A new insurance policy has been introduced for banks to cover risks with money in cash, lying in vaults, ATM booths and cash in transit.
The Insurance Develop-ment and Regulatory Authority (IDRA) initiated the new non-life insurance policy aimed at covering risks with money being faced by the commercial banks as frequent incidents of money burglary and robbery are reported there.
Incidents of robbery in state-owned Sonali Bank branches in different districts have prompted the introduction of the new policy.
The IDRA designed the policy named Money Insurance after studying experiences of many advanced nations aiming at bringing wider coverage of cash risks.
It has replaced the existing policies on cash in safe, cash in transit and cash on counters.
Under the new and comprehensive policy, risks of money during transit from banks to banks, banks to automated teller machines (ATMs), banks to pavement and money in vaults and out of vaults will be covered.
A senior official at the IDRA said this new policy will cover all risks of money belonging to the commercial banks.
This policy will not be applicable to risks of money outside the jurisdiction of banks.
He said many bank officials have been contacting them for further queries on the new policy.
He also said similar policies are in vague in the US, the UK and even in India.
He said cash that remains on tables or desks in bank premises during business hours will be brought under the insurance coverage.
However, this insurance may be cancelled at any time by the insured by giving 14 days' notice in writing to the insurer which effected this insurance.
To claim benefits of the policy, the insured will have to keep a daily record of the amount of cash lying in safe or strong room and such a record will have to be deposited in a secure place other than the safe or strong room and produced as documentary evidence in support of claim.
The keys of safe or strong room shall not be left behind in the premises out of business hours unless the premises are occupied by the insured or any authorised employee of the insured in which case such keys shall be deposited in a secure place not in the vicinity of the safe or the strong room.
Loss of money on account of shortage due to error or omission and loss occurring in the premises, after business hours, unless the money is kept in locked safe or vault in the strong room, can't be claimed.
The policy is now available in all non-life firms, IDRA sources said.
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