BANKERS' INDEMNITY INSURANCE POLICY
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WHEREAS THE INSURED named on the Schedule hereto has made to
The NEW INDIA ASSURANCE CO.LIMITED (HEREINAFTER CALLED THE
`Company') a written proposal and declaration (specified in the
Schedule) which shall be the basis of this contract and be
deemed to be incorporated herein for the insurance hereinafter
contained, and has paid the premium stated
therein, subject to the terms, conditions, provison, exceptions
contained herein or endorsed or otherwise expressed herein.
THE COMPANY HEREBY AGREES TO INDEMNIFY THE INSURED TO THE EXTENT
SPECIFIED HEREAFTER if at any time during the period of
insurance stated in the schedule, or any specified period in
respect of which the insured shall have paid and the company
shall have accepted the premium for the renewal thereof, the
insured shall discover any direct loss of money and/or securities
sustained :
A. ON PREMISES
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By reason of any money and/or securities for which the insured
are responsible or interested in or the custody of which they
have undertaken and which now are, or are by them supposed or
believed to be or at any time during the period of insurance may
be in or upon their own premises (including Mobile Offices) or
upon the premises of their Bankers in any recognised place of
safe deposit or lodged or deposited in the ordinary course of
business for exchange, conversion with the issuers thereof, or
with any agents of such issuers or with any person employed to
procure or manage the exchange, conversion registration
thereof,being (while so in or on such premises or so placed,
lodged or deposited as aforesaid) lost, destroyed or otherwise
made away by Fire,Riot and Strike, malicious damage & Terrorist
riks, Burglary or Housebreaking, Theft, Robbery or hold-up,
whether within or without and whether by the employees of the
Insured or any other person or persons whomsoever:
B. IN TRANSIT:
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By reason of any Money and/or Securities being lost, stolen,
mislaid misappropriated or made away with, whether due to the
negligence or fraud of the employees of the insured or otherwise,
whilst in transit in the hands of such employees, such risk
of transit to commence from the moment the same is received by the
employee on behalf of the insured and to continue until delivery
thereof at destination :
C. FORGERY OR ALTERATION
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By reason of the payment made in respect of bogus or fictitious
or forged or raised cheques and/or drafts and/or genuine cheques
and/or Travellers' cheques and/or Gift cheques and/or drafts
and / or Fixed Deposit Receipts (exccluding Bills of Discount and
other credit facilities) issued by the Insured bearing forged
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endorsements or the establishment of any credit to any customers
on the faith of such documents whether received over the
Counter or through the Clearing House or by Mail:
D. DISHONESTY:
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By reason of the dishonest or criminal act of the employee(s) of
the insured with respect to the loss of Money and / or
Securities wherever committed and whether committed singly or in
connivance with others.
E. HYPOTHECATED GOODS
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By reason of fraud and/or dishonesty by the employee(s) of the
insured in respect of any goods land/or commodities pledged or
hypothecated to the insured and under the insured's control :
F. REGISTERED POSTAL SENDINGS
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By reason of loss by robbery theft on by other causes not herein
excepted whilst in direct transit or intended to be despatched by
Registered Insured Post from the office of the insured to
the consignee provided that each post parcel shall be insured with
the Post Office ;
Provided always that the Company's liability for any one
consignment and/or loss is limited to 15% (fifteen percent) of the
basic Sum Insured or Rs. 2,50,000/- whicheverr is less :
G. APPRAISERS
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By reason of infidelity on criminal acts on the part of Appraisers
provided that such Appraisers are on the approved list
of Appraisers maintained by the insured and further provided that
the insured shall exercise reasonable precaution and safeguards
in the selecation and appointmeent of such Appraisers.
Provided always that the Company's liability for any one loss
or all loses during the period of insurance due to infidelity
or criminal acts of each of such Appraisers will be limited to 5%
(five percent) of the basic Sum Insured under this Policy or Rs.
50,000/- whichever is less.
H. JANATA AGENTS/CHHOTI BACHAT YOJNA AGENTS PYGMIE COLLECTORS
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i)By reason of loss of money by theft ,robbery or hold-up whilst
in the custody of Janata agents/Choti bachat yojana agents/pygmie
collectors or persons performing duties of like nature,
ii)By reason of infidelity or criminal act on the part of the
Janata agents/Chhoti Bachat Yojna agentspygmie collectors or
persons performing duties of a like nature,
Provided that
such agents are regular part/time commercial agent of the bank and
are appointed after full scrutiny about their credential
guaranteed by two reliable independent persons, subject to the
condition that the total liability during the period of insurance
in respect of each such agent will be limited to 5% (five per
cent.) of the basic Sum Insured under this policy or Rs. 20,000
whichever is lower.
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THE INDEMNITY GRANTED UNDER THIS POLICY IN RESPECT OF SUCH DIRECT
LOSSES WILL NOT EXCEED:
(a) The Sum Insured hereby :
i) In respect of any loss or losses caused by acts and /or
omissions of any Employees(S)ofthe insured,either singly or
jointly with other Employees, or acts and/ or omissions in which
such a person is concern or implicated either as a single act
and/or omission or a series of acts and/or omissions, during any
one period of insurance:
ii) In respect of any one casualty or event.
(b) Subject to(a) above twice the sum insured hereby in respect
of all losses in any one period of insurance.
DEFINITIONS :
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(a) MONEY : The term `Money' as used in this policy shall be
deemed to mean Bank Notes (signed and unsigned), Bullion,
Coins,Currency, Jewellery Precious Stones and Ornaments,
Pleadged with Banks, Postage, Revenue Stamps (uncancelled) &
Stamp papers.
(b) SECURITIES : The term `Securities'as used in this policy
shall be deemed to mean Acceptances,Air/Consignment Notes, Bank
Money Orders, Bills of Exchange, Bills of lading, Bonds,
Certificates of deposits, Certificates of Shares, Stock,
Cheques,Coupons,Debenture, Demand Drafts, Express Postal Orders,
Fixed Deposit Receipts issued by the insured, lorry Receipts,
Lottery Ticket, Postal Receipts, Promissory Notes,
Railway Receipts, Time Drafts, Warehouse Receipts Mail Transfers,
Travellers` Cheques and drafts and all other instruments of a
negotiable character in respect of which, if negotiated any
any holder, the Assured would have no recourse against the
innocent holder thereof.
(c) EMPLOYEES : The term 'Employee' as used in this policy shall
be deemed to mean all existing employees (Officers Clerks or Sub-
Staff) whether permanent or temporary , whole-time or part-time
on contract or otherwise including apprentices, on the salary
roll of the bank at all of its offices but shall NOT include any
Director or Partner other than salaried.
PROVISOS
(a) EXCESS : Insured shall bear the first 25% of each loss under
items 'A' to 'E' or 2% of the basic Sum Insured whichever is
higher, but not exceeding the amount specified in the Schedule.
Each loss in respect of each dishonest or criminal act shall be
treated as a separate loss.
This excess will however not apply to loss or damage arising out
of Fire, Riot & Strike. In respect of item F, G, H of the policy
(i.e.Registered Postal sendings, Appraisers & Janata Agent etc.)
the excess applicable will be 25% of the claim amount.
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(b) REINSTATEMENT : "At all times during the period of insurance
of this Policy, the insurance cover will be maintained to the
full extent of the respective sums insured, in consideration of
which, upon the settlement of any loss under this policy, prorata
premium at the basic rate for the unexpired period for the
amount of such loss paid (not exceeding the respective sum
insured) shall be payable by the insured to the Company. The
additional premium referred to above shall be deducted from the
net claim amount payable under the policy. This continuous cover
to the full extent shall be available, notwithstanding any
previous loss for which the Company may have paid hereunder and
irrespective of the fact whether the additional premium as
mentioned above has been actually paid or not following discovery
of a loss. The intention of this clause is to ensure continuity
of the cover to the insured subject only to the right of the
Company for deduction from the claim amount when settled, of prorata
premium to be calculated from the date of discovery of each
irndependent loss till expiry of the policy under which the loss
falls.. Provided that the liability of the Company will be
limited to twice the respective Sum Insured during the entire
period of the policy in respect of any loss or losses caused by
acts and/or omission of any persons."
(c) RETRO-ACTIVE PERIOD OF COVER : The Company shall not be
liable
(i) for losses not discovered within the period of this
insurance.
(ii) in the event of non-renewal or cancellation of this
policy, for losses not discovered within six calender
months following the date of expiry or the date
of cancellation as the case may be (provided only
that if there be any other insurance in force during
the said six calender months whether effected by the
insured or otherwise this Policy shall not cover or
contribute to any loss covered by such other
insurance). The Reinstatement provision will not
apply to such losses discovered within six calendar
months from the date of non-renewal or cancellation.
(iii) For any losses discovered or intimated after the date of
cancellation advice by the insured ,in case the
policy has been cancelled at the request of the insured.
(iv) for losses not sustained within the retroactive period
not exceeding two years prior to the date of discovery
of any such loss or losses.
Provided that in such retroactive period the Insurance was
continuously in force with the same Company but in no event the
Company shall be liable to pay any claim in respect of a loss or
damage sustained prior to the inception of the original Policy.
Further, provided that losses which become payable under this
clause shall be subject to the terms, conditions exceptions of
the Policy currently in force on the date of discovery.
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(d) VALUATION OF SECURITIES : in estimating the amount of any
loss, the value, of securities shall be taken at the average
market price or value in Rupees on the date of discovery of such
loss (omitting Sundays and Holidays) and if there be no market
price/or value for same or any of them on such day, then the
value thereof shall be the value as agreed between the respective
parties or in the event of difference as ascertained by
arbitration.
(e) VALUATION OF JEWELLERY/ORNAMENTS : Value for the purpose of
settlement of any claim in respect of Jewellery/Ornaments under
this Policy shall be as per the 100% value as recorded in the
register of the bank at the time of pledging of jewellery or
ornaments or value recorded in the bank's register after
latest valuation.
EXCEPTIONS
The Company shall not be liable in respect of :
(a) Any loss or damage occasioned by or through or in consequence
whether directly or indirectly of any of the following
occurreces:
(i) Earthqake, volcanic eruption, subterranean fire, or any
other convulsions of nature;
(ii) Flood, inundation, Hurricane, Typhoon, Storm, Tempest,
Tornado, Cyclone or Atmospheric disturbances (not
applicable to mobile Offices);
(iii) War, invasion, act of foreign enemy, hostilities or warlike
operation (whether war be declared or not), civil
war;
(iv) Mutiny, military or popular rising, insurrection,
rebellion, revolution, military or usurped power,
martial law or state of seige or any of the events or
causes which determine the proclamation or maintenance
of martial law or state of seige.
Any loss happening during the existence of abnormal conditions
(whether physical or otherwise) which are occasioned by or
through or in consequence, directly or indirectly of any of the
said occurrences shall be deemed to be loss which is not covered
by this except to the extent that the insured shall prove that
such loss happened independently of the existence of such
abnormal conditions.
(b) losses resulting wholly or partially from any negligent act
or omission of the insured employee. However, this exception
does not apply to Section 'B' i.e. in Transit Cover.
(c) losses resulting wholly or partially from the wrongful act
or default of any directors or partners of the insured other than
salaried.
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(d) losses of any money and/or securities and/or personal
property confided to the care of insured, normal value and
description of which have not been ascertained by the Insured
before loss.
(e) losses resulting directly or indirectly from trading, actual
or fictitious , whether in the name of the insured or otherwise
and whether or not within the knowledge of the insured, and not
withstanding any act or omission on the part of any employee in
connection therewith whether acting within the scope of authority
or not or with any account recording the same.
(f) (i) Loss, destruction of or damage to any property
whatsoever of any loss or expense whatsoever resulting
or arising therefrom or any consequential loss;
(ii) Any legal liability of whatsoever nature;
directly or indirectly caused by or contributed to by or
arising from ionising radiations or contamination by radioactivity
from any source whatsoever or from nuclear weapons
material.
(g) Losses attributable directly or indirectly to a manipulation
or faulty computer or other EDP system and/or any fraudulent use
of the computer or other EDP system by the employee or outsiders,
irrespective of whether the computer or EDP system belongs to the
insured or it is shared by the insured with others on service
contract basis or otherwise.
(h) Losses due to any acts or omissions committed by the
concerned employee(s) after the discovery of a loss in which the
said employee(s) was involved.
(i) Losses arising directly or indirectly out of any use of
automated teller machines
CONDITIONS
1. NOTICE : Every notice or communication to be given or made
under this Policy shall be delivered in writing to the Office of
the Company with which this insurance is effected.
2. MISDESCRIPTION : This Policy shall be void and all premium
paid hereon shall be forefeited by the Company in the event of
mis-representation, misdescription or non-disclosure of any
material particular.
3. REASONABLE CARE : The Insured shall take all reasonable
steps to safeguard the property insured against any accident loss
or damage and to secure all doors, windows and other openings and
all safes, strong room etc.
4. CANCELLATION CLAUSE: The Company can cancel the policy by
sending fifteen days notice by Registered Post to the
Insured at the last known address and in such event
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return to the Insured the premium charged under the
policy calculated on prorata basis for the unexpired
period of the policy. The policy may be cancelled at any
time by the Insured on fifteen days notice (Provided no
claim has been paid or reported till the date of advice
of cancellation) and the Insured shall be entitled return
of premium less premium at the Company's short period
rates for the period the policy has been in force.
5. CONDITIONS PRECEDENT TO LIABILITY :
It is a condition precedent to any liability under this
policy that the Insured shall comply in all material
respect with the following:-
(a) Premises :
The insured shall install alarm system at all vulnerable
branches of the Banks. In respect of branches holding
Rs.50 lacs not exceeding Rs.1 crore, apart from
installing alarm system, the insured Bank should have
additional security arrangements to safeguard the
property insured against.
In respect of branches holding amount exceeding Rs. 1
crore and also in respect of currency chests branches
apart from alarm systems the insured shall make arrangements
for every additional security to safeguard the
property insured against.
(b)For cash-in-transit exceeding Rs5 lacs and upto Rs.10
lacs one escort with fire arm shall be provided.
For cash-in-transit exceeding Rs.10 lacs, two guards with
fire arms shall escort, out of which one shall sit alongwith
the driver and other at the rear irrespective of
whether the insured's own vehicle is used or whether a
private vehicle is engaged.
A manual of instructions covering the procedure for money
and/or securities shall be kept on the premises.
Joint custody shall be established and maintained for the
safeguarding of -
i) money and/or securities while in safes or vaults
ii) all keys to safes and vaults, and
iii) codes, cyphers and test keys.
Joint custody means the handling of the above in the
presence of or under the observation of at least one other
person, such person being equally accountable for the
physical protection and safeguarding of the various
security items including money locks and combinations of
vaults and safes must be so arranged that no one person
can open them alone.
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Dual control shall be established and maintained for the
handling of
i) all types of securities, negotiable and nonnegotiable
instruments and unissued and blank forms
of said items.
ii) the reserve supply of official cheques, drafts and
unissued traveller's cheques.
iii) dormant accounts of depositors.
iv) codes, cyphers and test keys.
(Dual Control means the work of one person in processing
transactions being verified by a second person and both
sharing the accountability.)
There should be joint rotation for employees handling
money and/or securities.
In addition to the normal audit of books of accounts of
the business by the Insured's statutory auditor there
shall be a review of internal controls at least once in
two financial years at all premises.
Premises including Insured's computer centres and
facilities at which the business is carried on and
shall retain the cards relating to such review.
6. CLAIMS PROCEDURE
The Insured shall upon the occurrence of any event
giving rise or likely to give rise to a claim under
this Policy :-
a) lodge forthwith a complaint with the Police and take
all practicable steps to recover the property lost &
to apprehend the guilty person and take appropriate
Departmental action against him.
b) give immediate notice thereof to the Company and
shall as soon as possible thereafter furnish to the
Company at the Insured's own expense detailed
particulars of the amount of the loss or damage
together with such explanations and evidence to
substantiate the claim as the Company may
reasonably require.
7) EXAMINATION OF BOOKS OF ACCOUNTS :
In case of any loss to the Insured, if required by the
Company, the Agent of the Company shall be entitled at
all reasonable time to examine into the circumstances of
such loss and the Insured shall on being required so to
do by the Company produce all books, accounts, receipts
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and documents relating to or containing entries relating
to the loss in his possession and furnish copies of or
extracts from such of the documents as may be required
by the Company so far as they relate to such claim or
will in any way enable the Company to ascertain the
correctness or the liability of the Company under this
Policy.
8) SALVAGE & RECOVERY :
In the case of recovery on account of any loss covered
under this Policy, the amount recovered, after
recovering the actual cost of obtaining or making such
such recovery but excluding the Assured's own layout
and/or establishment costs, shall be applied in the
following order :-
i) To reimburse the Assured in full for the part, if
any of such loss which exceeds the amount of
coverage provided by this Policy (disregarding the
amount of any excess or deductible applicable).
ii) The balance, if any, or the entire net recovery if no
part of such loss exceeds the amount of coverage
provided by this policy. to reduction of that part of
such loss covered by this Policy, or if payment
thereof shall have been made, to the reimbursement of
the Underwriters.
iii) Finally, to that part of such loss sustained by the
Assured by reason of any excess or deductible Clause
as specified in the schedule or to that part of such
loss covered by any Policy(ies) of Insurance of which
this Policy is excess.
9) SUBROGATION :
The insured and any Claimant under this Policy shall at the
expense of the Company do and concur in doing and permit to
done all such acts and things as may be necessary or
reasonably required by the Company for the purpose of
enforcing any rights and remedies or of obtaining relief or
indemnity from other parties to which the Company shall be
or would become entitled or subrogated upon the Company
paying for or making good any loss or damage under this
Policy whether such acts and things shall be or become
necessary or required before or after the Insured's
indemnification by the Company.
10) CONTRIBUTION
It at the time of any loss covered by this Policy there
shall be any other Insurance covering the same property
whether effected by the Insured or not, then the Company
shall not be liable for more than its rateable proportion
thereof.
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11) FRAUD
If any claim under this Policy shall be in any respect
fraudulent or if any fraudulent means or devices are used by
the Insured or any one acting on the Insured's behalf to
obtain any benefit under this Policy, all benefits under
this Policy shall be forfeited.
12) ARBITRATION
If any difference shall arise as to the quantum to be paid
under this Policy, (liability being otherwise admitted) such
difference shall independently of all other questions be
referred to the decision of an arbitrator, to be appointed
in writing by the parties in difference, or if they cannot
agree upon a single arbitrator to the decision of two
disinterested persons as arbitrators of whom one shall be
appointed in writing by each of the parties within two
calendar months after having been required so to do in
writing by the other party in accordance with the provisions
of Arbitration Act, 1940 as amended from time to time and
for the time being in force. In case either party shall
refuse or fail to appoint arbitrator within two calendar
months after receipt of notice in writing requiring an
appointment, the other party shall be at liberty to appoint
a sole arbitrator, and in case of disagreement between the
arbitrators the difference shall be referred to the decision
of an umpire who shall have been appointed by them in
writing before entering on the reference and who shall sit
with the arbitrators and preside attheir meetings.
It is clearly agreed and understood that no difference or
dispute shall be referrable to arbitration as hereinbefore
provided, if the Company has disputed or not accepted
liability under or in respect of this Policy.
It is hereby expressly stipulated and declared that it
shall be a condition precedent to any right of action or
suit upon this Policy that the award by such arbitrator,
arbitrators or umpire of the amount of the loss or damages
shall be first obtained.
It is also hereby further expressly agreed and declared that
if the Company shall disclaim liability to the Insured for
any claim hereunder and such claim shall not within 12
calendar months from the date of such disclaimer have been
made the subject matter of a suit in a court of law, then
the claim shallfor all purposes be deemed to havebeen
abandoned and shall not thereafter be recoverable hereunder.
13) OBSERVATION OF TERMS AND CONDITIONS
The due observance and fulfilment ofthe terms, conditions
and endorsements of this Policy in so far as they relate to
anything to be done or complied with by the Insured shall be
a condition precedent to any liability of the Company to
make any payment under the Policy.
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SCHEDULE
Policy No.............. Premium Rs........
Insured........................................................
Address.........................................................
Period of Insurance From am/pm on
To midnight of
No. of Branches
Cover SUM INSURED PREMIUM
Rs. Rs.
1. Basic Sum Insured (Items A to E)
2. Additional Sum Insured for
item (A)
3. Additional Sum Insured for
item (B)
Total Rs......
Excess amount refer proviso (a)
Not exceeding Rs...........
Date of Proposal and Declaration..............
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In witness whereof signed by and on behalf of the Company
Duly Constituted Attorney(s)
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