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FINANCIAL INSURANCE

	Apart from Insurances for Direct Property damages there are other insurable losses which may not be a direct result of a physical damage but could still result in financial losses to the Policy Holder. Some of such Insurances are described below Credit Risks Fidelity Guarantee Loss of Profits Insurance Money in Transit

Credit Risks

These are specialized insurances - and designed to protect the Insured- mainly Companies against the risks of the buyer's insolvency or default.
Scope of Cover The cover generally provided is for the money due under the invoices when the amount becomes a bad debt due to reasons such as insolvency/default of the buyer, political disturbances in the country goods have been exported to, change of government and regulations, which prevents the seller/supplier from receiving the amounts due to him.
The amount payable would usually be for the insured percentage of the net debt or the credit limit if the net debt exceeds the credit limit. In effect nothing more than the credit limit will become payable. Usually it would be for a specified percentage of the bad debt. A deductible is almost always imposed. The indemnity would be in respect of such shipments and services performed within the period of insurance for which invoices have been sent to buyers within the maximum invoicing period.

Types of covers
Cover can be taken for a Policy period of the normal 12 months covering Insured’s entire turnover. Separate credit limits for individual buyers can also be fixed.

Premium
Usually payable as deposits against the estimated sales and adjusted on actual sales at the end of the policy period.

Customers
Mainly Exporters of goods and services.

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Fidelity Guarantee Insurance

This policy reimburses for direct pecuniary loss due to acts of fraud or dishonesty or forgery or embezzlement committed by any of the Insured's employees in connection with his/her occupation during the uninterrupted continuance of employment.

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Loss of Profits Insurance (LOP)

This policy is devised to cover the monetary loss arising from the interruption in the business activity due to physical loss of the property by an event covered for insurance. The insurance is to be taken for a sum equivalent to the loss of gross profit during in the period of interruption envisaged for the restoration of the property damaged by the event covered for insurance. The insurance will also cover the increased cost of working in maintaining the revenues/turnover besides the reduction in gross profit.

This insurance is given only if there is a basic Fire and allied Perils Policy and/or Machinery Breakdown Policy, which covers the Material Damage of the asset insured. The admission of a claim under the material damage policy is a prerequisite for admission of a claim under the LOP Policy.

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Money in Transit

This policy provides cover against loss of money in transit whilst being carried as described in the policy by the Insured or Insured's authorized employee(s), occasioned by robbery, theft or any other fortuitous cause. It also covers loss by burglary of house breaking whilst money is retained at Insured's premises, in safe(s) or strong room.

Organizations can take this policy for cash carriage from or to banks, while in transit from one branch to other branch.

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Tem India Insurance Broking Services Pvt Ltd is an IRDA licensed Composite Broker bearing license no. CB-002/ 02