Cash Carrying Limit

In considering the cash carrying limits in a money policy, the following need to be appreciated:

1. The definition of money in the policy. (All components as used in the definition, need to be considered). Some Insurers may offer cover for foreign exchange too.)
2. The money in transit cover is available only for money carried by Insured or an authorized employee. (So an  appropriate person to be chosen accordingly)
3. The policy cover is for - a loss caused by Robbery/Theft/ Any fortuitous cause during transit
4. The transit covered/ maximum limit of carriage also needs to be kept in mind & specified

Money in this policy is defined to include the following:

• Cash, coin, currency notes,
• Treasury or promissory notes,
• Cheques (signed and blank cheques whether crossed or not), bank drafts,
• Bonds, bills of exchange,
• Postal orders, money orders
• Current postage stamps (not philatelic collection)held in connection with business
• Luncheon Voucher
• Foreign currency in general is not covered but maybe included in the policy at insurers' discretion

Policy covers loss of Money in Transit whilst being carried by Insured/his authorized Employee. An Authorized Employee means an Employee of the Insured - specifically entrusted with Money.

Bank shall mean and include Bank of every description, Post Office and Government Treasury.

The transit covered in the policy is for 

• Money for payment of wages, salaries & other earnings or for Petty cash, in direct transit from the Bank, to the Insured's premises
• From/ to Insured's Premises/Bank/P.O./ Any other specified Premises
• Money collected by and in the personal custody of the Insured or the authorized employees of the Insured, whilst in transit to the Premises or Bank, within a period not exceeding 48 hours, from the time of collection
  

What is the appropriate limit to be chosen? 

Keeping all the above definitions/specification in mind, the following action points are to be followed:

• The policy requires cover to be taken for the expected amount of money to be carried during the year from/ to various points. Data of previous years can be a  guide for this decision.
• Please also note that an approximate figure is to be indicated initially. Final premium is charged at the end of policy period on basis of -actual carrying during the year, subject to certain restrictions. (This norm of charging provisional premium initially is as available in the insurance law (section 64 VB of Insurance Act & Rule 59B of Insurance Rules).