Money Insurance
This Insurance is intended for industrial, manufacturing and business concerns that periodically draw from banks or other sources large sums of money for payment of salaries and for other day-to-day transactions. This cover provides an indemnity in respect of loss of money carried by authorised messengers while in transit from one place to another, specified in the policy. The Insurance is intended to cover the money in actual transit i.e. from the time the money is taken out at one place until it is delivered at the other place. When money drawn for any reason is not paid on the day it is drawn, the risks can be covered against Burglary and/or House Breaking Risks, robbery or hold up provided it is retained in a locked standard burglar resistant safe or strong room in the insured’s premises.
The premium is charged on the basis of estimated total carryings during the period of Insurance. If at the time of loss, it is found that the actual money in transit has exceeded the sum insured under the policy, no liability can attach. However, this does not apply to cash kept in the premises during business hours.
The Insurance under the policy can also be extended to cover money collected by employees from the time of collection during rounds, until it is delivered at the insured’s premises or at the premises of any of their bankers on the day of collection. It is also possible to extend the Insurance against burglary and/or house breaking risks, while the money is retained overnight by such employees in any locked steel cupboard at their residence.