Gold Jewellery Insurance in India: Coverage & Benefits
Gold Jewellery Insurance in India: Coverage & Benefits

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 India 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?
While your jewellery insurance covers a wide range of incidents, it will not cover damage or loss due to specific conditions. Some of the common scenarios for which jewellery insurance coverage is not provided include the following:
• 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
Your home insurance policy should have a gold jewellery cover too. When getting your property insured, it is advisable to insure the other valuables in your house too. Therefore, some of the key advantages of buying a gold jewellery insurance are as follows:
• 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
Whether your gold jewellery is lost or stolen, you must file a claim to receive financial compensation for it. It is advisable to inform the insurance company as soon as possible for prompt action. If you want the claim to be quickly settled, make sure to notify the insurance company soon with all the necessary documents.
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.
Documents Required for Insurance Claim Process
Submitting the right documents is extremely crucial for an easy gold jewellery insurance India claim process. The documents that you must submit are:
1. Filled and signed claims form.
2. Copy of your original jewellery insurance policy.
3. FIR if you are filing a claim due to theft or burglary.
4. Fire department report if the claim is due to fire.
5. Video and photographic evidence of the damage
6. ID Proof or KYC documents.
7. Certificate of valuation from an authorised jeweller.
8. Bank details for final claim settlement, such as account number and IFSC number.
9. Incident report discussing the cause of damage
The insurance company may ask you to submit additional documents, too. Before filing the gold jewellery insurance claim, you must arrange the documents mentioned above. Also, you can discuss with the insurance company about what additional documents will be needed.
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. Even if your jewellery is stored in the bank, it is a smart move to get it insured, especially if the value is more than the liability offered by the bank. Hence, it is advisable to opt for gold jewellery insurance from a reputed insurer like HDFC ERGO.
FAQs
1. I have kept my jewellery in a bank locker. Do I still need jewellery insurance?
While not mandatory, it is advisable to get jewellery insurance even if you have kept it in a bank locker. The insurance ensures that your jewellery has full protection. Moreover, insurance would be beneficial if the value of the items kept in the locker is more than the bank's liability.
2. Does insurance pay for lost jewellery?
Yes, you can claim compensation from your gold jewellery insurance for lost jewellery following the terms and conditions of your insurance. However, you must report the loss promptly. If you are claiming compensation, you must submit the correct documents.
3. Is jewellery insurance worth it?
Yes, jewellery insurance is worth it since you get complete protection against theft or loss of the jewellery. The insurance policy premium is less, but it offers an additional level of security for your valuables.
4. Is jewellery insurance yearly?
Yes, jewellery insurance is issued every year. The premium must be paid upfront, and then the policy will cover your valuable jewellery for a year. As the term expires, you can renew your gold jewellery insurance by paying the premium.
5. How to check jewellery value?
You can take your jewellery to a jeweller to understand what its actual value is. It is important to consider regular appraisals for the jewellery price to ensure the coverage aligns with the current market value of your valuables.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
RELATED ARTICLES
All You Need to Know About Jewellery Insurance Policies
Jewellery Insurance Vs Bank Lockers: What Would You ...
Can You Claim Lost Jewellery in Insurance?
What is the purpose of jewellery insurance?