Money Insurance-A Reality!


Money Insurance

Cash and cash equivalents like cheques and demand drafts represent the lifeline of every business and laboratories are no exception. Often lab employees have to carry cash while on duty / in transit, to and from bank, when it may be knocked off. Treasury notes, postal orders and current postage stamps are also covered.Money insurance covers this risk, under what is called Section I cover. Section II covers risk of loss of cash received during the course of business or locked up in a safe in the lab premises.

Computation of sum insured

The sum insured is worked out by reckoning two factors:

  1. Amount of money likely to be transited during the year;
  2. Maximum liability the lab is likely to sustain from one instance of loss.

Risks that can be covered additionally

Additionally, the lab can cover the following risks, optionally:

  • Infidelity (disloyalty) on the part of employees
  • Disbursement losses.
  • Terrorism.

Points to remember

  • The lab should, however, take note of following exclusions:
  • Shortage of cash arising from error or omission.
  • Shortage attributable to dishonesty on the part of a lab employee or fraud
  • Any risk / loss already covered by other policies.
  • Other exclusions

Money insurance does not cover loss or damage arising from:

  • Flood, cyclone,earthquake and other events attributable to nature
  • War and warlike operations
  • Civil commotion,riot and strikes
  • Terrorist activities
  • Shortage arising from use of keys to safe(s) or strong room, unless such keys are obtained by force or threat, while being carried under a contract of airfreight
  • Theft from unattended vehicle
About Dr. Deepak Bhanot

Dr Deepak Bhanot is a seasoned professional having nearly 30 years expertise beginning from sales and product support of analytical instruments. After completing his graduation and post graduation from Delhi University and IIT Delhi he went on to Loughborough University of Technology, UK for doctorate research in analytical chemistry. His mission is to develop training programs on analytical techniques and share his experiences with broad spectrum of users ranging from professionals engaged in analytical development and research as well as young enthusiasts fresh from academics who wish to embark upon a career in analytical industry.

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