Gold Insurance

With more than 24,000 tonnes of gold in their possession, there is no doubt that Indians love gold. Considering how valuable and precious gold is, it is essential we put in some extra effort to safeguard it from theft and damage. People in general, including jewellery shop owners, are always worried about the safety of the jewelry. There is always the risk of the jewellery being lost or robbed. A jewelryurance can offer protection for such losses. The jewellery and ornaments not only have a high monetary value but also sentimental value since many of them are passed down to generations as a family heirloom. This makes them truly invaluable! And from a financial point of view, they are considered great investments.

It only makes sense that you secure and protect your jewellery in the best possible way. And we do that. It is always a good idea to be extra cautious with the jewelry, especially when you are wearing them. However, there can be a lot of scenarios and unforeseen circumstances that are beyond your control. That said, leaving your prized possessions to the hands of fate is not really a choice. The answer to this dilemma is insurance!

Factors that decide the premium of the insurance

The amount depends upon multiple factors that influence the premium cost as well as the coverage that comes with it. Here is a look at the same:

• Number of items: First, you need to list the number of jewellery items you need protection for.

• Valuation: Once you have made the list, find out the market price of the items to understand exactly what amount of money can get insured. Valuation certificates of the jewellery can be obtained from any noted jeweler. Your premium largely depends on the total sum assured.

• Research and compare: The next obvious step is to do some research about companies offering standalone jewellery insurance or provision to cover it with home insurance policy and get quotes from different insurers. Do a thorough study of the offers by reading the terms and conditions. You should opt for one that provides greater coverage with smaller premiums and less exclusion. Always keep an eye on the claim settlement ratio of the company and discounts offered by them, while doing your research.

• The extent of coverage: To reiterate, only an ‘All-Risk Cover’ will provide coverage against most of the probable perils. Some of these insurances provide 100% coverage i.e., you can get up to 100% of the cost of the jewellery items insured. The regular insurances cover only a portion of the jewelry’s value.

Feature & Benefits of Gold insurance are listed below :

• Saves you from the process of opening a bank locker, which comes with high risk and very often, high fees and charges for storing precious items.
• You don’t have to take your jewellery in and out of a locker every time you wish to wear it. You can keep it at your home.
• Insurance cover to the jewellery items is a great safeguard that can rescue a family or a household in the event of any misfortune when jewellery needs to be converted into cash for funds
• Even the bank locker insurance policies do not provide comprehensive coverage. But jewellery insurance covers all such aspects with rider options available to provide all-risk cover
• jewellery stock in transit, stock in exhibitions, and stocks in custody are covered under the jeweler’s package offered by some private companies in India
• Getting your jewellery covered is absolutely essential for those who recently got married and have a lot of ornaments at home or people who travel a lot, leaving their homes vulnerable to theft.

Once you have bought the insurance, it is important to know the procedure to make claims, in case the need arises.

• Make sure to report the incident to the insurance company from whom the jewellery insurance policy is purchased. One must use the toll-free number, if provided, to report the incident immediately.
• The incident must also be reported to the relationship executive tagged to the policyholder and report in writing over an e-mail address provided by the company.
• Usually, the insurance company then appoints a surveyor. The surveyor makes an inspection of the premises and investigates the incident reported
• In case the damage or loss is done due to fire or theft, relevant documents like an FIR or report from the fire department must be provided to the surveyor.
• A final assessment report is made by the surveyor to ascertain losses and the compensation amount in the form of sum assured.
• A copy of the jewellery insurance policy must be shared with the insurance company or its team whenever requested.
• After the internal process for claim settlement is complete, the insurance company then provides compensation in the form of sum assured which could be any of the following values:
  • Reinstatement Value of the jewellery item
  • Market Value of the jewellery item
  • Replacement Value of the jewellery item

Jewellery insurance covers

• Burglary and theft of jewellery and other precious items, including jewellery kept in some specified bank lockers.
• Protection against fire, flood, earthquake, and other natural calamities
• jewellery and valuables against accident or misfortune
• Chain snatching​
• Riot, Strike, and Malicious Damage

WHAT WE DO NOT COVER?

• Damage occurred during a war, terrorist attack, or riot.
• Damage is caused to jewellery by a deliberate attempt by the person who asks for insurance cover, his or her domestic staff, or family member.
• Burglary or theft in your home while it is left unoccupied for 30 days continuously Jewellery not declared while buying the insurance will not be covered
• Willful destruction
• The willful act or gross negligence
• Loss of and/or damage to the property insured from any process of cleaning, repairing, or restoring.
• Depreciation gradual deterioration, wear and tear, moth, vermin, and mildew.
• Loss or damage arising out of territorial limits specified in the schedule of the policy document
• If the insured items are replaced i.e., if you sell your old items for new ones, then the insurance policy does not get automatically transferred to the new items. The insurance protects only those items that are listed at the time of taking the insurance
• If your jewellery is confiscated due to default in EMIs, then the insurance company won’t take care of your loss

FAQs

Q1.Can I extend my jewellery insurance?

Q2. I have kept my jewellery in a bank locker. Do I still need jewellery insurance?

Q3. Can I buy this policy as an add-on with my home insurance?