Kathmandu. Loyalty guarantee insurance is one of the insurance policies issued for the protection of cash transactions under various insurance policies issued by the non-life insurance business. This insurance is especially useful for businesses with regular cash transactions and large-scale transactions.
According to this policy, if the employee handling the cash transactions of a company misappropriates the cash, then the insurance company will provide compensation equal to the amount that has been embezzled. For example, the cashier of a bank calculates rs 10 to 5 million in cash every day. In case the employee goes missing by putting the money to be put in the vault during the transaction, the insurance company will provide cash compensation to the bank.
Nepal Insurance Authority (NEA) has included provisions related to integrity insurance in the Monetary Damage Insurance Directive 2081 BS. This insurance has been specially implemented to cover the risks to the security of cash transactions of banks and financial institutions and cash transactions.
As mentioned in the directive, the sum assured of the insurance policy, the maximum amount at risk of harm to the employer company by the concerned employee by acting dishonestly.
At the time of purchasing this policy, the insured should provide to the insurer the name and post details of his employee or worker to be protected while maintaining the sum assured.
Once the policy is issued in this insurance, the insured cannot pressurize the insurer to issue the sum assured during the period of the policy, affecting the sum assured, insurance fee and rate.
