Money is the sole goal for any business, hence for all enterprises large, medium or small needs to have protection against their saving, which is mostly in the form of cash. This cash while being handled can be taken away from us in unexpected circumstances and may cause loss or damage of the same. Hence insuring our money is very important while doing business.
Money Insurance Policy
Money insurance policy covers money while in transit by the insured or any of the insured’s authorized employee from the insured’s premises, bank or post office to other specified places under circumstances like robbery, theft etc. The policy also covers money retained in the safe or strong room in the insured’s premises against theft, housebreaking or robbery. Money includes all forms like cash, cheques, bank drafts, currency notes, postal orders, money orders, revenue stamp, court fee stamp, postage stamps and treasury notes and the like belonging to the insured.
The money insurance policy does not cover
- Loss on account of shortage due to clerical or accounting error or omission
- War, civil war, riot and civil commotion
- Confiscation by customs or other related government bodies
- Cash entrusted to unauthorized persons
- Loss of money from unattended vehicle
- Loss or damage due to flood, cyclone, earthquake or other natural calamities
- Loss from safe by use of original or duplicate key unless it was obtained by threat, force or violence
- Unexplained loss and mysterious disappearance
- Loss not discovered within 48 hours
- Consequential loss
- Terrorism
- Occurring elsewhere other than the prescribed location in the policy
- Robbery, theft or fraud conducted by an employee of the insured or any other agent of the insured
Premium of money insurance policy
The premium amount of money insurance policy depends on the distance involved; single carrying limit and security measures adopted. The premium can be higher or lower depending on these factors.
The sum insured for money insurance policy must be the total annual amount of money used in transit as well as the company’s limit for liability for any one loss as specified in the policy (Single carrying limit). Variable sum insured limits are also available to cover for different needs and situations.
Money insurance policy is vital for any business where cash is involved whether in large or small quantity. Due to increased need for money, we can never be sure when our hard earned money can be under the attack of robbers or burglars. So while dealing with your business savings or investment it is always a good idea to insure your money while transporting from one place to another, as money once lost will be very hard to reproduce.
