The New India Assurance Company Limited
Regd. & Head Office : New India Assurance Building, 87, M. G. Road, Fort, Bombay 400 001

FIDELITY GUARANTEE INSURANCE POLICY

WHEREAS the Insured Employer (hereinafter called INSURED) named in the Schedule hereto has made
or caused to be made to The New India Assurance Co. Ltd. (hereinafter called COMPANY) a written
proposal dated. as stated in the Schedule hereto (arranging the truth of the statements contained therein)
which is the basis of this contract and is deemed to be incorporated herein and has paid the Company the
premium herein stated as consideration for insurance of risks hereinafter specified.
Now, this Policy witnessed that subject to the terms provisos exceptions conditions and definitions
contained herein or endorsed or otherwise expressed hereon the Company agrees to indemnify the insured
against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed on or after
the date of commencement of this policy and during uninterrupted service with the Insured and discovered
during the continuance of this policy or within twelve calendar months of the expiration thereof and in the
case 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 THAT
i. The liability of the Company shall not exceed
(a) in respect of any employee the sum insured stated against his name or as declared
herein.
(b) in 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 liability
shall exist on the part of the Company under this Policy and also under any other Policy in
respect of fraud or dishonesty of the employee, the liability of the Company hereunder shall not
be accumulated or increased thereby but the aggregate liability of the Company during any
number of periods of indemnity and for any number of acts of fraud or dishonesty committed by
the employee shall not exceed the sum insured hereunder or the sum insured under any other
such 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 one
employee.
EXCEPTIONS
The Company shall not be liable in respect of losses arising elsewhere than in India.
DEFINITIONS
1. The term “Insured” wherever appeared in this policy means any person, partnership firm or any
body of persons whether incorporated or not with whom employee who is included in the schedule
attached hereto has a contract of service.
2. The term “Employee” wherever appeared in this policy means any person (other than a person
whose employment is of a casual nature and who is employed otherwise than for the purposes of the
Insured’s trade or business) who has entered into a contract of employment with Insured whether such
contract of employment is expressed or implied, oral or in writing.
CONDITIONS
The Policy and the Schedule shall be read together and any word or expression to which a specific
meaning has been attached in any part of this policy or of the schedule shall bear such meaning wherever
it may appear.
1. On the discovery of any act or default or circumstances which may give rise to a claim, the
Insured shall:
(a) forthwith give written notice to the Issuing Office of the Company;
(b) immediately take all steps to prevent further loss;
(c) supply at the request of and free of expense to the Company all such proof, information
and other evidence (verified by statutory declaration if so required) relating to the claim as the
Company may require.
2. If the Insured is or shall hereafter be guaranteed by any other person, society or company or hold
other security or insurance against such loss as is hereby guaranteed, the Insured shall only be
liable to bear the loss ratable with such person, society or company or securities or insurance.
3. Any money of the Employee in the hands of Insured and any money which but for the
Employee’s dishonesty would have been due to the Employee from the Insured shall be deducted
from the amount otherwise payable under this policy. Any money recovered after the settlement
of any claim shall be the property of the Insurance Company not exceeding, however, the amount
paid by the Company.
4. The Insured shall if and when required by the Company but at the expense of the Company if a
conviction be obtained, use all diligence in prosecuting any of the employee to conviction for any
act which such employee shall have committed and in consequence of which a claim will have to
be made under such policy and shall at the Company’s expense give all information and
assistance to enable the Company to sue for and obtain reimbursement by any such employee by
reason of whose acts or defaults a claim has been made or by the estate of such employee or
money which the Company shall have become liable to pay in respect thereof.
5. Unless the Company be advised and its written approval be obtained, the Company shall not be
liable hereunder in the event of any change in the nature of the business of the insured or in the
duties and conditions of service of the employee or if remuneration of the employee be reduced or
its basis altered or if the precautions stated by the Insured with regard to accounting be not duly
followed or if the Insured shall continue to entrust the employee with money or goods after
having 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 Insured
shall keep an accurate record containing all relevant particulars and shall allow the Company to
inspect such record. The Insured shall within one month after the expiry of each period of
insurance, furnish such information as the Company may require. The premium or renewal
premium shall thereupon be adjusted and 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 be
permitted at all reasonable times to examine into the circumstances of such loss and the Insured
shall 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 and furnish
copies 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 the
liability of the Company under this policy.
8. The Policy shall be null and void in the event of misrepresentation, misdescription or
nondisclosure in any material particular or if a claim be fraudulent or any fraudulent means or
devices be used by the Insured or any one acting on his behalf to obtain any benefit under this
Policy.
9. The Company shall be entitled at its own expenses and for its own benefit, in the name of the
Insured to prosecute all claims and exercise all rights of action competent to the Insured against
the employee in respect of any act insured against in connection with which it may have made
payment under this Policy and the Insured shall give to the Company all such information and
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 of
which notice shall have to be given to the Company cancel this policy by sending seven days
notice by Registered Letter to the Insured at his last known address and in such event, will return
to the Insured the premium less the pro-rata portion thereof for the period the Policy has been in
force or the Policy may be canceled at any time by the Insured on seven days notice (provided no
claim has arisen during the then current period of insurance) and the Insured shall be entitled to
returning of the premium less premium at the Company’s short period rates for the time the
Policy has been in force.
11. The Company shall not be bound to accept any renewal premium nor to give notice that such is
due. Every renewal premium which shall be paid and accepted in respect of this policy shall be so
paid and accepted upon the distinct understanding that no alteration has taken place in the facts
contained in the proposal or declaration herein before mentioned and that nothing is known to
the 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 and signed by
the authorised official of the Company.
12. For the purpose of identifying employee in all cases of change of residence or occupation or
change of name whether by marriage or otherwise, due notice thereof in writing shall be given by
the Insured to the Company.
13. The Company shall not be bound to give notice or be affected by any notice of any trust charged
lien assignment or other dealing with or relating to any contract of insurance but the receipt of
the Insured or his legal personal representative shall in all cases be an effectual discharge to the
Company.
14. Any of the circumstances in relation to these conditions coming to the knowledge of any official
of the Company shall not be the notice to or be held to bind or prejudicially affect the Company
notwithstanding subsequent acceptance of any premium.
15. If any dispute or difference shall arise as to the quantum to be paid under the Policy (liability being
otherwise admitted) such difference shall independently of all other questions be referred to the
decision of a sole arbitrator to be appointed in writing by the parties to or if they cannot agree upon
a single arbitrator within 30 days of any party invoking arbitration the same shall be referred to a
panel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the parties
to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and
arbitration shall be conducted under and in accordance with the provisions of the Arbitration and
Concilliation Act, 1996.
It is clearly agreed and understood that no difference or dispute shall be referable to arbitraion as
hereinbefore provided if the Company has disputed or not accepted liability under or in respect of
this Policy.
It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of
action or suit upon this Policy that award by such arbitrators or umpire of the amount of the loss or
damage shall be first obtained.
It is also hereby expressly agreed and declared that if the Company shall disclaim liability to the
Insured for any claim hereunder, and such claim shall not, within 12 calendar months from the
date of such disclaimer have been made the subject matter of a suit in a Court of Law, then the
claim shall for all purposes be deemed to have been abandoned and shall not thereafter be
recoverable hereunder.
16. The due observance and fulfillment of the terms, provisions, conditions and endorsements of this
Policy in so far as they relate to anything to be done or complied with by the Insured and the
truth of the statements and answers in the said proposal shall be conditions precedent to any
liability of the Insurer to make any payment under this guarantee.
N.B. IN THE EVENT OF DISHONOUR OF PREMIUM CHEQUE THE POLICY
AUTOMATICALLY STANDS CANCELLED AS FROM INCEPTION.