A Deep Dive Into Money Insurance Coverage In The Shopkeepers Package Policy

The shopkeepers of India can be considered as the backbone of local businesses and commerce. Their shops, or enterprises, are centres of innovation and regional entrepreneurship and they support community building. By contributing to the local economy, they play a significant part in the nation’s growth. However, these shops are not far away from risks either. An unfortunate event can occur at any time, leading to a financial loss for the shopkeeper. It is keeping in mind these risks and dangers, and to secure the financial safety of Indian shopkeepers, that the Shopkeepers Package Policy has been designed. It is a general insurance product designed for MSMEs (Micro, Small and Medium Enterprises). While it covers multiple aspects of a shopkeeper’s business, let’s focus on the money insurance coverage aspect of the policy in this article.

Understanding Money Insurance Coverage in the Shopkeepers Package Policy 

Here’s what you should know about this coverage: *

1. Financial transactions are a part and parcel of running a business. However, this regular activity can be a major cause of concern to the shopkeeper if an unexpected event occurs, leading to the loss of money in transit.
2. Under this coverage, the insurer will indemnify the loss in transit of money, while it is being carried by the insured or its employee, due to robbery, theft, or other fortuitous events, during the policy period.
3. Thus, the Shopkeepers Package policy offers comprehensive protection, covering not just robbery and theft, but also other fortuitous events, as specified in the policy wordings.
4. The coverage extends to the employee/s of the enterprise as well, helping ensure that the business is compensated fairly in different scenarios.

Now that the money insurance coverage of this shopkeeper insurance policy may be clearer to you, let’s look at the special conditions applicable to the coverage. Claims are subject to terms and conditions set forth under commercial insurance policy.

Special Conditions under Money Insurance Coverage 

As with other coverages in any insurance plan, the money insurance cover in this plan has a list of conditions too. Certain conditions should be followed to establish the insurer’s liability. Accordingly, the insured shall:

1. Immediately inform the insurer of any insured event giving rise to a claim under the coverage, or an event likely to give rise to such a claim (while specifying the reasons for holding such belief), within 24 hours of its occurrence.
2. Immediately, and in all events, lodge a complaint with the police detailing the money lost for which a claim may be filed, or the circumstances which may lead to such a claim, within 24 hours; a copy of the same along with the FIR to be shared with the insurer within the same period.
3. Deliver to the insurer a detailed written statement of the money lost and an estimate of the quantum of a claim, along with the documents to support the amount, within 14 days.
4. Provide support to the insurer and its various officials with any assistance and additional documents required.
5. Take steps to identify the perpetrator of the robbery and/ or theft, and to discover and recover the money lost.

Claims are subject to terms and conditions set forth under commercial insurance policy. There are other conditions in this general insurance policy which may apply to the insured prior to the occurrence of any event. These conditions state that the insured shall:

1. Take all reasonable steps to safeguard by any means the money which is in transit against insured events.
2. Ensure that security aids and systems specified in the proposal are maintained according to schedule or manufacturer’s recommendations, or if none such exist, they shall be kept in good and working conditions.
3. Make sure that the insured premises are secured with safety installations and aids, including, but not limited to, burglar alarm systems, when they are unoccupied.
4. Keep a contemporaneous daily record of the money in transit and produce it in the event of a claim.

Claims are subject to terms and conditions set forth under commercial insurance policy.

Other Important Points to Keep in Mind

Some important points regarding the money insurance coverage of the Shopkeepers Package Policy include:

1. The money insurance coverage aspect of the policy is also subject to special exclusions as mentioned in the policy wordings. For instance, consequential losses of any kind are not included in money insurance coverage.
2. The Shopkeepers Package Policy also has a list of general conditions and exclusions that apply for the entire policy coverage, unless specified. These conditions and exclusions must also be considered before going ahead with any claim.
3. The policy also includes coverage for building and contents, plate glass, breakdown of business equipment, neon sign/glow sign, electronic equipment, fidelity guarantee, coverage against burglary and robbers, and more, as specified in the policy wordings. *

Claims are subject to terms and conditions set forth under commercial insurance policy. The Shopkeepers Package Policy is a useful MSME insurance plan that can act as a financial safety net for shopkeepers. It is essential to review the plan thoroughly before going ahead.   * Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.