• Gold jewellery carries significant cultural importance and monetary worth in India. It is crucial to protect these valuable assets from unexpected incidents such as theft, loss, or damage. This is where Gold Jewellery Insurance comes into effect, providing reassurance to owners. In India, this specific insurance delivers coverage uniquely designed to protect gold ornaments and jewellery items.

• With the increasing occurrences of theft and burglary, acquiring gold jewellery insurance has become essential for individuals and families. Recognizing the necessity of safeguarding valuable belongings, insurance companies in India present extensive plans with diverse coverage options and premiums, making them available to everyone. This jewellery insurance not only offers financial security but also helps maintain treasured family heirlooms and investments in gold jewellery.

What does Gold Jewellery Insurance Cover?

Given their financial significance, it is logical to protect them from theft, burglary, and accidental loss. While jewellery insurance is generally offered separately by insurers, it is often included in a home insurance policy.

Gold jewellery insurance typically encompasses the following:
• Protection from loss due to fire:
If your gold jewellery suffers damage or is destroyed in a fire incident, the insurance will reimburse you for the loss.
• Protection from theft and burglary:
If your gold jewellery is taken or if there is a burglary at your residence, the insurance will cover the cost to replace the stolen items.
• Protection from natural calamities:
If your gold jewellery is affected or lost due to natural disasters such as floods or earthquakes, the insurance will assist in covering the expenses for replacement or repairs.
• Items kept at home:
Whether you store your gold jewellery at home or in a safe deposit box, the insurance will safeguard them from the aforementioned risks, ensuring that your valuable items remain secure.

What is not Covered by Gold Jewellery Insurance?

• Wear and Tear:
This includes damage resulting from regular wear and tear, negligent driving, or damage incurred during cleaning, servicing, or repairs.
• Wilful Negligence:
This includes damages caused by the owner’s intentional neglect since the item is insured.
• Sale:
The insurance coverage does not automatically apply to new items if the insured products are replaced, meaning if you sell your old items for new ones. Only the specifically mentioned items are covered at the time of obtaining insurance.
• Non-disclosure:
It is crucial for the insured to provide accurate and clear information about the product when the policy is obtained. If any relevant information is left out or intentionally hidden, the insurer will not cover the claim.
• Replacement:
If you replace the covered products—that is, sell and substitute your old items with new ones—the insurance coverage does not automatically extend to the new items. Only the items that are specified during the insurance application process are covered.
• Confiscation:
If your EMIs are not paid promptly, the insurance company will not be responsible for the confiscation of your jewellery.

Advantages of Gold Jewellery Insurance Plans

• Financial Protection:
Provides protection against financial setbacks stemming from theft, burglary, fire mishaps, or natural disasters, ensuring you don’t incur the full expense of replacing or repairing your gold jewellery.
• Peace of Mind:
Provides reassurance knowing that your precious gold jewellery is protected against unexpected occurrences, enabling you to wear and appreciate your jewellery without concern for possible dangers.
• Customised Coverage:
Personalized insurance plans enable you to select coverage options aligned with your individual requirements, guaranteeing that you only pay for the security you need for your gold jewellery.
• Affordable Premiums:
Insurance companies offer competitive rates, making it possible for people from diverse financial situations to secure comprehensive coverage for their gold jewellery.

Procedure to obtain jewellery insurance in India

Although the following steps are not fixed, they can assist you in protecting your valuable items.
Step 1: Obtaining valuation certificate
Compile a list of all items that require coverage and have them appraised. It is advisable to obtain a valuation certificate from a reputable and reliable jeweller.
Step 2: Evaluating different insurance policies
While some insurance policies cover only a portion of the value of your valuables (as assessed by the insurance provider) and operate on a “first-loss limits” basis, you should always opt for an “all-risk” or 100% coverage since it also protects against theft and fire. The insurer calculates the maximum potential value that could be lost in a single event, referred to as the “first loss sum insured. ” Additionally, you may look for discounts, but the cost is based on the total insured amount.

Filing a Gold Insurance Claim

The procedure for submitting a gold insurance claim is outlined as follows:
• A claim must be filed if your insured jewellery is lost or damaged in any manner.
• In case of a loss, all pertinent information regarding the jewellery’s value must be provided.
• For scenarios such as theft and fire, necessary documentation, including an FIR, will need to be submitted.

Conclusion

It is just as important to insure your gold jewellery as it is to protect other belongings like your car or bike against possible damage and financial loss. Therefore, it is recommended to consider gold jewellery insurance from a trusted insurer like HDFC ERGO.

Disclaimer: The information above is intended for illustrative purposes only. For further information, please consult the policy wording and prospectus before making a purchase decision.