Most businesses handle money at some stage in their operations. Almost all businesses handle money in some form – cash, cheques, bankers’ drafts, etc. A business may be robbed of cash either during normal business hours or after normal business hours. So, this insurance is essential for large as well as small businesses.
This policy covers loss of money carried by authorized personnel whilst in transit from one place to another in Safe, Vault and Counter against the risks like Robbery, Looting, Snatching etc. It covers the loss of money from the time it is taken out until delivered to other places.
This insurance can be extended for Terrorism Group Risks [RSMDST- Riot, Strike, Malicious Damage, Sabotage and Terrorism] if paid an extra premium.
For eg. If the authorized person of an insured organization goes to a bank to deposit the money. Whilst in transit, if the person is robbed, then such losses of money are covered. So, it covers the loss of money between the insured premises and the bank or other places.
- It covers Theft, Burglary, Hold up, and Robbery whilst in transit from one place to another by authorized personnel.
- It covers losses of Cash kept inside a Safe, Vault or Strong room inside insured premises due to Theft, Burglary, Hold up, Robbery or Housebreaking. (Here, cash means Bank note, Treasury Note, Bullion, ATM cash, coins, Bank Draft, Cheques, Promissory Note, Bills of exchange, etc.)
- It covers losses of Cash during working hours inside insured premises due to Theft, Burglary, Hold up, Robbery or Housebreaking.
- It covers losses of money due to dishonesty and betrayal by authorized personnel whilst in transit. However, such loss should be known within 72 hours.
- It also covers personal loss of money of insured staff inside insured premises due to Theft, Burglary, Robbery or Housebreaking. Such loss shall be payable to a maximum of Rs. 10,000/- per policy period.
Criteria for Cash In Transit
i) Upto NPR 10 million : Minimum of one office person shall accompany each cash in transit
ii) Above NPR 10 million : One Guard and one office person shall accompany each cash in transit
iii) Cash in Transit by air : One office person shall accompany each cash in transit
- All the insured premises shall be protected with proper security measures like a 24-hour guard, CCTV Cameras etc.
- All the doors and windows shall be properly closed after office/working hours.
- All means of entry to or exit from the premises or any safe or strong room on the premises should be properly secured.
- The keys of the safe or strong room shall not be left on the premises out of business hours unless the premises are occupied by the Insured or any authorized employee 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 strong room.
- The key or numerical code required to gain access to the safe should be stored securely and kept away from public access at all times.
- The Insured shall keep a daily record of the amount of cash contained in the safe or strong room and such record shall be deposited in a secure place other than the said safe or strong room, and produced as documentary evidence in support of a claim under this Policy.
- Fire, Lightning, Earthquakes or any natural perils.
- Flood, Landslide, Storm, and Hurricane.
- Loss of money without any violent, forcible and visible means.
- Terrorism Risk (can be included by paying the additional premium).
- War, Invasion, Act of foreign enemy (whether war is declared or not), Civil War, Rebellion, Revolution, Insurrection, etc.
- Cash not kept in a safe, vault or strong room after office hours.
- Accounting error.
- Money carried by unauthorized personnel whilst in transit.
- Dishonesty and fraud by insured itself other than staff or authorized personnel.
- Losses occurring by the use of keys to safe unless such keys were obtained by threat or force.
- Loss of money in transit by post or courier services.
- Loss arising from unattended vehicles.
- Use of fake notes.
- The loss caused by contamination of radioactive material or radioactive waste.
- Loss due to transfer of money through internet or online.
- Consequential loss.
- Breach of contract.
Deductible Excess is the first amount of loss that the policyholder is personally required to bear.
For RSMDST Claims : 10% of Claim Amount or Rs. 50,000/-, whichever is higher
For Normal Claims : As per the company's rule
Documents required to issue the policy
- Duly filled proposal form
- PAN of company
- KYC Form
- Other documents if required