Jewellery Insurance: Features and Claim Process

In InsuranceSamadhan.com’s A-Z Blog series on Insurance topics, we try to provide all vital information related to the Insurance sector and demystify certain myths related to the sector. In today’s blog, we are sharing detailed information regarding – Jewellery Insurance – and everything that one needs to know.

Indians have a habit of creating wealth through jewellery. Ladies keep their jewellery at home and in bank lockers. It is said that 30% of household wealth remains in gold, precious stones and jewellery but this wealth remains at risk of loss, theft, and robbery. Jewellery insurance can offer some protection against such losses.

Although jewellery contents are also covered under house insurance. But if wealth is more, then it is advised to opt for specific jewellery insurance. Moreover, jewellery kept in bank lockers are at risk and should be covered through jewellery insurance. Compensation is offered in form of replacement value or market value, whichever is lower. Some losses caused due to negligence and war-like situations are not covered.

Jewellery Insurance Features:

Almost all general insurance companies offer jewellery insurance and have common features as detailed below:

• Cover the financial loss caused due to loss of declared jewellery by theft, burglary and robbery. This covers the risk of loss within the insured premises.
• There is a specific policy called jewellery block insurance which covers the risks of jewellery shop owners like stock in transit, stocks displayed in exhibitions and stocks at premises. It can also cover valuables like precious stones, watches, antiques, pieces of art etc.
• Specific perils can also be added. By paying an incremental premium, jewellery insurance can add perils including fire, flood, earthquake, lightning, burglary and/or house-breaking, chain-snatching, theft, accidental loss and damage to jewellery stored in bank lockers.

Jewellery Insurance Claim Process:

Given below are the steps which need to be followed to get a claim:

1. Report the loss within 24 hours to the insurer either in writing or on phone.
2. A surveyor would inspect and submit the loss report. You can demand to have a copy of the report and raise an objection in writing if you do not agree with the surveyor’s report.
3. It is necessary to produce all facts and figures. Claim approval will be based on the surveyor report and give as much information supported by documents.
4. As valuables are lost, hence police FIR is necessary. If it includes fire then a report by the fire department will also be needed.
5. You must keep all records of jewellery. Also, keep a copy of the policy document and share it with the surveyor and insurer.

Click here to know more about jewellery insurance

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