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Fidelity refers to the faithfulness or loyalty to performance of a duty and Fidelity Guarantee policy is insurance against the results of dishonesty or disloyalty of employees.

It indemnifies the employer against direct financial loss and also loss of stock, which might result from acts of dishonesty by an employee in the course of employment.

The policy normally provides that all such acts insured against are discovered not later than six months after resignation, dismissal, retirement or death of the defaulting employee nor later than three months after the termination of the policy whichever happens first. The object of imposing a time limit for discovery is to prevent stale claims, which will be troublesome to investigate, and where the insurer’s right of recovery might be prejudiced.

The policy covers acts committed ‘during the period of insurance’.

It is important to insist on the actual amounts of guarantee per employee, collusion limit and an aggregate figure for the year where many employees are covered.

The stratification of occupation should be done to enable proper evaluation and anticipation of the extent of exposure per risk.

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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