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Insurance of dishonesty

31 August 2022

Companies and business organizations usually take all internal measures in order to provide crisis protection that will insure the owner of the money for all his property and funds.

However, there are many cases of infringement, embezzlement, and theft by employees in those companies, and the owner of the money is exposed to the betrayal of the worker's trust, and we have provided you with insurance policies in case of such cases in your company, through which we work to ensure the owner of the money from protecting him and protecting all his property and funds from These documents are really very practical and very useful for the protection of enterprise and business owners.

The strategy of the documents is developed by directing them mainly to employees who deal with Finance in the company and receive a salary from them, such as employees in the finance, treasury, procurement departments, managers, and others who are directly or indirectly related to financial matters in the company, hence the importance of the role of documents of dishonesty in organizing and controlling this process, and And legal methods that will secure the employer's funds and preserve all property and funds, as well as save employees from making mistakes.

What is a dishonesty insurance policy?

Dishonesty insurance policies cover any loss caused by any act of forgery, embezzlement, theft and / Or a fraudulent act committed by an employee during his duties. The premiums are calculated based on the total compensation limit plus the individual's own premium. One of the forms and forms of committing a person in whose custody goods or money are placed in trust is one of the acts of betrayal of funds, namely the following:

  • Theft: The perpetrator of this type of theft is defined as a person who unlawfully takes, based on bad intent, something that can be stolen fraudulently without the consent of the owner of this money and gives it with the intention of depriving its owner of it permanently.

  • Embezzlement: It's a credit fraud takeover ( That is, for funds deposited with a trusted person on credit and not for ownership). This act must have three elements in it, namely: The first pillar The perpetrator should be an employee or public employee. The second pillar: He should commit embezzlement of money entrusted to him or handed over to him ex officio. The third pillar: The criminal intent behind this act must be.
  •  Fraud: It is taking the money of others unjustly by cheating, fraud, and deception in the heart of the facts or deliberately concealing them using false allegations invoked by the person to infect what he has no right to or what he cannot realize in straight ways.

Who benefits from this insurance?

Through the coverage in the insurance policies of dishonesty, and under the insurance application and declaration, which contain all the details and data, it was agreed that the basis of this contract should be an integral part of it, while they are entitled to benefit from this type of insurance, and that if during the insurance period specified for the above-mentioned elements of dishonesty, the With insurance coverage while performing their work, any act of dishonesty.

By studying the situation well, work is being done to provide the necessary compensation for those direct losses suffered by the owner of the money in accordance with the clauses stipulated in the insurance policies of betrayal of potentials, which cause known losses, and the matter is dealt with very quickly and decisively according to all illegal acts and during the insurance period.

General exceptions

Of course, there are a number of exceptions that vary from country to country, so you should return to the insurance company in your country in order to stop all exceptions from dishonesty insurance. These exceptions can be explained in general in many countries to the following:

  •        The company is not responsible for compensating the insured, in case of concealment of any information about dishonesty or if any misinformation is issued by him in the facts that the company needs to know to estimate this serious risk.

  • in the event that the insurer is not obliged to observe and implement all the necessary precautions and reservations in keeping the secretariats, to make sure that the authenticity of the amounts received or entrusted to the employee is determined.

  •  if there is any change in the conditions and conditions of employment without notifying the company or obtaining its written consent.

  •  In addition to any insured loss committed by the employee after a later date of a similar insured loss and the insured or his legal representative or the one who entrusted the task of monitoring and supervising the actions of this employee was previously aware of it.

  •  As well as the resulting loss, whether committed in whole or in part, or from any act of negligence or dishonesty committed by managers and commissioners who oblige the insured to sign them individually, whether they are employees or not.

  • Finally, the loss resulting from any clerical or accounting errors, omissions, or shortfalls in counting money.

Scope of insurance coverage

In the practical application of this type of insurance, which is the insurance of dishonesty, it becomes clear to us a set of items covered, which we explain as follows :

 The first domain

In this type of insurance policy, the Insurance Company undertakes to compensate the insured (The employer) For any material loss that may be incurred as a result of the insured's Commission(The employee) An accident of waste, embezzlement, theft or fraud, during the performance of his job duties and within its limits, not exceeding the insurance amount indicated in the insurance policy or any renewal thereof.

The second domain :

  The Insurance Company shall only ask about those accidents that are committed during the insurance period indicated in the policy schedule or any subsequent renewal thereof, during which it must discover or during the next three months in order to comply with it, as well as those accidents that are discovered after the end of the insurance for the insured for any reason, such as The insured is not aware of the occurrence of these accidents in a timely manner.

The third domain:  

In case of any change in the basic data, the insurance company must be notified immediately of the request submitted by the insured (The employer) Otherwise, the right to insurance coverage for the remainder of the insurance period as of the date of the change has expired. 

Calculating the value of insurance premiums

Insurance premiums (Premiums) 

They are those premiums that the insured pays to the insurance company in exchange for obtaining an insurance service, which is an expression of the risk with a monetary value.

Insurance contributions  ( Installments ) 

They are calculatedBased on the type of risk covered by the insurance coverage, the value of the insured total insurance ( Compensation ceiling ) The nature of the insurance process, the length of the contract period, in addition to the value of the liabilities ( Accident fees) The insured's own agreed, and the precautionary procedures followed.

Subscriptions ( Installments ) 

They are calculated Based on a percentage per thousand of the value of the total insured insurance ( Cap compensation coverage).

Brokerage insurance provides you & your business with all the insurance policies you might need to protect it  like  Erection All Risk Insurance & Marine cargo insurance