IRDAI License Number: IRDAI/INT/ISNP/2022/250
Cases of employee fraud is not an uncommon occurrence across the world. No business can say they are immune to falling victim to such acts. Many a time the employees and the higher position staff know about confidential information and in-depth knowledge of the company’s confidential system. This also gives them access to commit fraud as they know their way around the security measures and set up devious fraud systems. We have heard of many cases recently where fraud is committed by insiders sometimes on their own or in some cases teaming up with outsiders. Although fortunately, the number of fraud cases are few whenever it happens it leads to heavy losses for the business and its reputation. No organization that employs people are protected against the risk of breach of fidelity and hence fidelity coverage is slowly gaining popularity in Indian Insurance Market.
Let’s know more about fidelity cover and how it is important for your business and what coverage is offered under such an insurance policy.
Fidelity Insurance compensates the insured business for a loss which has occurred due to the dishonest act of their employee. It protects from costs incurred as a result of embezzlement, forgery, defalcation and other fraudulent acts by employees.
Fidelity insurance provides coverage against loss of money, assets, or other securities resulting directly from own employee theft, forgery, computer fraud, loss of employee benefit plan assets and more. The loss can be of goods or money, the cover is valid only during the active duration of the insurance policy. The cover can be taken for a single employee or a group of employees.
It is very important for the policyholder to go through the terms of the policy and understand the exclusions of coverage to avoid any unpleasant surprises during the claim process. Some of the major exclusions of fidelity insurance are mentioned below -
