Jewellery Insurance: Coverage, Benefits & Claim Process

Ornaments have always been considered a by-product of the different traditions that have been observed in India. No occasion is complete without jewellery. However, jewellery is a significant investment which, if not safeguarded, could easily get stolen. Jewellery insurance in India is a specialized form of insurance that covers the financial loss of precious jewellery and other valuable items, such as gold, diamonds, and other precious stones. If you want to safeguard your precious jewellery from any unwanted incidents, here’s all you need to know about the coverage, benefits and exclusion of this insurance coverage.

What is Jewellery Insurance?

Jewellery insurance typically covers a wide range of jewellery items, including engagement rings, wedding bands, earrings, bracelets, necklaces, and other precious items. Depending on the policy terms, the coverage can also include loss in transit or loss while on display. Additionally, some policies may also cover loss due to damages caused by natural disasters, such as floods and fires. *

Importance of Jewellery Insurance

As Indians prefer to buy jewellery for auspicious occasions or during festivals, this increases the potential risk of jewellery theft. One of the main challenges is the lack of awareness and understanding of the benefits of insurance among jewellery owners. Many people in India who own home insurance  may not be aware of the jewellery cover that is offered with the policy. Additionally, the lack of standardization in the coverage offered by different insurance companies can make it difficult for jewellery owners to compare policies and choose the one that best meets their needs. Another challenge is the lack of data on jewellery loss and theft. This can make it difficult for insurance companies to accurately assess the risk and set premium rates.

Advantages of Buying Jewellery Insurance

1. Protection Against Loss or Theft: Jewellery insurance provides financial coverage for loss or theft, ensuring you don't face significant monetary setbacks.
2. Coverage for Accidental Damage: It protects against accidental damages, such as breakage or scratches, during daily wear or unforeseen incidents.
3. Worldwide Coverage: Many jewellery insurance policies offer global protection, allowing you to wear your valuables confidently while traveling.
4. Customizable Policies: You can tailor the policy to include specific items or higher coverage limits for unique or high-value pieces.
5. Peace of Mind: Knowing your precious jewellery is insured gives peace of mind, reducing worry about potential risks.
6. Affordable Premiums: Jewellery insurance is generally affordable compared to the value of the items being insured, making it cost-effective.
7. Hassle-Free Claim Process: Insurers often provide straightforward claim procedures, enabling quick compensation for losses or damages.
8. Protection During Transit: Coverage extends to jewellery being transported or temporarily stored, safeguarding against mishaps.

Inclusions and Exclusions of Jewellery Insurance

Inclusions 

The following are the inclusions of jewellery insurance:

1. Damages caused to the jewellery due to fire
2. Theft of jewellery from the home
3. Damages caused due to natural calamities

Exclusions

The following are the exclusions:

1. Wear and tear of the jewellery over time
2. Transfer of cover over to new items in exchange for selling your old jewellery
3. Not disclosing actual value or other jewellery
4. Confiscation of your jewellery by authorities

*Standard T&C apply

Jewellery Insurance Claim Process

Inform the Insurer: Notify your insurance provider immediately after the loss, theft, or damage of the insured jewellery. Provide details about the incident.

1. File an FIR: In cases of theft or burglary, file a First Information Report (FIR) at your local police station. A copy of the FIR is required for the claim process.
2. Document the Incident: Collect and submit evidence such as photographs, receipts, or other documents proving ownership and value of the jewellery.
3. Submit the Claim Form: Fill out the insurance company’s claim form accurately, providing all necessary details about the loss or damage.
4. Provide Supporting Documents: Submit documents like the FIR, purchase receipts, valuation certificate, and any other paperwork requested by the insurer.
5. Survey and Assessment: The insurer may appoint a surveyor to assess the loss or damage. Cooperate with the surveyor and provide all required information.
6. Claim Approval: Once the insurer verifies the documents and assessment, they will process the claim and provide compensation as per the policy terms.
7. Receive Compensation: The settlement amount will be transferred to your bank account or provided in another agreed-upon form.

If the insurer is satisfied with the provided information and your claim proves to be genuine, you would be compensated as per the declared value of your jewellery. Also Read: Types of Home Insurance Plans that You Can Choose

Documents Required for Jewellery Insurance Claim Process

1. Duly filled and signed claim form provided by the insurer.
2. Copy of the jewellery insurance policy for coverage verification.
3. Proof of ownership and value, such as purchase receipts.
4. Valuation certificate from an authorized jeweler or valuation expert.
5. FIR filed with the local police in case of theft or burglary.
6. Photographs of the stolen or damaged jewellery, if available.
7. Valid ID proof, such as an Aadhaar card, PAN card, or passport.
8. Bank details for claim settlement, including account number and IFSC code.
9. Incident report explaining the circumstances of the loss or damage.
10. Additional documents like repair estimates or surveyor reports, if requested.

How Does the Future Look?

Despite these challenges, the jewellery insurance market in India is expected to continue to grow in the coming years. The increasing wealth and purchasing power of the Indian population, as well as the government's efforts to increase awareness of this insurance and to encourage more people to purchase coverage, will likely lead to more jewellery owners purchasing it. Additionally, as the Indian economy continues to grow and more people are able to afford to purchase precious jewellery, the demand for this insurance will only continue to increase. Also Read: Does Your Home Insurance Policy Cover Landslides?

Conclusion

Just as you insure your other valuables such as your car or bike from the potential harm that could be caused to it along with the financial harm you may have to endure, it is similarly important to insure the jewellery you have in your house. You can get in touch with your insurance advisor to know more about this general insurance; get to understand its coverage and its overall benefits. Before you purchase the policy, be sure to declare all of your belongings to avoid any hiccups in the future.

FAQs

Can I extend my jewellery insurance?

Yes, most jewellery insurance providers allow you to extend or renew your policy before it expires. You can also increase the coverage or add new pieces to the policy by updating the insured items and paying the adjusted premium.

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

Yes, jewellery insurance is recommended even if your valuables are stored in a bank locker. Insurance covers risks like theft, natural disasters, or damage that may occur during transit to and from the bank.

Does insurance pay for lost jewellery?

Yes, jewellery insurance typically covers lost jewellery, provided the loss is reported promptly and the circumstances align with the policy's terms. Filing a detailed claim with proper documentation is crucial for reimbursement.

How to check jewellery value?

You can check the value of your jewellery by consulting a certified jeweler for an appraisal. Regular appraisals are essential to ensure your insurance coverage matches the current market value of your pieces. *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.