Hyderabad: It is commonly believed that if jewellery has to be kept safe, then it has to be kept in a bank locker. But what when you are wearing it, or what when you don’t have a locker? How will you protect your precious assets then?
Jewellery insurance is an answer to that. Customers can now insure their ornaments with the help of policies specifically designed for gold jewellery articles. So next time when you lose any jewellery piece at a wedding ceremony or fall victim to chain-snatching, you can recover most of your losses through a jewellery insurance policy.
Let’s take a detailed look on what are the key features of these policies and how they can be bought.
Who sells jewellery insurance policies?
Major insurers like Reliance Home Insurance, HDFC Ergo etc offer jewellery insurance policies. Earlier this week, Muthoot Finance also launched a gold jewellery insurance scheme in partnership with Bajaj Allianz General Insurance.
Is jewellery covered under home insurance?
Generally, jewellery and gold articles are covered under only comprehensive home insurance schemes. The basic home insurance plans do not necessarily insure contents like jewellery. They only protect the basic structure of the house.
So, if you own a lot of ornaments or travel a lot with them, buying a stand-alone jewellery insurance scheme would be advisable.
What kind of items are covered?
Jewellery insurance can cover articles of personal adornment containing gemstones, silver, gold, platinum or other precious metals. Some policies also include valuables like crystal ware, expensive wristwatches, silver articles or gold in forms other than jewellery like coins or any other structure.
What kind of risks are covered by these policies?
Jewellery insurance policies can cover your possessions against risks like natural calamities, any damage to jewellery pieces due to fire, losses due to burglary and theft and loss-in-transit.
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Which risks are not included?
Damage due to normal wear and tear, reckless conduct while cleaning, servicing or repairing, and damages caused due to wilful negligence are not covered. Secondly, if the insured items are replaced with new items, i.e., if you sell your old items for new ones, then the insurance policy does not get automatically transferred to the new items.
Also, if your jewellery is confiscated due to default in EMIs or regulatory bodies, then the insurance company won’t take care of the loss.
What is the premium cost of these insurance policies?
Though the cost varies from insurer to insurer depending on factors like the total sum insured, tenure, number of items insured and extent of coverage, generally the annual premium is in the range of around 1% of the jewellery value.
What documents do you need to buy jewellery insurance?
Customers first need to find out the market price of their jewellery items to get an idea of the total sum assured. For this, valuation certificates of the jewellery can be obtained from any noted jeweller. Then, along with that, insurers may ask for KYC documents like Aadhaar, PAN etc.
What other factors should customers keep in mind while buying jewellery insurance?
Customers should always compare all the available standalone jewellery insurance policies and get quotes from different insurers. Read the terms and conditions carefully and choose the policy that provides greater coverage with smaller premiums and less exclusions.
Also, keep an eye on the insurer’s claim settlement ratio and if any discounts are being offered.
Also, it is advisable to buy only an ‘All-Risk Cover’ that will provide coverage against most of the probable perils. Also, look for 100% coverage i.e., you can get up to 100% of the cost of the jewellery items insured. Mostly, the regular insurances cover only a portion of the jewellery’s value.
What is the claim procedure?
To make a claim, contact your insurance provider via a call, email, or fax and inform about the damage caused or loss of the items. Though not mandatory, it is advisable to take images and videos of the damage as evidence. Keep all supporting documents like policy papers, ID proofs, First Information Report (FIR) copy, rent agreement, fire brigade report, invoices of owned belongings, etc. ready. The insurance company will appoint a surveyor to assess the damage. After the claim is validated, customers are offered a suitable reimbursement.
