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Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy
Dec 31, 2023

What Is Fidelity Guarantee In Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy?

General insurance is indispensable for shopkeepers, serving as a robust shield to protect their businesses from unforeseen risks. This coverage extends beyond just property protection, encompassing aspects like liability and theft. In the unpredictable world of commerce, insurance ensures financial security, enabling swift recovery from setbacks caused by events such as natural disasters or intentional harm through acts like robbery. Shopkeepers with comprehensive MSME insurance gain peace of mind, knowing that their livelihood is safeguarded, allowing them to focus on the growth and sustainability of their business without the constant fear of unexpected financial burdens.* Understanding the various aspects of a shopkeeper's policy is paramount for the policyholder. It empowers them to make informed decisions, ensuring adequate coverage tailored to their specific business needs. Familiarity with policy details prevents surprises during claims, avoiding potential financial setbacks. Thus, it is in the best interest of the policyholder to know their policy details and coverage offered. If you are getting the Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy, you may come across various coverages. One of these is the Fidelity Guarantee cover within the policy. Let’s take a look at what it has to offer.

What is Fidelity Guarantee?

This cover under the Bharat Sookshma Udyam Suraksha Shopkeeper’s Policy talks about the conditions under which the insurance company will provide indemnity for direct pecuniary loss resulting from a deliberate fraudulent or dishonest act by an employee during the policy period. The indemnification is contingent upon several criteria, including the act occurring within the course of the business, the employee's primary intention being personal financial gain, the discovery of the loss within the policy period, and adherence to specified terms such as the deductible, employee sum insured, and limit of indemnity. Essentially, the insurance covers financial losses caused by fraudulent acts of employees, subject to the outlined conditions and limitations.* When delving into the specifics of Fidelity Guarantee within a Shopkeeper's Policy, it becomes evident that this insurance component operates under stringent conditions, comprising both inclusions and exclusions to comprehensively address potential losses due to employee dishonesty.*


Common Fidelity Guarantee cover inclusions are as follows:*

Discovery and Notification Conditions

The policy mandates swift action upon the discovery of any event triggering a claim. Within seven days, the insured must provide written notice, including a loss estimate, to the designated address. If circumstances likely to lead to a claim are identified, the insured must promptly inform the insurer, specifying the grounds for this belief.

Claim Mitigation and Police Involvement

To minimise claim quantum and losses, the insured must take reasonable steps. In cases of fraudulent conduct, lodging a complaint with the police promptly is a prerequisite. Providing the company with a detailed written statement of the loss and necessary supporting documentation within 14 days is vital.

Employee Conduct and Liability Reduction

If multiple employees contribute to a loss, the company's liability is proportionately reduced based on the number of involved employees. Any monies payable to dishonest employees can be applied against the company's liability. The policy also limits the company's liability to the actual cash value of certain items on the day of discovery.

Special Conditions

There are some special conditions that need to be considered.*

Policy Period Continuity

The company, post non-renewal or cancellation, accepts losses discovered within 90 days of policy termination, subject to policy terms, conditions, and exclusions.

Record Keeping

An indicated schedule may require the insured to maintain records of cash or stock held by employees during the policy period, with post-policy submission of a detailed record.

Employee Termination

The policy is deemed cancelled for an employee upon the insured's discovery of fraudulent or dishonest acts, emphasising immediate termination or notice from the company.


The following are the exclusions or limitations of this policy:*

Consequential Losses

Coverage doesn't extend to consequential losses, including loss of profit, legal liability, or losses not reflected in the insured's books of account.

Time Limit on Discovery

The company disclaims liability for fraudulent acts not discovered within 12 months after an employee ceases to be employed by the insured.

Expenses Incurred by the Insured

The company does not indemnify expenses incurred by the insured in establishing the existence or quantification of a claim.

Awareness at Policy Commencement

Exclusions are in place if the insured was or reasonably should have been aware of any circumstance at the policy's commencement.

Business Changes and Proposal Discrepancies

The company is not liable if the insured engages in businesses other than the declared one or if there are material changes, differences in employee duties, or discrepancies in precautions and checks as stated in the proposal. Understanding these intricacies is crucial for shopkeepers to harness the full potential of their Fidelity Guarantee coverage, ensuring comprehensive protection against employee-related financial losses while navigating the conditions and limitations stipulated by the policy. Claims are subject to terms and conditions set forth under MSME insurance policy.   *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.

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