Banker’s

Indemnity
Policy
Bank’s insurance against unforeseen
losses
 Contents

• Brief of the Policy

• Risks Covered

• Exceptions not
covered

• Guidelines for Cash

Movement
 BRIEF OF THE INDEMNITY POLICY

All Branches/ Coverage Basic: ₹10 Crore for • Loss on Premises: ₹

Sum
Offices of Bank Span Whole Bank plus 220 Crore
Insured
additional • Loss in Transit:
₹ 35 Crore
• Loss in Alternate
• Bank to bear Channels:
first ₹5000 for each ₹
The Oriental Excess loss
Company 8 Crore
Insurance Co. Ltd. Clause • No excess of loss in branch keys &
dacoity
• Loss due to terrorism: Excess 1% of
claim (min.₹25000; max.₹10 lakh)
Includes Retroactive
Against Perils of • Loss due Period
For Incidents to fraudulent staff:
of 05 Excess
years i.e.
Special occurring 5%and of claim (min.₹25000;
losses max. ₹1in
occurring
Nature: Validity
Coverage reported in lakh)
FY 01.04.15 – 31.03.20 and
Extended Upto
2020-21 reported in FY 2020-21
₹ 283 Crore
RISKS COVERED UNDER THE POLICY

• Loss of cash, jewels, securities during

regular course of business
• At Branches, ATMs, Extension counters /
On satellite / mobile offices, e-lounges,
Premises mobile ATMs, coin vending machines
etc.
• Contents of lockers & SFVMs with
branches not covered

• Loss of cash, jewels, securities during

transit in the hands of employees
In Transit • Stolen / Lost / Misappropriated /
Mislaid / Lost to terrorists
RISKS COVERED UNDER THE POLICY

• Loss due to forgery / alteration of

cheques, withdrawal slips , demand
Forgery & drafts, title deeds, trust deeds, KYC
documents etc.
Alteration • Any claim by customer regarding
fraudulent cheque withdrawal from his
account.
• Any act of dishonesty or criminal act of
Employee employee
Dishonesty • Either done solely or in connivance with
others
RISKS COVERED UNDER THE POLICY

Post & • Loss due to theft or robbery intended to

be dispatched by regd. / speed post or
Courier courier from Bank

• ATMs, BNAs, Cash recyclers, Debit

Alternate Cards, Credit Cards, Net Banking ,
Electronic Mobile Banking, IMPS, UPI, Bharat QR,
Delivery BHIM Aadhaar, PoS, e-
Channels commerce, AEPS or any new technology
introduced similar to these
RISKS COVERED UNDER THE POLICY

• Fraudulent / Dishonest acts – total ₹2

Infidelity
lakh.
of BC / • In Transit - ₹1 lakh; In Safe - ₹0.50 lakh;
Facilitator In Counter - ₹0.50 lakh.

Infidelity • Total ₹75 lakh per empaneled appraiser.

of Jewel • In employee involved with appraiser,
Appraiser claim under employee dishonesty criteria.

• Covered provided such agent is a regular

part-time commercial agent of the Bank.
Tiny Deposit • Appointed after full scrutiny of
Agents
antecedents guaranteed by two
independent reliable persons.
RISKS COVERED UNDER THE POLICY

Maximum ₹2 lakh per claim towards cost of replacement of safe keys

(including related locks) lost by employees due to -

1. Theft
2. Burglary
3. Any other reason,

With or without the negligence of the employee at either –

4. In Transit
5. At their residence
6. Inside Office premises
7. Any Other place
 EXCEPTIONS NOT COVERED UNDER THE
POLICY

Occurrences of Other Losses

War / Invasion / Act of Foreign Enemy / Warlike
operations
Mutiny / Military or Popular Uprising / Martial Law
/ Siege
Rebellion / Revolution / Insurrection / Usurped
Power
Wholly or Partially wrongful acts of any Directors /
Partners who are not salaried
Direct / Indirect losses from trading in the name of
the insured with / without its knowledge,
irrespective of conducted by employee in / outside
authority
Losses due to radioactivity from any source
including nuclear weapons and ionizing radiations
GUIDELINES FOR CASH MOVEMENT
For UP, Bihar, Jharkhand, Chattisgarh, Orissa

For Remittances ≤ ₹20 lakh

• Armed escort may not be necessary
• Bank’s Cash van always with armed guards

₹20 lakh < Remittance ≤ ₹50 lakh

• At least one armed guard

₹50 lakh < Remittance ≤ ₹3 Crore

• At least two armed guards

Cash remittance per instance should not exceed ₹ 3 crore

GUIDELINES FOR CASH MOVEMENT
For North East and sensitive areas

For Remittances > ₹20 lakh

• With proper police escort
• SP may provide escort by CRPF / BSF is available
• Should be done within daylight
• Route planning to be done in consultation with
security forces
• Proper information of vehicle hired from local P.S. to
be taken
• Avoidance of remittance during strife conditions
GUIDELINES FOR CASH MOVEMENT
For Rest of India

For Remittances ≤ ₹40 lakh

• Armed escort may not be necessary
• Bank’s Cash van always with armed guards

₹40 lakh < Remittance ≤ ₹50 lakh

• At least one armed guard

₹50 lakh < Remittance ≤ ₹10 Crore

• At least two armed guards – own escort or outsourced

Remittance > ₹10 Crore

• Escorted by Police
 REFERENCES

S. No. Circular / Resource Date Description

Main Sub

1. ADMIN- SECU-01 03.04.2020 Banker’s Indemnity Policy for the FY 2020-21

05/2020-21
2. ADMIN-81/2018- SECU-11 27.02.2019 Security of Cash in Transit – Reiteration of
19 Guidelines
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