invoices, price lists• Letter of indemnity
