Jewellery Insurance

Having a lot of jewellery locked up at home is not really a safe option anymore. It is very important to shield the jewellery you own as it has many benefits:

1. Jewellery comes to rescue when you are faced with a misfortune and are in sudden dire need of funds.
2. Having an insurance on the jewellery saves you from the trouble of opening a locker with the bank.
3. Bank lockers are not fully safe and there is always a certain amount of risk associated with it.

Jewellery Insurance Covers:

Jeweller Insurance covers theft of jewellery, accidental loss, burglary or damage to jewellery kept in some fixed bank lockers. Some insurance policies offer protection to jewellery worn in person as well. Typically, there is a sub-limit on the jewellery to be insured. However, some policies provide a separate all-risk cover for valuables and jewellery where you can choose a suitable sum assured.

Process of Applying for Jewellery Insurance:

The following factors play an important role in applying for jewellery insurance:

1. Valuation - While applying for jewellery insurance, you are required to present a list of items that will be covered along with their valuation. Valuation certificates of the jewellery can be attained from a reputed jeweller as it may be required for items of high-value.
2. Cost Factor - Premium towards jewellery insurance depends on the total sum assured. However, you can always try to avail discounts from the insurance company.
3. Filing a Claim - In case of loss of the insured jewellery, you must file a claim with the insurance company. The claim form needs to be filed along with the details of the loss and valuation of the jewellery. You are also required to provide a report from the fire department in case of fire and an FIR in case of theft of jewellery. It is also advisable to keep a copy of the insurance policy.
4. All-risk Cover - The insurance should be an 'all risk cover' which provides protection against fire, burglary and other perils. Some covers are 100% insured, while some are on a 'first-loss limits' basis, which implies a portion of the jewellery's value is insured. The insurance company determines the maximum probable value that can be lost in as single incident. This value is termed as the first loss sum insured.

Exclusions:

Jewellery insurance cover excludes loss of jewellery or damage during war, terrorist attack or riot. The cover also excludes any damage to jewellery caused by a wilful act by the proposer, his or her domestic staff, family member or disappearance of items. Insurance companies also do not cover for any loss of jewellery owing to a theft or burglary from a home left unoccupied for 30 days continuously.

List of Companies Providing Jewellery Insurance:

Some of the companies providing jewellery insurance in the country are:

• The New India Assurance Co. Ltd. - Jewellers Block Policy:This policy is exclusively designed for jewellers and diamontaires. The policy terms and conditions differ bases on the Sections under the policy. There are various sections such as Section I, II, III and IV.
• HDFC Ergo - Jewellers Package: HDFC Ergo's Jewellers Package insurance policy provides protection cover for jewellery such as gold and other precious jewellery.

Before finalising on a jewellery insurance policy, check your policy document in detail and understand all the terms and conditions related to the cover. You must also be aware of the exclusions of the policy as it is as important as the cover.