You have the option to get your jewellery covered under standalone jewellery insurance policy, art and valuables insurance, or under a home insurance while getting cover for your home?s contents. Standalone gold jewellery insurance covers losses incurred in a wider range of incidents compared to other insurance policies.
Protection and cover scope
The standalone gold insurance covers your jewellery risks to the amount for which the insurance has been taken. If your gold and jewellery risk has been covered under a home content insurance, there is a sub-limit for such risks within the overall risk cover for all your home contents. For example, your total home content risk is covered up to Rs. 10 lakh and the ceiling for jewellery risk cover is 25%, in which case your risk coverage is worth Rs. 2.5 lakh.
Under content cover, the jewellery is protected from risks such as accidents, theft, fire, damage, etc. while worn or kept in particular lockers or in recommended safe custody. While transferring the insured article, it is covered for losses only if the insured takes necessary care as per the steps prescribed by the insurer under different circumstances.
Similar to most general insurance products, jewellery insurance has a list of exclusions. The insurance company will not cover losses incurred due to war, criminal acts, wilful acts, riots, etc. It also does not cover losses due to depreciation, or thefts from unattended vehicle. Any loss due to repair or restoration is also not covered in most cases.
Conditions of the insurance
Insurance companies require a valuation certificate for insuring jewelleries above a particular value. The ceiling amount of valuation varies from one insurer to another. The valuation certificate can be issued by an authorised jeweller or evaluator. The insurance covers the loss to the extent of the item?s valuation on the insurance date. If the price of jewellery rises as per market value, the insurer is not liable to pay an amount higher than the one mentioned on the valuation certificate.
The insurer also requires the insured to take proper steps to care for and secure his valuable articles. Once an insurer makes full payment for the insured item, it gets the ownership over it.
Things to keep in mind
If you are looking to simply cover your valuables like jewellery or gold, you must compare the benefits between standalone and content insurance. Standalone insurance could give you a higher risk cover and it also includes wider variety of risks in comparison to the content insurance which comes under home insurance.
If you are looking for content insurance then you must evaluate the sub-limit for jewellery and valuable items based on your total cover, and take the insurance for the appropriate amount. It is always better to opt for insurance that provides all-risks cover for valuable items.
If you are looking for insurance for a specific period of, say, three to six months, you should also check the exit clause of your insurance if it allows you a refund in case of an intermediate surrender.
Do check the valuation norms and payment terms of the insurance company. If you are looking to get jewellery insurance for the long term, i.e. more than one year, it is better to get valuations done every year or periodically to keep the price updated as per market rates, especially if there is an increase in the price of items made of gold and silver.
To file a claim after suffering a loss, you can communicate with the insurance company on the provided telephone number or through other eligible media. If an FIR has been lodged, submit its copy along with the claims form and a copy of the insurance policy. The insurance company will initiate the process by performing surveys and procedural enquiry.
Misfortune can strike anyone, anytime. But insurance can protect you in such situations and recover your financial losses. So if you are looking forward to get protection from risks associated with owning gold and jewellery, select the appropriate insurance soon.
The author is CEO, BankBazaar.com.