In Case You Possess a Large Amount of Jewellery, Opt for a Standalone Cover

Indians’ love for gold is well known. The country imported 759 tonnes of the yellow metal in 2018. The Household Survey on India’s Citizen Environment & Consumer Economy (ICE 360-Degree survey) had found that 87 per cent of Indian households own gold. Protecting this asset becomes a serious responsibility, given the frequency of incidents, such as burglary and chain snatching in many neighbourhoods.

In recent times, several incidents of bank lockers being robbed have also been reported: UCO Bank branch in Allahabad in April 2018; Kanpur branch of Union Bank of India in February 2018; Navi Mumbai branch of Bank of Baroda in November 2017; and so on. Furthermore, banks are not liable to compensate customers for losses due to such events. Given all these risks, it is prudent to purchase jewellery insurance.

Three types of jewellery covers are available currently. The first is the home insurance policy, which, alongside covering other contents within a home, also covers jewellery. “One issue with this type of cover is that it has a sub-limit, usually of around 25 per cent, for covering jewellery. If you buy home content insurance worth Rs 5 lakh, jewellery worth only

Rs 1.25 lakh will be covered by it,” says Bhawna Sharma, general manager, PolicyX.com. The second type of cover is a standalone jewellery policy. “If the coverage you get for jewellery under the home protection plan is insufficient for your needs, then buy a stand-alone jewellery cover,” says Navin Chandani, chief business development officer, BankBazaar. Here there are no limits on the amount of cover. Both these types of policies will cover you for jewellery kept at home, in the locker, or in transit. The third type of cover available is the recently launched Bank Locker Protector Cover from Iffco Tokio General Insurance. One advantage of this policy is that apart from your jewellery and valuables, you can also insure the important documents you have kept in your locker. “The sum insured will depend on the declaration made by the policyholder. Only in cases where the value of an individual item exceeds Rs 10 lakh, and the total sum insured exceeds Rs 40 lakh, will customers have to get a valuation report from a government-approved valuer,” says Subrata Mondal, executive vice president-underwriting, IFFCO Tokio General Insurance. The premium for this policy is lower.

“Customers can go for a larger sum insured with this policy,” adds Mondal. However, the policy, as its name denotes, has a limitation. “It covers only jewellery stored in bank lockers. The associated risks are lower, which accounts for the lower premium,” says Chandani. One point to remember is that in case of a claim, the insurer will rely on a first information report (FIR) filed by the bank, and not the insured.

Select the right cover based on your need. “If you simply want to be sure that your jewellery is safe in the bank locker, then a bank locker cover will do. But if you want comprehensive coverage for all your high-value jewellery, buy a stand-alone cover. And if jewellery is only a part of the valuables you wish to insure, then a home content insurance would suit you best,” says Chandani.

At the time of buying the cover, make a proper list of all your jewellery, along with identification details, and submit it to the insurer. Valuation should be done by a government-approved valuer. Finally, in the first two types of covers, remember that your insurer will not compensate you if jewellery is robbed from a house that has been left unoccupied for 30 days or more continuously.

Courtesy: Business Standard