Gold Jewellary Insurance: The Safe and Secured Way To Keep Your Valuables Protected

Posted on: Apr 5, 2024 | 3 mins | Written by: HDFC ERGO Team

Gold Jewellary Insurance: The Safe and Secured Way To Keep Your Valuables Protected

Gold jewellery holds immense cultural significance and monetary value in India. Protecting these precious assets against unforeseen events like theft, loss, or damage is essential. This is where Gold Jewellery Insurance comes into play, offering peace of mind to owners. In India, this specialised insurance provides coverage specifically tailored to safeguard gold ornaments and jewellery pieces.

With the rising instances of theft and burglary, having gold jewellery insurance has become imperative for individuals and families. Understanding the importance of securing one's valuable possessions, insurance providers in India offer comprehensive plans with varying coverage options and premiums, making them accessible to all. This jewellery insurance not only provides financial protection but also ensures the preservation of cherished family heirlooms and investments in the form of gold jewellery.

What does Gold Jewellery Insurance Cover?

Considering their financial value, it makes sense to safeguard them against theft, burglary, and accidental loss. Although jewellery insurance is offered separately by insurance companies, it is typically covered by a home insurance policy.

Gold jewellery insurance would include the following:

• Safeguard from loss due to fire:

If your gold jewellery gets damaged or destroyed in a fire accident, the insurance will compensate you for the loss.

• Safeguard from theft and burglary:

If your gold jewellery is stolen or if there's a burglary at your home, the insurance will provide coverage to replace the stolen items.

• Safeguard from natural calamities:

If your gold jewellery is damaged or lost due to natural disasters like floods or earthquakes, the insurance will help cover the costs of replacing or repairing them.

• Items kept at home:

Whether you keep your gold jewellery at home or in a safe deposit box, the insurance will protect them from the risks mentioned above, ensuring your valuable possessions are safe and secure.

What is not Covered by Gold Jewellery Insurance?

• Wear and Tear:

This includes damage from regular wear and tear, careless driving, or damage from cleaning, servicing, or repairing.

• Wilful Negligence:

This includes damages brought about by the owners' deliberate neglect since the item is insured.

• Sale:

The insurance coverage does not instantly transfer to the new items if the insured products are replaced, i.e., if you sell your old items for new ones. Only the explicitly stated things are covered when you take out insurance.

• Non-disclosure:

It is imperative that the insured furnish accurate and clear information regarding the product at the time of policy takeout. Should any pertinent information be omitted or purposefully concealed, the insurer will not pay for it.

• Replacement:

In the event that you replace the covered products—that is, sell and replace your old items with new ones—the insurance coverage does not immediately carry over to the new items. Only the things that are specified while obtaining insurance are covered by the policy.

• Confiscation:

If your EMIs are not paid on time, the insurance company will not cover the confiscation of your jewellery.

Advantages of Gold Jewellery Insurance Plans

• Financial Protection:

Provides coverage against financial losses resulting from theft, burglary, fire accidents, or natural calamities, ensuring you don't bear the entire cost of replacing or repairing your gold jewellery.

• Peace of Mind:

Offers peace of mind knowing that your valuable gold jewellery is safeguarded against unforeseen events, allowing you to wear and enjoy your jewellery without worrying about potential risks.

• Customised Coverage:

Tailored insurance plans allow you to choose coverage options based on your specific needs, ensuring that you only pay for the protection you require for your gold jewellery.

• Affordable Premiums:

Insurance providers offer competitive premiums, making it accessible for individuals from various financial backgrounds to afford comprehensive coverage for their gold jewellery.

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

Make a list of everything that needs to be covered and have it valued. It is possible to obtain a valuation certificate from a reputable and trustworthy jeweller.

Step 2: Evaluating different insurance policies

While some insurance policies only cover a fraction of the value of your valuables (as assessed by the insurance company) and work on a "first-loss limits" basis, you should always choose an "all-risk" or 100% cover as it also offers protection against theft and fire. The insurance company determines the highest probable value that can be lost in a single incident, which is known as the "first loss sum insured." Additionally, you can search for reductions, but the price is determined by the total amount insured.

Filing a Gold Insurance Claim

The process of filing a gold insurance claim is as follows:

• You will need to submit a claim if your covered jewellery is lost or damaged in any way.

• In the event of a loss, you will need to provide all relevant information about the jewellery's value.

• For instances like theft and fire, you will have to present the required paperwork, such as an FIR.

Conclusion

It is equally crucial to protect your gold jewellery you have, just as you would insure other possessions like your car or bike against potential damage as well as potential financial hardship. Hence, it is advisable to opt for gold jewellery insurance from a reputed insurer like HDFC ERGO.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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