Jewellery insurance is usually an add-on to the house insurance policy Image Credit: GN Archives

Dubai: An Indian woman on a holiday back home recently lost a diamond bracelet after it fell off her hand at a wedding. Another family, who keeps part of their jewellery at home and part of it in a bank locker in Dubai, constantly fear for the safety of their valuables. There are many others who find themselves in similar situations, but few are willing to get their valuables covered.

“If you believe you have valuables such as jewellery or expensive watches which you carry often while traveling, or keep in the house safe, it is recommended you cover them with a jewellery insurance. Even if they are kept in a bank locker, it is better to cover them under jewellery insurance as banks have limited liability per locker,” said Sanjay Tolani, managing director and CEO of Goodwill Insurance.

According to him, jewellery insurance is like an airbag in the car. “When was the last time you needed it? But you would always want to have one, just in case.”

Add-on cover

He said jewellery insurance is usually an add-on to the house insurance policy. “A house insurance policy covers against fire, theft, liability and damage; with this, the insurance company has an add-on rider of jewellery or valuables insurance which would cover gold, diamond jewellery and watches. This cover can also be extended when you travel out of your country of residence and carry these valuables.”

Alison Fenech, head of general insurance at Nexus Insurance Brokers, said: “Jewellery can be more than just an accessory. Our emotions are tied to it and we would be saddened if we lost it. Insurance will help protect that emotion to a certain extent and the actual value no matter how much you paid for it.”

But more often than not, she said people do not know how much their jewellery is worth. “They might remember the purchase price but give minimal attention to how much it is appreciating itself. They need to obtain a valuation certificate from a certified jeweller to represent the precise value at the time. There have been cases where clients presented the receipt of the item without the valuation and in the event of a claim, the insurance company settled a maximum of 150 per cent increase on that receipt value which, left the client devastated with the limit paid.”

Cost of insurance

Tolani agrees. “When buying a jewellery insurance, key documents you should have include a valuation certificate for old jewellery or your purchase bill if it is a recent purchase. If you buy any new jewellery, call your insurance company to add it to your list of valuables to ensure it is immediately covered. At the time of claim, a police report is also required from the city where it was stolen.”

“House insurance with basic valuable cover can start from as low as Dh1 per day, for further covers you can always request for modifications to the insurance policy.”

Fenech said: “Personal jewellery is normally covered by a home policy under the contents section. Jewellery valued not more than Dh10,000 (market estimate) per item may not be declared in the proposal form, however, if one piece alone costs more than this amount, then its specifics need be notified to the insurer. Premiums for jewellery valued up to Dh10,000 may roughly cost an extra Dh120 per annum, in addition to the contents insured and can be revised annually.”

You speak:

Have you insured your jewellery?

Write to us at: editor@xpress4me.com