In the organization the most valuable asset are their employees. Every organization make sure that they employ best talent for the job. Employers have to select person in short span of time which actually not enough to know the person entirely. Sometimes selection of particular employee can go wrong. The successful functioning of any business is often based upon their employees. An employee at times misuses the powers which are given to them.

            Organizations are experiencing rise in the frauds and dishonesty among the employee. Even the best of working environment witnessing the frauds of employee. It has been seen that employee who commits the frauds are working in the organization for longer periods. The reasons which usually found in the most cases are insufficient salary, emergency, etc. Often frauds are happen on daily basis with smaller volumes. But eventually when it discovered turns out to be big. Smaller organizations are generally venerable to this kind of frauds.

            Frauds are generally happens with position where cash, stocks are handled. Cashier, Accountants, Stock keepers are the ones who are leading scoreboard in frauds. Frauds are of many types like burglary, larceny, theft of money, securities, office equipments etc. Other frauds which tend to occur like misuse of confidential data which causes enormous losses. Organization needs to have strong system, accountability which will help to discover the loss in quick time.   

Fidelity Guarantee Insurance which provides protection to the employers in event of frauds, embezzlement, dishonesty which cause losses. Fidelity Guarantee Insurance compensates the employer if they are suffering from financial losses arising out of frauds. Policy covers the employer in the respect of any direct financial loss only and not consequential loss which he may suffer from the dishonesty.

Types of Fidelity Guarantee:

1)      Individual Policy: This covers named individual for specific Sum Insured.

2)      Collective Policy: Covers group of employee with specific Sum Insured according to employee’s position and responsibility.

3)      Floater Policy: Covers a group of people with single Sum Insured floating on all the employees.

4)      Blanket Policy: The insurer for certain cases issues this policy, which is issued on unnamed basis, in the respect all employees group under categories e.g. Cashier, clerical staff etc.

Insurance company will indemnify insured subject to dishonesty committed during the policy period and during uninterrupted continuance of employment of said employee. 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.

There are also conditions on discovery of the frauds, insurance company will not provide any compensation if frauds are not discovered within specified time allow by the insurance company. This condition makes sure that insured has well established system to countercheck operations and will not entertain any organization with poor system of accountability.    

Nowadays with the rising dishonest nature and frauds of employees Fidelity Guarantee Insurance Policy certainly provides an important helping hand to the employers in the unfortunate seen.