Money Insurance: What you need to know
Money determines almost all our endeavors value and so should be kept safe.
We all handle money in some form in our day to day lives. It can be cash, cheques, credit card slips, mobile money, bankers’ drafts and others. Money determines almost all our endeavors value and so should be kept safe.
And this is why Money Insurance is essential for individuals, small and even large businesses. According to the Association of Kenya Insurers (AKI), Money Insurance is simply an insurance that compensates a person or a business against loss of money.
The money insured could be at home, contract sites, or cash in transit in vehicles or carried in person. Money Insurance policy will cover loss of money in varying scenarios including, burglary and by use of force or threat of the person with the money. A Personal Accident cover is also included for those carrying money.
In Kenya, currently, the Money Insurance policy features can include:
- Money in transit to and from banks, carried by employees.
- Individual money lost after a personal assault.
- Money on business premises, in or out of safes.
- Personal and safe damages.
- Cover for money in the home of an employee or a director of a company.
- Cover for money in safety deposits and others.
Any person or business would consider Money Insurance policy for essential protection of financial assets, protection of employees and others who transport monies, minimising disruption to a business as well as covering risks that are excluded in other insurance policies in the market.
However, in Kenya, Money Insurance does not cover mobile or electronic money like in M-pesa, Airtel, Equitel and other such accounts. For instance, when money in the mobile phone is transferred following robbery or threat at gunpoint. However, cover for such risks can be extended at an additional premium or insured under a separate cover.
Other exclusions in money insurance policy includes:
- Any loss of money in which an employee of the insured or member of the insured’s family is directly or indirectly involved.
- Unexplained losses and/or shortages due to errors or omissions.
- Any damage or loss of money occurring because of use of any keys, unless access obtained by force, violence, assault or threat.
- Theft or loss of money by employees through manipulation of any computer software.