Gold jewellery insurance in India for your precious possessions

With more than 24,000 tonnes of gold in their possession, there is no doubt that Indians love gold. Considering how valuable and precious gold is, it is essential we put in some extra effort to safeguard it from theft and damage. While people generally think about home, car, life, or health when it comes to insurance, did you know you can also insure your precious gold jewellery?

What does jewellery insurance cover?

Jewellery insurance covers accidental loss, damage, burglary and theft of jewellery and other precious items, including jewellery kept in some specified bank lockers. Some policies also cover jewellery that is currently being worn i.e. gold that is ‘on one’s person’.

Options for jewellery insurance cover:

• Under home insurance policy:

  You can opt for a ‘contents cover’ under home insurance policy that includes valuables and jewellery protection. There is usually a sub-limit for risks in this policy. For example, if the maximum cover is 25% of the total sum insured for contents and your total home content risk is covered up to INR 10 lakh, jewellery worth INR 2.5 lakh will be covered.

• Standalone jewellery insurance policy:

  This type of insurance covers losses incurred in a wider range of incidents as against the other insurance policies. It covers your jewellery risks to the amount for which the insurance has been taken.

Advantages of gold jewellery insurance plans:

1. Saves you from the process of opening a bank locker, which come with high risk and very often, high fees and charges for storing precious items.
2. You don’t have to take your jewellery in and out of a locker every time you wish to wear it. You can keep it at your home.

Procedure to obtain jewellery insurance in India:

While the steps below are not part of a rigid process, they can help you safeguard your precious possessions.

• Step 1: Obtaining valuation certificate:

  Prepare a list of items to be covered and get their valuation done. You can procure a valuation certificate from a trusted and reputed jeweller.

• Step 2: Evaluating different insurance policies:

  While some insurance policies operate on a ‘first-loss limits’ basis and only insure a portion of your jewellery’s value (determined by the insurance company), you should always opt for a 100% cover or an ‘all risk’ cover as it provides protection against fire and theft too. ‘First loss sum insured’ is the maximum probable value that can be lost in a single incident and is determined by the insurance company. Also, the premium depends on the total sum insured but you can look for discounts.

What is not covered in the gold jewellery insurance?

1. Damage occurred during a war, terrorist attack or riot.
2. Damage caused to jewellery by a deliberate attempt by the person who asks for insurance cover, his or her domestic staff, family member.
3. Burglary or theft in your home while it is left unoccupied for 30 days continuously.

Filing a gold insurance claim

• In case of any loss or damage to your insured jewellery, you’ll have to file a claim.
• You’ll need to fill in all details of the loss and the value of the jewellery in case.
• You’ll need to provide necessary documents for incidents such as fire and theft, for example the report from the fire department or an FIR.

Your gold jewellery can be your saviour during any financial crisis and its sentimental value is priceless. Hence, it advisable to get it insured.

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