The policy covers the employer in respect of any direct financial loss which he may suffer as a result of employees dishonesty.

The Company agrees to indemnify the insured against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed

1. On or after the date of commencement of this policy
2. During uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof
3. In the case of death, dismissal or retirement of the Employee with twelve calendar months of such death, dismissal or retirement whichever of these events shall first happen.

The liability of the Company shall not exceed

1. (a) in respect of any employee the sum insured stated against his name or as declared herein.
   (b) in respect of all claims under this policy, the total sum insured.
2. If this policy shall be continued in force for more than one period of indemnity or if any liability shall exist on the part of the Company under this Policy and also under any other Policy in respect of fraud or dishonesty of the employee, the liability of the Company hereunder shall not be accumulated or increased thereby but the aggregate liability of the Company during any number of periods of indemnity and for any number of acts of fraud or dishonesty committed by the employee shall not exceed the sum insured hereunder or the sum insured under any other such policy as aforesaid whichever is greater.
3. The Company shall not be liable to pay more than one claim in respect of the action of any one employee.

The Company shall not be liable in respect of losses arising elsewhere than in India.