This is a type of policy effected by an employer or firm. It is taken against possibility loss of money through embezzlement or misappropriation of fund by their frequent employees in the positions of trust.

This insurance is taken includes Accountants, school bursar, cashiers in the banks, salesman

Therefore the insurance company guarantees to recover the money or indemnity the firm or the boss in the loss arises.

Differences between Contribution and Group Insurances

  Contribution Group Insurance
1. It is one of the principles of insurance. It is a type of insurance.
2. Risk is insured with many insurance company. Many people or a group of employees take a single policy.
3. Each insurance company involved will be liable for only a proportion of the liability insured. The insurance company is liable to every one covered by the single policy.
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