Fidelity Guarantee

1. Introduction

Fidelity Guarantee Insurance is designed to indemnify the Insured against loss as a result of dishonesty of persons holding positions of trust.

In a business organization, certain positions demand a very high level of honesty and trust. The daily duties of the employees in these positions would bring them into contact with cash or goods that can be converted into cash.

A business organization would like to have some form of protection against any loss should their employees abuse their positions of trust. Fidelity Guarantee Insurance is therefore most ideal form of insurance to protect the company's interest.

The company only accepts Fidelity Guarantee insurance provided the Insured's other insurance are placed with us, otherwise this class should be avoided as its claims experience is generally not favourable if there is insufficient check and control over the staff's handling of cash.

2. Scope of Cover

This Insurance covers direct pecuniary loss as the Insured shall sustain any act of fraud or dishonesty committed by any insured employee. The loss must be sustained 

i) in connection with the insured employee's employment and duties 

ii) during the period of guarantee and renewal thereof 

iii) during the uninterrupted employment of a such employee 

iv) and discovered during the period of guarantee or within six months thereafter.

3. Extensions

Auditors' and Accountants' Fees up to the sum insured of RM10,000 prepare a satisfactory proof of pecuniary loss.

4. Fidelity Guarantee Insurance - Basis of Rating

5. Referred Risks (Acceptance of such risk is to be referred to Business Development or Branch Head)

5.1 Business relating to betting

5.2 Business with 24-hour operation

5.3 Amusement centers

5.4 Entertainment outlets such as pubs, discotheques, karaoke

5.5 Direct sales companies

5.6 Petrol Kiosks

6. Special Acceptance Risks (Acceptance of such risk is to be referred to Portfolio Underwriters/Head of Underwriting and Technical Support)

6.1 Commodity traders

6.2 Cyber Cafes

6.3 Cigarette traders

6.4 Debts collectors

6.5 Money Changers

6.6 Proposers with bad claims record in the past 3 

       years

6.7 Security Firms

7. Declined Risks (Any accommodation of such risk is to be referred to Head of Underwriting and Technical Support/Risk Review Committee)

7.1 Banks/Financial Institutions

7.2 Stock broking firms

7.3 Jewellery shops

7.4 Casinos