What is the meaning of Money, under Money Insurance?
The business houses are insuring their money ,for the risk during transit between bank and insured’s premises and kept in safe or Till/Counter. Generally, every Insured has an impression that Money insurance covers the risk of cash only but every policy defines money as “Money means cash, bank drafts, currency notes, treasury notes, cheques, postal orders, money orders and current postage stamps, revenue stamps, court fee stamps and the like belonging to the Insured.”
However, in the monthly declarations(if at all he declares) only Cash transactions are declared by the insured.
However, as and when any claim arises, the Insurer deputes the Surveyor of accounting background, to verify the transaction of “Money”. As per definition , he considers cheques/ bank drafts as well , as part of transactions and proves that the total transacted amount, exceeds the sum insured & the premium is recoverable from the Insured. Sometimes the premium recovery is more than the claim amount.
Hence, it is suggested that while taking out the money insurance policy, the money should be defined as cash only .
Further, this being an adjustable policy, the premium of un-utilized sum insured , can be refunded/demanded from the insured , at the expiry of the policy, based on the total transacted amount.
The claim is also not rejected on account of short premium but the same can be adjusted against the claim amount, provided the full year premium is paid in advance.