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What is Jewelry Insurance? Is It So Important in The Covid World?

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Published on April 8, 2021. EST READ TIME: 2 minutes

This form of insurance provides coverage in the event of loss, theft or damage to an individual’s jewelry. Once the insured individual files a claim with the insurance company, the latter reimburses them with a cash payment. Sometimes, the insurance company might choose to pay the insured to replace their jewelry. If an individual is in possession of such assets, it is recommended that they avail of this form of insurance. This is because most homeowner’s insurance and renter insurance policies do not account for damage or loss of jewelry. In cases of theft, they more often than not only provided the insured with a limited payment.   Like other forms of insurance, jewelry insurance too requires a periodic premium to be paid in order to be eligible for coverage.

Indians have always had a special fascination with gold and have always strived to own and collect it. As of 2019, Indian households were said to hold between 24,000 and 25,000 tonnes of gold, making India the largest holder of the metal. This gold could be held in the form of jewelry, bars, coins and so on. As per the directive of Central Board of Direct Taxes, married Indian women have the right to own up to 500grams of gold while unmarried women can own up to 250grams. Meanwhile men can own up to 100 grams of gold. The fact that this has been specified as a part of India’s tax laws further highlights the value assigned to gold in the country.

Safekeeping varied forms of jewelry is not an inexpensive enterprise. Setting up a locker at a financial institution can be financially draining. Individuals might resort to storing their valuable assets in their own homes in order to skip out on incurring this recurrent expense. This can be potentially dangerous in the event that their home is subject to a burglary or experiences any form of damage and the jewelry gets spoilt or lost in the process. If a homeowner doesn’t have their jewelry insured, they can experience serious losses, the cost of which, they might not be able to recover from.

With the onset of the Coronavirus pandemic, several individuals, businesses and varied enterprises have suffered. In 2020, over 10.6 million Indians experienced job losses across a variety of sectors. The loss of jobs and poor state of the economy have meant that a larger percentage of people have remained strapped for cash. While the Coronavirus imposed restrictions have eased up, the economy is yet to fully recover from this setback. Cash deprived individuals are so desperate that they aren’t afraid of committing crimes. Faced with unemployment, a larger percentage of individuals have taken to committing criminal activities in order to make ends meet. Burglaries and household theft have increased as a result. Jewelry makes for a relatively easy steal as it can be carted out of a home without arising suspicion since it’s not heavy or large like a television. Moreover, not every family has a safe in their home where they store their jewelry and valuable assets. Most people tend to store such goods in their cupboards whose locks can be picked relatively easily. Moreover, once said jewelry has been pinched, it’s not too hard to pawn it off and get cash in exchange which is the need of the hour for such criminals.

Conclusion

Individuals possessing jewelry must get it insured, such that they can protect themselves against high costs incurred in the event of it being damaged or getting lost. Not all jewelry is directly replaceable, so owners ought to consider and understand their insurance policies rules on appreciation as well as replacement.  For particularly expensive jewelry, owners should consider getting it appraised.

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

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