Banker’s Indemnity Insurance Policy
Protect your financial institution with a Banker’s Indemnity Insurance policy. Cover risks such as fraud, employee dishonesty, and theft.
The Rising Threat of Fraud in the Banking Sector
Lately, the Indian financial landscape, especially the banking sector, has been grappling with a troubling rise in fraud and violent incidents. These financial crimes have resulted in significant losses, putting a serious dent in the balance sheets of major financial institutions.
Alarming Fraud Statistics
Data from the various banks shows that between April 2013 and March 2018, around 23,000 fraudulent cases were reported. In many of these instances, bank employees were implicated. Research indicates that fraud accounts for nearly 90% of major operational risk losses for Indian banks. But this issue isn’t confined to India; it’s a global challenge.
Need for Stronger Financial Protection
The uptick in fraud cases has sparked worries about insurance coverage, deductible limits, and self-insured retention levels. Opting for a higher deductible can signal a bank’s confidence in its internal risk management and financial strength. Plus, it enables banks to secure higher insurance limits from the market, making risk transfer more efficient.
What is a Bankers Indemnity Policy?
To protect themselves from financial losses, banks in India often invest in a Bankers Indemnity Insurance Policy from licensed general insurance providers. This policy shields banks from a range of risks, including:
– Theft occurring on the insured’s premises
– Forgery and fraudulent activities –
– Criminal dishonesty and infidelity
– Losses from hypothecated goods
– Wrongful acts by appraisers and employees
Additional Coverage
Most insurance providers offer a standard set of coverage options, but some go further by providing additional protection. For example, certain insurers allow banks to extend their coverage to include:
• Losses related to ATM transactions
• Expenses incurred in minimizing financial losses
• Natural disasters such as earthquakes and fires
• Terrorism-related damages
What’s not covered in Bank Indemnity Insurance Policy?
1. Claims resulting from assumed liabilities in any agreement
2. The Claims arising from a willful violation of the law.
3. Loss resulting from damage to own property or injury
4. Financial loss resulting from any act of terrorism
How to choose the right insurance company?
There are dozens of insurance companies in India, to choose the right insurer, you should choose the company that:
1. Has professionals who have a fair understanding of the array of risks that can be insured
2. Officers that are professionally certified
3. Impartial, objective-based recommendations with the right policy to the exact business requirements
How to get the best policy
Find a specialized industrial insurance policy provider
Deal with specialists. Since specialized insurance companies that deal with Banker’s Indemnity Insurance Policy can give you a comprehensive solution. You need to search for one skilled insurance service provider.
Run a comparison study
You can find several sites offering you information about the various insurance providers, their policies and reviews. By running a comparison study, you can easily find an insurance company that is right for your needs and requirements.
Seek professional help
It would be advisable to find professional help to understand the policy, because, at times, it can be too technical for you to understand, and a person who is expert in the insurance business can help you in spotting the right kind of policy for your business. The insurance expert can make you understand the legal terms associated with the policies.
Read the terms and conditions carefully
Should read the terms and conditions. For instance, you need to know about the social exclusions, the add-ons of the policy, and more. Hence, take out some time and read the terms and condition carefully before buying the insurance plan.
Never let the business be vulnerable to the unpredictability of nature and happenings. You can keep everything under control by availing the best Banker’s Indemnity Insurance Policy for your business and act with a sense of urgency when things go wrong without prior notice. So, stay safe.