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7th April 1972, Page 41
7th April 1972
Page 41
Page 41, 7th April 1972 — insurance
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Which of the following most accurately describes the problem?

Steps an operator should take

by John C. Vann

• The slogan used to be — "Crime does not pay". Nowadays, unfortunately, crime often does pay. As ever, money is still the main attraction for most burglars. What insurance steps can an operator take? A burglary policy doesn't cover money. What is needed is a separate money policy.

Insurance companies used to .issue cash-in-transit policies basically to cover loss of cash while in transit to and from the bank. But in the past decade or two the cover given has widened greatly and hence money insurance has come into being. Money is now regarded as meaning cash, bank and currency notes, cheques, postal orders, money orders, unused postage stamps, used or unused National Insurance, National Savings and holidays with pay stamps and luncheon vouchers.

Under modern conditions it is essential for a firm that loss of money is insurable. What is needed is as wide a cover as possible so as to apply to the carrying of money in connection with a firm's business and the retention of money on a firm's premises either temporarily or until it is deposited in a bank or until it is paid out in wages. Furthermore, cash which is always kept on the premises for use in the business may need to be insured.

Money policy

With these requirements in mind, insurers have produced a very wide form of money policy. This covers loss of money in transit anywhere within the territorial limits shown in the policy, which generally do not extend outside Great Britain, Ireland and Northern Ireland. The cover also applies to money on the firm's premises while they are open for business, either in or out of a safe. But after-business-hours cover applies to. the money only while it is in a securely locked safe or strong room, including a, night safe at a bank.

However, a concession is normally given for money out-of-safe outside business hours. Up to £100 is covered by some insurers, thouph others stipulate a limit of £25 or £50. This limit has to be carefully watched, particularly if there is no safe.

Exclusions need watching, too. You'd be wasting your time if you claimed for 'Shortages due to error or ommision. You also don't get cover for depreciation in value or for losses provided for by other insurances. • As an optional cover extension, insurers offer personal accident insurance for the messengers because robbery is so often accompanied by personal violence. This cover as a rule is granted for 10 per cent extra premium. Precautions should always be taken, such as ensuring that two persons to visit the bank and never at a fixed time each day. If the route can be varied, this should be arranged.

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