Fidelity guarantee briefing

Product Orientation

Pioneer Insurance and Surety Corporation

FIDELITY GUARANTEE

Pioneer Insurance | Pioneer Life | Pioneer Intercon

Pioneer House Cebu, Cardinal Rosales Ave. cor. Panglao Road, Cebu Business Park, Cebu City 6000 Philippines

Trunkline: (63 32) 238 7777Fax: (63 32) 238 4429www.pioneer.com.ph

No. Name of Company Networth

1 Malayan Insurance Php 5.9B

2 Prudential Guarantee Php 4.7B

3 Php 3.9B

4 BPI/MS Insurance Php 3.8B

5 Standard Insurance Php 2.4B

Top Five (5) Non-Life Insurance(2011 Based on Gross Premium Written)

No. Name of Company Networth

1 Php 7.0B

2 Malayan Insurance Php 6.7B

3 BPI/MS Insurance Php 1.9B

4 Manila Insurance Php 1.5B

5 Chartis Phils. Php 1.4B

Top Five (5) Non-Life Insurance(2011 Based on Networth)

In a nutshell…

• Fidelity Guarantee – An Introduction

• Coverage & Terms

• Difference: Fidelity Guarantee vs Fidelity Bonds

• Clauses & Warranties

• Sample Policy

FG: A Crime Insurance

Coverage against direct financial

losses caused by criminal

activities, e.g.: Robbery,

Burglary, and Embezzlement

Types of Crime Insurance

– Fidelity Guarantee

– Money, Securities & Payroll Robbery (MSPR) [Cash Inside/Outside Premises]

(British: Money Insurance)

– Burglary Insurance (Property)

– Robbery and/or Burglary Insurance (Money)

Fidelity Guarantee

• Definition

Direct financial loss:– caused by act of FRAUD,

DISHONESTY or INFIDELITY – committed by guaranteed

employee – during period of indemnity – whilst acting in his capacity

Comparative

• Fidelity Guarantee Insurance

(closed contract) vs Fidelity

Bond (open contract)

• Fidelity Guarantee – in favor of

the establishment

• Fidelity Bond – in favor of the

employee

Very Important Clauses & Warranties

•Aggregate Limit Endorsement

•Criminal Prosecution & Final

Judgment Clause

•Discovery Period

VI Clauses & Warranties

•Aggregate Limit Endorsement

– Total Amount Payable should

not exceed the limit set-forth in

the policy

VI Clauses & Warranties• Criminal Prosecution & Final

Judgment Clause (P100K up)

– By virtue of Insurance Principle:

‘Subrogation’

– Erring employee should be

charged and arraigned in court

– “Not Guilty” verdict in final

judgment by Supreme Court

Crime Insurance

• Discovery Period

– Not later than 6 months from

resignation, dismissal, retirement

or death of the defaulting

employees

– Not later than 3 months after the

termination/expiry of the policy

– Whichever be the earlier

THANK YOU !!!THANK YOU !!!

You may reach us at...

PIONEER INSURANCEPioneer House Cebu, Cardinal Rosales Avenue

cor. Panglao Road, Cebu Business Park, Cebu CityOr our other branches near you

www.pioneer.com.ph

e-mail: [email protected]