This insurance is designed to protect an employer with an indemnity in respect of loss of his money or property arising through fraud or dishonesty of employees.

• Individual Policy covering a named employee and for a specified amount.
• Collective Policy covering a group of employees, each of whom will have specified amount.
• Floater Policy covering a specified amount in respect of any one individual and a total in respect of all the employees who are named in the Policy.
• Blanket Policy covering all employees categorized by groups.

• The employee must make improper financial gain for themselves or for other person or organization.
• Occur during the continuance of this Policy and during the uninterrupted service with the Insured.
• Discovered during the continuance of this policy or within 6 months of the termination of this Policy or the employee ceasing to be covered whichever shall happen first.

The cover is usually subject to a limit any one claim and in the case of policies covering more than on employees, aggregate limit of guarantee for all the employees taken together.

• Consequential loss such as loss of interest, loss of profit or any kind of consequential loss.
• Unexplained shortages such as any loss solely based on inventory computation or a profit or loss computation and any unexplained shortages.
• Losses outside the specified territorial limits.

All fidelity guarantee policies cover essentially moral hazards of employees and hence it is important for the underwriters to fully understand the system of internal control of the Insured in order to assess the risk exposures. A questionnaire covering points relating to the internal control system is usually required to be completed and this forms part of the proposal for insurance.

The Insured must inform the Underwriter of any change in the business and procedures otherwise their rights under the policy will be prejudiced.

It is also important that the Insured comply with the actions in the event of any loss being discovered or where there is any reasonable cause of suspicion.

Note: This information is for briefing purpose only. Full detail and conditions of policy cover are contained in VIA's official policy wording.