Form of Fidelity Bond granted by an Insurance Company to the Governor of Uttar Pradesh guaranteeing fidelity of a Government Servant (Where the security is of a temporary nature)

In this policy the expressions shall bear the respective meanings attached to them in the schedule :

1. In consideration of the first premium and subject to the terms and conditions contained herein or endorsed hereon which are to be deemed conditions precedent to any liability on the part of the Company so far as they relate to anything to be done or complied with by the Employer.

2. THE COMPANY AGREES TO make good and reimburse to the Employer all such direct pecuniary loss not exceeding the amount guaranteed as the Employer shall sustain by any acts of dishonesty, default or negligence committed by the Employed (a) during the currency of this insurance and (b) during the uninterrupted continuance of employment of the Employed and (c) in connection with his occupation and duties AND DISCOVERED during the currency of this insurance or within six months thereafter or within 12 months after the termination of such employment whichever is later.

3. The particulars and declaration signed by or on behalf of the Employer together with any correspondence relative thereto shall be incorporated herein and be the basis of this contract and of every renewal. And the Company shall not be liable to make any payment hereunder if the nature of the business of the Employer or the duties or conditions of service shall be changed or remuneration of the Employed reduced without notification to the Company, or if the precaution and checks for securing accuracy of accounts shall not be duly observed.

4. Notice in writing shall be given to the Company as soon as possible after any act or acts of dishonesty, or default or of reasonable cause for suspicion thereof or of any improper conduct shall have come to the knowledge of the Employer or of any representative of the Employer to whom is entrusted the duty of superintendence over the Employed and no amount shall be payable under this policy in respect of any act committed after such knowledge shall have come to the Employer or his said representative. Within three months after such notice the Employer shall deliver to the Company full details of his claim and shall furnish proof of the correctness of such claim. All books of accounts of the Employer or any accountant’s reports thereon shall be open to the inspection of the Company and the Employer shall give all information and assistance to enable the Company to sue for and obtain reimbursement by the Employed or by his estate of any moneys which the Company shall have paid or become liable to pay under this policy. Provided always that the Company shall not be entitled to the disclosure of any record or information in respect of which the Employer is entitled to claim privilege in a court of Law under sections 123, 124, 125, 126 and 129 of the Indian Evidence Act.

5. Any moneys of the Employed in the hands of the Employer and any moneys which but for any act of fraud or dishonesty would have been due to the Employed from the Employer shall be deducted from the amount otherwise payable under the policy provided that the Employer is entitled under the law to make such deduction. Provided further that in cases in which the loss to the Employer is in excess of maximum amount payable under the policy, the moneys aforesaid will be applied in the first place to make good such excess and the balance, if any, shall be deducted as herein provided. The Employer and the Company shall share any other recovery (excluding insurance and reinsurance and any counter security taken by the Company) made by either on account of any loss in the proportions that the amount of the loss borne by each bears to the total amount of the loss.

6. If any question or difference shall arise between the parties hereto or their respective representative touching these presents or the construction hereof or as to the right, duties or obligations of any person hereunder or as to any other matters in any wise arising out of or connected with the subject-matter of these presents the same shall be referred to a single arbitrator to be named by the Head of Department. The arbitrator so named shall be an officer of Government and shall have all powers conferred on arbitrators under the Indian Arbitration Act, and the costs of the reference and award shall be in the discretion of the arbitrator. The arbitrator may from time to time with the consent of the parties enlarge the time for making and publishing the award. The making of an award in such reference shall be a condition precedent to any liability of the Company or any right of action against the Company in respect of such difference. If the Company shall disclaim liability for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provision herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.

7. Notwithstanding anything herein contained to the contrary it is also agreed that the Company guarantees to the Employer that the Employed shall honestly and faithfully account to the Employer for all moneys or valuables or property which he shall receive or be entrusted with on account of the Employer either in his personal or individual capacity or as member of a group working conjointly with other members and that the Company will make good and reimburse to the Employer such loss not exceeding the amount of guarantee as the Employer may sustain by any act or acts of default or dishonesty or negligence of the employer in the capacity and employment aforesaid and that when individual liability cannot be brought home to the Employed the amount to be made good shall be that which falls to the share of the Employed calculating from the total number of men forming such group, i.e. the total loss divided by the total number of men employed on the particular work.

8. The Company also agrees that during the period in which this guarantee shall be in force the particulars contained in the schedule shall be with the consent of the Employer and on previous notice to and on payment to the Company of any additional proportionate premium that may become payable in consequence of any change in the Employed by reason of promotion or otherwise be varied as circumstances may require.

Attached to and forming part of policy no._____

Signed on behalf of the Company.

By authority of the Board.


Agency :

Policy No.



The Company :


The Employer :







The Employed :






His occupation and duties—


The amount guaranteed

The annual premium Rs. day of in each year.

The first premium Rs.


The renewal date. The


The currency of this insurance:

The period from the date hereof to the first renewal date and any year thereafter in respect of which the Company shall agree to accept and the Employer or Employed shall pay the annual premium.

Signed on The

Examined. Entered.

Policy no.—






Renewal date—






This Policy should be read carefully and its terms noted in case of default immediate notice must be given to the Company.