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CRED 7A.4 Insurance against fraud or other dishonesty

CRED 7A.4.1R

A credit union must at all times maintain in force a policy of insurance complying with CRED 7A.4.2 R.

CRED 7A.4.2R

In order to comply with CRED 7A.4.1 R, a policy of insurance subject to the exception in CRED 7A.4.3 R:

  1. (1)

    must insure the credit union in respect of every description of loss suffered or liability incurred by reason of the fraud or other dishonesty of any of its officers or employees;

  2. (2)

    must so insure the credit union up to the limits set out in CRED 7A Annex 1 R in respect of any one claim, except that the liability of the insurer may be restricted to the amounts set out in CRED 7A Annex 1 R in respect of the total of the claims made in any one year; and

  3. (3)

    must not provide in relation to any claim for any amount greater than one per cent of the limits on any one claim set out in CRED 7A Annex 1 R to be met by the credit union.

CRED 7A.4.3R

From the losses and liabilities against which a policy complying with CRED 7A.4.2 R must insure there must be excepted all loss suffered or liability incurred by a credit union other than direct pecuniary loss discovered during the currency of the policy of insurance or within 18 months of the date on which either the policy of insurance lapses, or the duties of the officer or employee concerned are terminated, whichever occurs first.

CRED 7A.4.4G
  1. (1)

    1The "aggregate value" in CRED 7A Annex 1 R comprises the shares and deposits (including those held in a CTF) referred to in CRED 7A.3.1 R (1)(a) and (b).

  2. (2)

    The tables in CRED 7A Annex 1 R set out the minimum levels of insurance cover required by a credit union. It is prudent for a credit union to consider whether additional cover:

    1. (a)

      is needed for its own particular circumstances; and

    2. (b)

      should be obtained to cater for actual or projected growth in the "aggregate value" (see paragraph 1 of CRED 7A Annex 1 R) between "relevant dates" (see paragraph 3 of CRED 7A Annex 1 R).