Miscellaneous Insurance Policies
The crime and specialty covers that fill the gaps between fire, motor and liability.
Fire, marine, motor, engineering and liability have their own chapters. Everything else a business needs sits in the miscellaneous bucket: crime covers such as burglary, money and fidelity guarantee, glass, and the policies written for banks. Each is small on its own, but together they are the bread and butter of a branch office's commercial book.
The common thread is that most of these covers respond to a specific way of losing property, defined tightly in the wording. Learning those definitions is most of the topic.
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The Core Miscellaneous Policies
Burglary and housebreaking (business premises)
What triggers a claim
Theft following actual forcible and violent entry to, or exit from, the premises
Key condition or exclusion
Theft without forced entry (shoplifting, an inside job) is not burglary. Cash is covered only in a locked safe.
Money insurance
What triggers a claim
Loss of money in transit by the insured or its authorised employees, or in the safe or strongroom, by robbery, theft, burglary or hold-up
Key condition or exclusion
Shortages from errors are excluded. Employee dishonesty is excluded except the cash carrier's fraud in transit discovered quickly.
Fidelity guarantee
What triggers a claim
Direct financial loss from fraud or dishonesty of an employee in connection with their duties
Key condition or exclusion
Loss must be discovered within the policy's discovery period; the employer must keep agreed checks on the employee.
Plate glass
What triggers a claim
Accidental breakage of fixed glass such as shop fronts and display windows
Key condition or exclusion
Scratching, and breakage during alteration or removal, are typical exclusions.
Banker's indemnity
What triggers a claim
A bank's loss of money and securities on premises and in transit, plus forgery and employee infidelity
Key condition or exclusion
A package for banks, combining money, fidelity and forgery risks.
| Policy | What triggers a claim | Key condition or exclusion |
|---|---|---|
| Burglary and housebreaking (business premises) | Theft following actual forcible and violent entry to, or exit from, the premises | Theft without forced entry (shoplifting, an inside job) is not burglary. Cash is covered only in a locked safe. |
| Money insurance | Loss of money in transit by the insured or its authorised employees, or in the safe or strongroom, by robbery, theft, burglary or hold-up | Shortages from errors are excluded. Employee dishonesty is excluded except the cash carrier's fraud in transit discovered quickly. |
| Fidelity guarantee | Direct financial loss from fraud or dishonesty of an employee in connection with their duties | Loss must be discovered within the policy's discovery period; the employer must keep agreed checks on the employee. |
| Plate glass | Accidental breakage of fixed glass such as shop fronts and display windows | Scratching, and breakage during alteration or removal, are typical exclusions. |
| Banker's indemnity | A bank's loss of money and securities on premises and in transit, plus forgery and employee infidelity | A package for banks, combining money, fidelity and forgery risks. |
Burglary in Practice
A Chennai electronics dealer's showroom is broken into at night through a cut shutter, and televisions are carried out. That is burglary: forcible and violent entry. If instead a customer pockets a phone during the day, there was no forced entry, so the burglary policy does not respond. A typical wording also pays for damage to the building caused by the burglars and, where the keys to the safe were taken by force or threat, cash taken from the safe using those keys. Riot, strike and malicious damage and terrorism can be added for extra premium.
Large warehouses are often insured on a first loss basis: the sum insured is set at the maximum likely loss in one burglary rather than the full stock value, because thieves cannot empty a whole godown in one night.
Fidelity Guarantee Forms
- Individual policy
- Covers one named employee for a stated amount.
- Collective policy
- Covers a group of named employees, each for a stated amount, in one policy.
- Floater policy
- One amount floats over a group of named employees; a loss by any one is paid up to the floating amount.
- Blanket policy
- Covers all employees of the organisation without naming them, suited to large employers such as banks.
- Positions policy
- Covers whoever holds stated positions (cashier, storekeeper) rather than named persons.
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Specialty Covers in Brief
Chapter 4 also names a set of specialty covers. Know what each protects; detail is not tested.
| Cover | Protects against |
|---|---|
| Body parts | Loss of use of a part central to a career, such as a singer's voice or a footballer's legs |
| Title insurance | Defects in title to land: unclear title, defective rights of way, restrictive covenants |
| Event cancellation | Costs lost when a concert, exhibition or wedding is cancelled or abandoned for a covered reason |
| Satellite | Pre-launch, launch, in-orbit and third-party liability risks of a satellite |
| Credit insurance | A seller's loss when a buyer fails to pay for goods supplied on credit |
| Cyber | Hacking, data breach and virus losses, with liability to affected third parties |
How IC-11 Tests This
Expect definition questions: burglary needs forcible and violent entry or exit; fidelity guarantee pays for employee dishonesty, not errors; which policy covers a dancer's legs (body parts) or an unclear land title (title insurance); satellite cover's four stages. The trap is an option that sounds close, such as event cancellation for a body parts question, or personal accident as a satellite risk.
FAQs
What is the difference between burglary and theft in insurance?expand_more
Burglary in a policy means theft following actual forcible and violent entry into, or exit from, the premises. Theft without such force, such as shoplifting, is not covered by a standard burglary policy.
What does money insurance cover?expand_more
Money in transit between the bank and the business by the insured or authorised employees, and money kept in a locked safe or strongroom, against robbery, theft, burglary and hold-up, up to a limit per loss for each section.
What is a fidelity guarantee policy?expand_more
Insurance that pays an employer's direct financial loss caused by fraud or dishonesty of its employees in the course of their duties, discovered within the policy's time limits.
What is title insurance?expand_more
A specialty cover that protects a buyer or lender against loss from defects in the title to land, such as an unclear title or a restrictive covenant discovered after purchase.
Next steps
- Liability Coversarrow_forward
- Personal Accidentarrow_forward
- Deductiblesarrow_forward
- IC-01: Physical and moral hazardarrow_forward
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