Bought a necklace this Makar Sankranti? Check if your jewellery has free insurance cover

If you plan to purchase any jewellery during this week’s festivities, make sure to ask the jeweller if the piece is insured.

That auspicious piece of gold jewellery you just bought to mark the festival of Lohri, Sankranti or Uttarayan may have come with an insurance cover that could come handy later. The store may not even have informed you about the cover, and that it comes at no additional cost, but it could be there. You have this cover even if you got the jewellery as your wedding or any other gift.

So, if you have purchased jewellery from Senco Gold and Diamonds, Malabar Gold and Diamonds, Kalyan Jewellers, or their sister concern Candere, then a group insurance policy purchased by the jeweller insures select gold products for a year.

Products covered

However, the products covered by the insurance policy could be different for different jewellers. For instance, Senco offers this only on their diamond jewellery range. Candere doesn’t insure loose solitaires, gift cards, and products below Rs 10,000.

Also read: Golden tips buy jewellery this festive season

Malabar Gold and Diamonds insures jewellery bought for Rs 20,000 or more for 365 days, all over India. At Kalyan Jewellers, the free  insurance covers gold and stone-studded jewellery and articles.

Even though jewellers pay the insurance premium on behalf of the customer for the first year, thereafter, customers may renew the policy directly with the insurance company.

What mishaps are covered?

These insurance policies cover loss due to fire and allied perils, and natural calamities such as earthquake, floods, etc. The cover includes riots, strikes, snatching, robbery, dacoity, or burglary. The jewellery is also covered against any loss or damage due to accident, terrorism, and during transit within India.

What does the insurance not cover?

Just because you have insurance doesn’t mean that you can afford to be careless with the jewellery.

Also read: When buying gold, do not fall prey to this common scam

If the jewellery is lost or mysteriously disappears, or you forget it  at some place, or if it is confiscated by government authorities, then you are not covered. This is because the insurance company deems such incidents ‘wilful neglect’ on the part of the insured.

What happens in case you're covered?

In case you lost your jewellery due to the  reasons specified  in the insurance policy, then you can raise a claim, provided you have filed a police complaint and have the invoice. However, you might not get back the entire price of your jewellery as policies typically cover 95 percent of the value of the jewellery,  excluding making charges and taxes.

How to raise a claim?

Usually, the seller doesn’t provide a policy document or phone numbers where you can register claims. Jewellers may provide an app or the name of a consultancy on their website to help you file a claim.

If nothing is mentioned, then  ask the jeweler for the name of the insurance firm and the master policy number, so that you can approach the insurer directly if no agency or agent is involved.

In order to raise a claim, you have to specify the reasons for the loss of the jewellery in a claim form, along with the  police complaint and any CCTV / eye-witness / other evidence.

Hence, if you plan to purchase any jewellery during this week’s festivities — or at any time in the future — make sure to ask the jeweller if the piece is insured. If it is, try and get all the details about the cover from the store.