Jewelry Insurance: Jewelry is a valuable possession in every household, especially among women who often possess numerous pieces of jewelry. The fear of whether these valuables are secure at home persists, leading some individuals to store them in bank lockers. Even if theft occurs at home, the ornaments stored in bank lockers remain safe. However, claiming compensation for any losses incurred due to damage suffered while in the bank can be challenging. Moreover, not everyone finds it convenient to store jewelry in bank lockers. Hence, insuring jewelry can protect against losses while keeping them at home.
Benefits of Jewelry Insurance
Insuring your jewelry, especially if you own a significant number of pieces, can be a prudent decision. By insuring your jewelry, you eliminate the need to keep them separately in bank lockers and worry about their safety.
Advantages of Jewelry Insurance
- In case of theft, fire, or natural disasters such as floods or earthquakes, insurance covers the losses incurred by jewelry.
- Some insurance companies also provide coverage for stolen jewelry. However, filing an FIR and providing valid proof of theft is necessary.
- Insurance companies do not take responsibility for losses incurred due to a family member’s actions.
- Delaying the notification of theft for more than a month or any such unreasonable delay can absolve the insurance company from compensating the claim.
- Coverage may not be provided if jewelry gets damaged during cleaning or breaks.
- If a piece of jewelry is lost, immediately inform the insurance provider. If the jewelry is not recovered due to fire, inform the fire department. Providing the correct value of the jewelry is essential when making a claim.
Calculation of Premium
In some cases, insurance companies assess the premium based on the market value of gold, while in others, coverage is provided at a declared insurance value. However, premiums may be higher in the latter case. The premium for gold insurance depends on the amount of gold insured. For instance, for jewelry worth Rs. 10 lakh, the estimated premium is around Rs. 1,000 per month.
Keeping Receipts Secure
When purchasing jewelry, it’s essential to keep the receipt safe. Some insurance companies demand proof of purchase when settling claims for lost or damaged jewelry.
Additional Rules
- Insurance does not cover damage or wear and tear over time.
- Insurance companies do not replace old jewelry with new ones; instead, new jewelry must be insured separately.
- Failure to disclose the actual value of jewelry or other relevant details can lead to a denial of coverage.
Insuring jewelry provides financial protection and peace of mind against unforeseen circumstances, making it a wise investment for anyone with valuable ornaments.