MISCELLANEOUS ACCIDENT INSURANCE 

Personal accident insurance does not cover death or disablement caused by:

• Suicide, Insanity or under the influence of drugs or intoxicating drinks.

• AIDS, Sexually Transmitted Disesases and any illness

• Unlawful Acts

• Flying or navigating an aircraft or crew member

• Armed policy or military duty

• Professional sports and hazardous sports

• Pregnancy, childbirth, miscarriage, abortion

• Pre-existing physical or mental defect

Money Insurance

The term ‘money’ includes cash, bank and currency notes, cheques, postal orders, currency postage and revenue stamps belonging to the insured or for which he is legally responsible. Money insurance is usually issued on “All Risks” basis covering loss of money in the following circumstances:

• In transit between the insured’s premises and the bank by the insured’s authorized employees or representatives.

• On the insured's premises during the business hours;

• In a locked safe or strong room on the insured's premises after business hours;

• In the private residence of any principal or director of insured

• Other specified situations

In addition to loss of money, the money insurance policy provides indemnity for the following losses up to a specified limit:

• Cost of repair or replacement of the safe o strong room as a result of damage consequent upon forcible and violent entry or as a result of damage consequent upon forcible and violent entry or as a result of armed robbery

• Compensation to carriers for injuries sustained during transit of money as a result of robbery or hold-up

• Infidelity of the carrier who may abscond with the money.

The money policy does not pay any claims arising from:

• Frand or dishonesty of employees (other than limited cover of the carries);

• Shortage due to errors or omissions

• Loss occurring outside the territorial limit

• Loss from any safe or strong room following the use of the key (left in the same room);

• Depreciation in value of currency;

• Loss of money from an unattended vehicle (escorted by security guards);

• Confiscation, nationalization requisition or wilful destruction by any government authorities

There are two issues pertaining to what triggers a claim under a fidelity guarantee policy:

1.   The act of misappropriation has to be committed during the period of insurance and during the employee’s uninterrupted service or employment.

2.   The discovery of the loss has to be within a specified period (ie. usually six to twelve months) after the resignation, death, dismissal, retirement of the guilty party/employee or after the termination of the policy, whichever happens first.

The fidelity guarantee policy does not pay any claims for:

• Indirect financial losses e.g. loss of interest, losses due to business interruption

• Negligence, stocktaking or inventory losses

• Bankers’ blanket bonds

Bonds

Bonds are a form of surety insurance. Surety exists when one party guarantees performance by anther party of an undertaking or obligation. A surety bond is a written agreement whereby the surety who issues the bond, obligates itself to a beneficiary or employer to pay a stipulated amount in the event of breach or default of a contractor.

Bonds are written in conjunction with engineering works for which construction insurance and workmen’s compensation insurance are taken by the principal and the main contractor appointed to execute the works. The insurer provides for the payment of the amount guarantee should be contractor fail to fulfil his obligations under the contract.