From property to hard cash, valuable assets need to be secured against theft, burglary, natural calamities etc. There are special Insurances to cover for losses of each of these items. While insurances for house, car etc are quite common, did you know that gold items could be insured too?
There are some exclusive insurance products to protect gold assets from various types of risk. If you thought keeping gold in the bank locker was safe, then you must know that banks are not 100% liable for your assets, as the deposits in the locker are not declared to the bank.
Why Protect Gold Jewellery
Be it your wedding gifts or the gold purchased during auspicious occasions, the yellow metal is considered a safe haven during any financial crunch. Gold Insurance assures security for your jewellery. An insurance can help you recover the financial loss due to a mishap at home or at the bank.
About Gold insurance
You can either insure gold through standalone jewellery insurance or avail the cover under Home Insurance policy. The insurance provides protection against accidental loss, burglary, theft, damage or loss of the jewellery deposited in the bank locker. There are a few insurance companies that also provide cover if you are robbed of gold jewelry while wearing it. However, it is subject to conditions such as filing FIR, submitting valid proof of theft, etc.
Most Indian gold insurance companies provide a limited settlement claim amount. However, if you want full cover, you can go for a customised product by paying a higher premium. What doesn’t get covered by insurance includes losses or damage due to war, riot, terrorism etc.
Insurance companies do not take responsibility for recovering losses if damage is caused by the owner or a family member or maid/caretaker. Insurance companies are also not liable for paying any settlement claim if theft takes place in a house that has been left vacant for more than a month (30 days).
Things To Keep In Mind And Premium
You must keep all relevant documents in place as some insurance companies ask for purchase receipts of the lost or damaged gold jewellery to pay for settlement. In some cases, the insurance companies appraise the value of gold through their surveyor to decide the premium. While in other cases, companies offer coverage upon a declared insured value. However, the premium is high in such cases.
The premium on gold insurance depends on the amount of gold you insure with the insurer. Other determining factors include the prevalent market value of gold at the time of insurance purchase, condition of the jewellery and plans of the company.
(The writer is CEO, BankBazaar.com)