Carrier and Courier Liability Insurance Policy- PDF (36 KB)

epnForm No. AC-309The New India Assurance Company LimitedRegd. & Head Office : New India Assurance Building, 87, M. G. Road, Fort, Bombay 400 001.FIDELITY GUARANTEE INSURANCE POLICYWHEREAS the Insured Employer (hereinafter called INSURED) named in the Schedule hereto has madeor caused to be made to The New India Assurance Co. Ltd. (hereinafter called COMPANY) a writtenproposal dated. as stated in the Schedule hereto (arranging the truth of the statements contained therein)which is the basis of this contract <strong>and</strong> is deemed to be incorporated herein <strong>and</strong> has paid the Company thepremium herein stated as consideration for insurance of risks hereinafter specified.Now, this <strong>Policy</strong> witnessed that subject to the terms provisos exceptions conditions <strong>and</strong> definitionscontained herein or endorsed or otherwise expressed hereon the Company agrees to indemnify the insuredagainst a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed on or afterthe date of commencement of this policy <strong>and</strong> during uninterrupted service with the Insured <strong>and</strong> discoveredduring the continuance of this policy or within twelve calendar months of the expiration thereof <strong>and</strong> in thecase of death, dismissal or retirement of the Employee with twelve calendar months of such death,dismissal or retirement whichever of these events shall first happen.PROVIDED ALWAYS THATi. The liability of the Company shall not exceed(a)herein.(b)in respect of any employee the sum insured stated against his name or as declaredin respect of all claims under this policy, the total sum insured.ii.If this policy shall be continued in force for more than one period of indemnity or if any liabilityshall exist on the part of the Company under this <strong>Policy</strong> <strong>and</strong> also under any other <strong>Policy</strong> inrespect of fraud or dishonesty of the employee, the liability of the Company hereunder shall notbe accumulated or increased thereby but the aggregate liability of the Company during anynumber of periods of indemnity <strong>and</strong> for any number of acts of fraud or dishonesty committed bythe employee shall not exceed the sum insured hereunder or the sum insured under any othersuch policy as aforesaid whichever is greater.iii. The Company shall not be liable to pay more than one claim in respect of the action of any oneemployee.EXCEPTIONSThe Company shall not be liable in respect of losses arising elsewhere than in India.DEFINITIONS1. The term “Insured” wherever appeared in this policy means any person, partnership firm or anybody of persons whether incorporated or not with whom employee who is included in the scheduleattached hereto has a contract of service.

2. The term “Employee” wherever appeared in this policy means any person (other than a personwhose employment is of a casual nature <strong>and</strong> who is employed otherwise than for the purposes of theInsured’s trade or business) who has entered into a contract of employment with Insured whether suchcontract of employment is expressed or implied, oral or in writing.CONDITIONSThe <strong>Policy</strong> <strong>and</strong> the Schedule shall be read together <strong>and</strong> any word or expression to which a specificmeaning has been attached in any part of this policy or of the schedule shall bear such meaning whereverit may appear.1. On the discovery of any act or default or circumstances which may give rise to a claim, theInsured shall:(a)(b)forthwith give written notice to the Issuing Office of the Company;immediately take all steps to prevent further loss;(c) supply at the request of <strong>and</strong> free of expense to the Company all such proof, information<strong>and</strong> other evidence (verified by statutory declaration if so required) relating to the claim as theCompany may require.2. If the Insured is or shall hereafter be guaranteed by any other person, society or company or holdother security or insurance against such loss as is hereby guaranteed, the Insured shall only beliable to bear the loss ratable with such person, society or company or securities or insurance.3. Any money of the Employee in the h<strong>and</strong>s of Insured <strong>and</strong> any money which but for theEmployee’s dishonesty would have been due to the Employee from the Insured shall be deductedfrom the amount otherwise payable under this policy. Any money recovered after the settlementof any claim shall be the property of the <strong>Insurance</strong> Company not exceeding, however, the amountpaid by the Company.4. The Insured shall if <strong>and</strong> when required by the Company but at the expense of the Company if aconviction be obtained, use all diligence in prosecuting any of the employee to conviction for anyact which such employee shall have committed <strong>and</strong> in consequence of which a claim will have tobe made under such policy <strong>and</strong> shall at the Company’s expense give all information <strong>and</strong>assistance to enable the Company to sue for <strong>and</strong> obtain reimbursement by any such employee byreason of whose acts or defaults a claim has been made or by the estate of such employee ormoney which the Company shall have become liable to pay in respect thereof.5. Unless the Company be advised <strong>and</strong> its written approval be obtained, the Company shall not beliable hereunder in the event of any change in the nature of the business of the insured or in theduties <strong>and</strong> conditions of service of the employee or if remuneration of the employee be reduced orits basis altered or if the precautions stated by the Insured with regard to accounting be not dulyfollowed or if the Insured shall continue to entrust the employee with money or goods afterhaving knowledge of any material fact bearing on the honesty of the employee.6. If any part of the premium or renewal is based on estimates furnished by the Insured, the Insuredshall keep an accurate record containing all relevant particulars <strong>and</strong> shall allow the Company toinspect such record. The Insured shall within one month after the expiry of each period ofinsurance, furnish such information as the Company may require. The premium or renewalpremium shall thereupon be adjusted <strong>and</strong> the difference paid or allowed to the insured.7. If required by the Company, the agent of the Insured shall in case of any loss to the Insured bepermitted at all reasonable times to examine into the circumstances of such loss <strong>and</strong> the Insuredshall on being required so to do by the Company produces all books of accounts, receipts,documents relating to or containing entries relating to the loss in his possession <strong>and</strong> furnishcopies of or extracts from such of them as may be required by the Company so far as they relate

to such claims or will in any way enable the Company to ascertain the correctness thereof or theliability of the Company under this policy.8. The <strong>Policy</strong> shall be null <strong>and</strong> void in the event of misrepresentation, misdescription ornondisclosure in any material particular or if a claim be fraudulent or any fraudulent means ordevices be used by the Insured or any one acting on his behalf to obtain any benefit under this<strong>Policy</strong>.9. The Company shall be entitled at its own expenses <strong>and</strong> for its own benefit, in the name of theInsured to prosecute all claims <strong>and</strong> exercise all rights of action competent to the Insured againstthe employee in respect of any act insured against in connection with which it may have madepayment under this <strong>Policy</strong> <strong>and</strong> the Insured shall give to the Company all such information <strong>and</strong>assistance as may be reasonably required for maintaining such claims or rights.10. The Company may but without prejudice to the rights of the Insured in respect of claims ofwhich notice shall have to be given to the Company cancel this policy by sending seven daysnotice by Registered Letter to the Insured at his last known address <strong>and</strong> in such event, will returnto the Insured the premium less the pro-rata portion thereof for the period the <strong>Policy</strong> has been inforce or the <strong>Policy</strong> may be canceled at any time by the Insured on seven days notice (provided noclaim has arisen during the then current period of insurance) <strong>and</strong> the Insured shall be entitled toreturning of the premium less premium at the Company’s short period rates for the time the<strong>Policy</strong> has been in force.11. The Company shall not be bound to accept any renewal premium nor to give notice that such isdue. Every renewal premium which shall be paid <strong>and</strong> accepted in respect of this policy shall be sopaid <strong>and</strong> accepted upon the distinct underst<strong>and</strong>ing that no alteration has taken place in the factscontained in the proposal or declaration herein before mentioned <strong>and</strong> that nothing is known tothe Insured that may result to enhance the risk of the Company under the guarantee hereby given.No renewal receipts shall be valid unless it is on the printed from of the Company <strong>and</strong> signed bythe authorised official of the Company.12. For the purpose of identifying employee in all cases of change of residence or occupation orchange of name whether by marriage or otherwise, due notice thereof in writing shall be given bythe Insured to the Company.13. The Company shall not be bound to give notice or be affected by any notice of any trust chargedlien assignment or other dealing with or relating to any contract of insurance but the receipt ofthe Insured or his legal personal representative shall in all cases be an effectual discharge to theCompany.14. Any of the circumstances in relation to these conditions coming to the knowledge of any officialof the Company shall not be the notice to or be held to bind or prejudicially affect the Companynotwithst<strong>and</strong>ing subsequent acceptance of any premium.15. If any dispute or difference shall arise as to the quantum to be paid under the <strong>Policy</strong> (liability beingotherwise admitted) such difference shall independently of all other questions be referred to thedecision of a sole arbitrator to be appointed in writing by the parties to or if they cannot agree upona single arbitrator within 30 days of any party invoking arbitration the same shall be referred to apanel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the partiesto the dispute/difference <strong>and</strong> the third arbitrator to be appointed by such two arbitrators <strong>and</strong>arbitration shall be conducted under <strong>and</strong> in accordance with the provisions of the Arbitration <strong>and</strong>Concilliation Act, 1996.It is clearly agreed <strong>and</strong> understood that no difference or dispute shall be referable to arbitraion ashereinbefore provided if the Company has disputed or not accepted liability under or in respect ofthis <strong>Policy</strong>.

It is hereby expressly stipulated <strong>and</strong> declared that it shall be a condition precedent to any right ofaction or suit upon this <strong>Policy</strong> that award by such arbitrators or umpire of the amount of the loss ordamage shall be first obtained.It is also hereby expressly agreed <strong>and</strong> declared that if the Company shall disclaim liability to theInsured for any claim hereunder, <strong>and</strong> such claim shall not, within 12 calendar months from thedate of such disclaimer have been made the subject matter of a suit in a Court of Law, then theclaim shall for all purposes be deemed to have been ab<strong>and</strong>oned <strong>and</strong> shall not thereafter berecoverable hereunder.16. The due observance <strong>and</strong> fulfillment of the terms, provisions, conditions <strong>and</strong> endorsements of this<strong>Policy</strong> in so far as they relate to anything to be done or complied with by the Insured <strong>and</strong> thetruth of the statements <strong>and</strong> answers in the said proposal shall be conditions precedent to anyliability of the Insurer to make any payment under this guarantee.N.B. IN THE EVENT OF DISHONOUR OF PREMIUM CHEQUE THE POLICYAUTOMATICALLY STANDS CANCELLED AS FROM INCEPTION.