Employee Dishonesty Fidelity Guarantee Insurance Malaysia

Fidelity Guarantee Insurance in Malaysia

Employee dishonesty insurance is known as fidelity guarantee insurance in Malaysia. This insurance is for employers to cover loss of money or property because of an employee’s dishonest action.

Fidelity Guarantee for Employee Dishonesty Coverage

This employee dishonesty insurance covers losses to the business that can be measured in monetary terms (pecuniary) that has industry standard controls. This insurance usually covers the following items that belong to the employer:

  • Cash
  • Money in credit and bank facilities
  • Goods and stocks in inventory

Employee Dishonest Activities Covered

This fidelity insurance covers the following activities by dishonest employees. These activities would be targeted against the employer’s own properties as follows:

  • Larceny (taking another’s property without permission)
  • Embezzlement (taking another’s property (that was entrusted to the person) for personal gain)
  • Forgery (creating and using false documents)
  • Fraud (deception with an intention of personal gain or satisfaction)

Fidelity Bond Insurance

Fidelity bond is taken by companies who send employees to customer premises. This bond is to cover for theft of the customer or the third party’s cash and valuables by the employee.

Fidelity Guarantee Insurance Policy in Malaysia

What is a fidelity guarantee insurance policy?

A fidelity guarantee insurance policy is to provide coverage for losses incurred due to a trusted employee’s criminal activity against the employer. This policy will name the employee, duties of the employee and the employer’s controls in place.

How do we calculate the sum insured for the fidelity guarantee insurance policy?

You will state on the proposal sum how much you want to be insured for. The amount of guarantee that you want to be reimbursed for a dishonest action of the employee.

What is the fidelity guarantee insurance claim process?

This employee dishonesty insurance claims process differs between insurance company SOPs. It is generally as follows:

1. Police report
2. List of items stolen
3. Insurance adjuster investigation report
4. The excess to be paid by you as stated in the policy (if any)

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