Cash-in-transit insurance
Insurance of cash and valuables during transport by armored vehicles, storage in cash centers and loading into ATMs, against armed robbery, internal fraud and accident.
Cash-in-transit companies move considerable sums every day between banks, shops, processing centers and ATMs. Their insurance covers the loss of cash and valuables entrusted to them, during transport, during storage in their cash centers, and during ATM loading. The perils covered are armed robbery, theft, fraud or complicity by an employee, accident and fire of the vehicle. Underwriting rests on strict security conditions, often also imposed by regulation: armored vehicles, crews of several guards, dye-staining systems that mark banknotes if cases are forced open, value limits per vehicle and per vault, dual-control procedures. Exceeding a per-vehicle limit, for example, can reduce compensation. Internal fraud is underwriters' first concern: a single complicit employee can arrange a massive loss, as the sector's biggest thefts show. The market is specialized, with capacity concentrated in the London market for international programs. The decline in cash use is gradually shrinking this market, but raises the relative value of the processing centers where stock is concentrated.
Textbook case: an armored van is attacked with explosives during a delivery; the robbers take 1.5 million euros. The insurer pays the cash-in-transit company, but finds the van was carrying 2 million against a contractual limit of 1.2 million per vehicle, and applies the policy rule for that excess.
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