Jewellery Insurance: Coverage, Claim & Exclusions

Updated: 22-01-2024 09:58:06 AM

Jewellery is a valuable asset. People in general take utmost care to protect their jewellery. One should know that putting the jewellery in bank lockers does not guarantee its safety, with the RBI saying, “Banks have no liability for loss of valuables in lockers.” This is when you can understand the importance of jewellery insurance.

 

What is Jewellery Insurance?

People in general, including jewellery shop owners, are always worried about the safety of the jewellery. There is always the risk of the jewellery being lost or robbed. A jewellery insurance can offer protection for such losses.

People can opt for the relevant insurance policy provided by various insurance companies in India. Jewellery items stored at home are usually covered under Household Insurance Policy. However, there is also the option of standalone jewellery insurance, in case one needs it exclusively for jewellery. One can also opt for this insurance to protect the precious jewellery kept in bank lockers.

What all Jewellery Insurance Covers?

The kind of coverage under jewellery insurance offered by various national and private insurance companies in India is different for each company. Let us understand various situations under which you can get the protection:

• Individual home owners or households that have stored ancestral jewellery items or accumulated through their hard work is insured in the Home Insurance Policy under all-risk cover for jewellery in case of theft, burglary, and break-ins, etc.
• Various jewellery stocks insured, including in-premise stock, stock in custody, transit, exhibitions, etc. are included in the comprehensive jewellery insurance package by various companies
• Additional coverage for protection glass, building and assets, electronic equipment, money in transit or at premise etc. are also available under rider options provided in jewellery insurance
• Loss or damage arising in any event including public liability at the premise, coverage for workmen compensation, or any consequential losses (fire) are also offered under various options with an additional premium cost

In case of standalone jewellery insurance, some of the cases covered include:

• Fire, flood, earthquake, lightning
• Burglary and/or house-breaking
• Chain-snatching
• Theft
• Accidental loss
• Damage to jewellery stored in bank lockers

Jewellery Insurance Claim Process

Once you have bought the insurance, it is important to know the procedure to make claims, in case the need arises. Let us look at some steps to be followed for settling the claim for jewellery insurance. The policyholders could be household owners or jewellers who are in the trade business of buying and selling jewellery.

•  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. This is then documented in the report.
• The policyholder must produce all facts and documents or render any other support that is requested by the Surveyor for a fair investigation and submit the Claim Form for settlement.
• 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.
• After a thorough investigation about the incident and collection of all facts and documents, 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.
• Some private companies provide online facility to check an individual claim status updated by the insurance company on a regular basis.
• 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

Documents Required for Claim Process 

It is important to provide the required documents to the insurance company in order to make claims and get the return without any hassle. Some of the documents are claimform, policy papers, copy of FIR in case of theft or loss.

Cases Where you Can’t Claim Jewellery Insurance (Exclusions)

Below are certain exclusions that are not covered under jewellery insurance. One should be careful about these points before purchasing the insurance, though they vary from company to company.

• Deliberate acts resulting in damage or loss of a jewellery item
• Loss or damage arising out of territorial limits specified in the schedule of the policy document
• Damage to jewellery items due to explosion in boilers, natural heating or spontaneous combustion
• Damage to  jewellery due to forest fire, war, nuclear strike or terrorism
• Loss or damage to jewellery due to cleaning, repairing or any other similar processes

Companies offering Jewellery Insurance in India

It is best to be safe than to be sorry. Thus, it makes sense to go jewellery insurance. Some of the companies in  India offering jewellery insurance are:

• HDFC Ergo
• Reliance General Insurance
• Royal Sundaram
• Oriental  Insurance

Advantages of Buying Jewellery Insurance 

Instead of worrying all the time about protecting the precious jewellery, you can opt for jewellery insurance either as a standalone one or under the Household Policy or Home Insurance offered by various insurance companies in India. Let us go through some benefits under the jewellery Insurance:

• Insurance cover to the jewelry items is a great safeguard that can rescue a family or a household in the event of any misfortune when jewelry needs to be converted into cash for funds
• Shifting the jewellery from home storage to bank lockers is an option, but it comes with a cost and and the bank is not responsible in case of its loss. Such troubles can be avoided by purchasing insurance policies for jewellery items
• Even the bank locker insurance policies do not provide comprehensive coverage. But a jewellery insurance covers all such aspects with rider options available to provide all-risk cover
• Flexible options help choose suitable sum assured for the loss or damage under the policy
• Jewellers can enjoy benefits like getting protection against any loss or damage to the jewellery stored in stock in the insured premises including Goods in Trust or on Commission
• Jewellery stock in transit, stock in exhibitions, and stocks in custody are covered under the jewellers package offered by some private companies in India

Suggested Read: Shopkeeper Insurance: Coverage, Claim & Exclusions

FAQs

Q1. Can I extend my jewellery insurance?

Yes, some providers do give you the option of upgrading the scope of cover. You can pay additional premium and get coverage for acts like terrorism, etc.

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

Earlier, bank lockers provided safety along with interest. Now, they no longer do the same. If any mishap occurs like fire or any other damage, banks are not liable. So yes, you should get yourself a jewellery insurance.

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

Yes, you can do so.