MONEY INSURANCE
OUTLINES
INTRODUCTION SOPE OF LIMIT OF
01 02 COVER 03 LIABILITY
04 05 06 07 08
EXCLUSION UNDERWRITING CLAIM WARRANTIES & CLAUSE
CONSIDERATION PROCEDURES ENDORSEMENT
Introduction
Money Insurance
This policy is intended to The policy is issued on All Risks
indemnify the insured against loss basis; which offers coverage for
of money in transit or in premises all perils except those specifically
by any causes unless otherwise named/ mentioned in the policy
excluded form the policy
Money can defined as; ‘a piece of paper which of itself has a value’
(e.g. coins, bank/ currency notes, stamps) and or ‘ a piece of paper
which needs to be converted into value’ (e.g. cheques, bank drafts,
money order, postal orders, etc)
Scope of Cover
❑ Loss of money by actual destruction,
disappearance or wrongful abstraction of
Loss of money money whilst being conveyed by the insured
in transit or insured’s employees or managers or
custodians as authorized by the insured –
Normally insurers accept carryings done on
behalf of the insured by security
Scope of organizations.
❑
cover Loss of money in Cover operates during the entire duration of
the transit within the territorial limits specified
premises under the policy (within Malaysia, Singapore
and Brunei only) AND whilst overnight in the
residence of the insured’s authorized
employees/ custodians/ managers.
❑ If the money is for the purpose of paying
Loss or damage wages, cover normally continues until the
to safe/ cabinets/ wages have been paid out to the employees;
but in this event, if the money not paid out to
drawer/ strong
the date of collection, it must be kept in a
room locked safe/ cabinet/ drawer/ strong room at
all times
Scope of Cover
Loss of money in
transit
Scope ❑ Loss of money by actual destruction,
of cover Loss of money
in premises
disappearance or wrongful abstraction
within the described premises OR money
kept in locked safe/ drawers/ cabinets/
strong room.
❑ Money whilst kept in the cash registers; but
is restricted to business hour only.
Business hours means period which the
Loss or damage insured’s premises are actually occupied
to safe/ cabinets/ for business purposes and during which
drawer/ strong the insured or the insured’s authorized
room employees entrusted with money on the
premises.
.
Scope of Cover
Loss of money in
transit
Scope
of cover Loss of money in
premises
Loss or damage ❑ Loss or damage to safe/ cabinets/
to safe/ drawers/ strong room as a result of
theft or attempt theft.
cabinets/
drawer/ strong ❑ Loss or damage to ‘cash register’ is
room not covered under Money Insurance
Policy.
Limit of Liability
Money in Transit Money in Premises
❑ The limit selected should be the ❑ The limit selected should
‘maximum likely to be carried at be represent the amount
any one time’. This amount likely to be kept in the
represents the insurer’s limit of premise/ safe/ cabinet/
liability. drawer/ strong room/
cash register.
❑ The ‘provisional premium’ .
payable is based on the
estimated amount of money
likely to be carried during the
period of insurance.
❑ A ‘realistic basis’ should be used
to arrive at the estimate. At the
end of each period of insurance,
the actual amount of money
carried for the period has to be
declared and the premium will
be adjusted accordingly.
Exclusion
❑ Loss of money which occur
on premises outside ❑ Loss of money from the
❑ Loss of money caused by
business hours unless the premises (safe or strongroom)
the collusion or fraudulent
money is in a locked safe following use of the key or
embezzlement by the
or strongroom. duplicate key unless the key
insured or any person in
❑ . has been obtained by threat or
the service of the insured.
by violence to any person.
.
❑ Loss caused by the act of ‘cheating’ ❑ Loss of money due to the dishonesty
of an employee unless loss
❑ Loss or damage caused by fire, discovered within three working days
nuclear risks, explosion, lightning, of occurrence. (some insurer stated
earthquake, war risks, riot or civil that the loss must be discovered
commotion, radioactivity, flood etc. within seven days of occurrence)
❑ Loss or shortages due to error or
❑ Loss of money from unattended vehicle.
omission.
❑ Interruption of business or other
❑ Loss of money arising outside territorial
consequential loss.
limits.
❑ Loss due to the acts of ‘criminal breach
of trust’
Underwriting Underwriter will discriminate the nature of premises. For examples:
Consideration Location
Considered hazardous for premises located in
isolated or area prone to theft
One of the most important underwriting factors is the moral
hazard aspect of the risk. Underwriter will verify the moral Construction
hazard of the proposer. Usually, the money insurance proposal Year of built, wall construction, roof construction, details of fencing
should be considered only if the proposer is of good repute and etc. Considered hazardous for premises with inferior construction,
has a good track record (in respect of proposer’s business i.e. class 3 construction.
reputation and financial standing). The loss experience of the
proposer for the past 3 to 5 years must also be checked to Protection
ascertain the past claim history. All premises should be protected by a burglar alarm system of a reputable
brand and installed by a reputable company.
Occupancy
To know whether the premises is occupied after the business hours – less
hazardous if the insured or someone responsible person occupy in the
premises.
Nature of Safe/Strongroom
Other than that, underwriter will also discriminate the nature of safe or
strongroom in which the money will be kept. For example, when a safe is
Money in Premises specified in the policy, an underwriter will discriminate its make and model,
together with its location and also will consider whether it is fixed to the
building. (Thief-resisting safe or strongroom will be considered as low
hazardous
For transit risks, particular attention will be taken into account. For
example:
Underwriting Distance
Distances between the various points of transit – usually the distance should
Consideration not be too far away – if it exceeds 20 kilometers, the exposure is increased
and the risk should be rated accordingly.
Nature of route
One of the most important underwriting factors is the moral Nature of routes to be followed – to check if the route includes any
hazard aspect of the risk. Underwriter will verify the moral deserted roads, i.e. estate risks which increase the risk of robbery.
hazard of the proposer. Usually, the money insurance proposal
should be considered only if the proposer is of good repute and Amount of money
has a good track record (in respect of proposer’s business Maximum amount of money carried at any one time and total estimated
reputation and financial standing). The loss experience of the
annual carrying.
proposer for the past 3 to 5 years must also be checked to
ascertain the past claim history. Frequency
Frequency of carrying and risk management measures taken.
Employees
Number of employees involved, their position, length of service and personal
records.
Mode of carriage
Mode of carriage of the money and the security arrangements undertaken – to
Money in Transit check if the money is carried by foot/motorcycle/motorcar/vsn or security personnel.
(For example; if the money exceeds RM20,000, then it must be carried by car
accompanied by at least 2 persons and if the money exceeds RM100,000, then it
must be accompanied by security guard.
Claim Procedure
In the event of money
The insured must The insured must as In the event of lost in premises or in
immediately soon as possible money lost in safe or strongroom, the
• give notice to inform insurance transit, the insured insured must submit:
company in writing – must submit: • duly completed claim
the police and form,
• take all to inform the • duly completed • police report,
practical steps circumstances of claim form, • audit trial and
to discover the loss, place of loss • police report, • supporting documents
guilty person and the estimated • records showing leading to estimated
and loss amount. amount carried amount of loss,
. and • burglar alarm
• to recover the service/maintenance
money lost. • personal records where
(usually within particulars of applicable and
24 hours from carriers. • evidence of
the breakdown of
occurrence). defenses such as
damaged strongroom
etc.
Warranties
Key Warranty
❑ Whenever the premises are closed for business, all keys and records of
combination numbers of the safe/drawer/cabinet/strongroom must be
removed from the premises.
❑ If the person(s) holding the keys and records of combination numbers
resides in a residence adjoining and communicating with the premises,
there must be removed from the residence when left unattended
Burglar Alarm Warranty
❑ Burglar alarm must be installed at the premises
❑ It must be inspected, maintained, efficient and kept in working order
during the currency of the policy.
Endorsement
Personal Accident Assault Extension
Endorsement (Personal Accident Benefits)
In consideration of the payment of an additional
premium; the insurer will pay compensation for
death or bodily injury sustained by the
employee(s) of the insured whilst traveling with
and handling cash in transit (caused by the
assailant in an attempt to rob whilst the person
insured is carrying money on behalf of the
insured or proceeding to or returning from the
carrying of such money).
Clause
Abscondment by Messenger Clause
This policy will provide cover for loss of
money while in transit due to a loss by
the insured’s messengers and
authorized representative – provided
that the loss is discovered within
three/seven days from the date o such
happening.
Key Clause
This policy does not cover the loss of
cash abstracted from the safe or
strongroom following the use of the key
or any duplicate belonging to the insured
unless such key has been obtained by
threats of violence and that the safe or
strongroom be kept locked except when
in immediate use.
THANK YOU
