Though it is essential to choose the best jewelry insurance policy; it is equally important to ensure it is sufficient. If the sum insured covered under jewelry insurance policy is too high, then you are overpaying for your insurance. Similarly, if the cover available under jewelry insurance policy is low, you would have to pay a substantial portion from your pocket at the time of claim.
Therefore, it is imperative to choose the correct sum insured under jewelry insurance policy to get comprehensive protection.
As jewelry insurance policy includes various sections, the sum insured is determined on the basis of the section (s) opted by you. Here, are some of the sections included in jewelry insurance policy –
| Type of Sections | Required Sum Insured |
| Section I: Property at the policyholder’s premises | The Sum Insured under Section I, II & IV should be in sync with the total purchase invoice. It may include, cost price of gold, silver, pearls and other precious stones of any kind or whatsoever and/or other merchandise and material which are used in the insured’s business. It can also have additional expenses which are incurred on glazing, artwork &/ or finishing of Jewellery and freight & duty which is paid. However, it should not be more than the 10% of the purchase invoice (cost price). |
| Section II: Property outside the policyholder’s premises | |
| Section IV: Insured property at exhibition | The sum insured for cash & currency notes would be the maximum value at risk at any point of time during the policy tenure. |
| Section III: Transit insurance | Sum insured should present the annual carrying limit of the transit. |
| Section V: Other Property | Sum insured should be equal to the reinstatement value of the insured property |
| Section VI: Infidelity of employees | The sum insured shall be (a) as per the limit mentioned in the Schedule in respect of an employee against his/her name and / or designation as prior declaration and / or (b) the anyone incident limit and / or (c) the limit in respect of all claims as mentioned under the policy. |
| Section VII: Plate glass | Coverage should be enough to replace the item in case of loss, minus depreciation. |
| Section VIII: Signage | Coverage would be the current market value. |
| Section IX: Electronic Equipment | The coverage would be equal to the cost of replacement of the insured property by new property of the same type and capacity. It means the replacement value would include freight, dues and customs duties and erection costs. |
| Section X: Portable Equipment | Sum insured would be the current market value, i.e., replacement cost after deducting depreciation. |
| Section XI: Employee Compensation | Coverage would be the limit of liability opted by the policyholder. |
Further, the sum insured under jewelry insurance policy can be decided on the basis of the cost price of jewellery items, anticipated losses which may arise along with the market value of the property. While deciding the sum insured under jewelry insurance policy, make sure to carefully compute the sum insured and make sure it is sufficient—neither too high nor too low.
Read More: How to File a Claim Under Jewellers Block Insurance?
The sum insured under the policy would be subjected to the excess as well. It means, at the time of loss or damage, the policyholder would have to pay a certain portion of the claim and the remaining would be settled by the insurer.
How can SecureNow help you?
Undeniably, the field of corporate insurance is tricky and therefore, it is advised to take the help of a leading corporate insurance advisor SecureNow, which can help you choose the right insurance policy as per your needs. You would only need to enter a few details about your requirements, and SecureNow would help in generating jewelry insurance policy quotes which you can compare and pick the best option as per your needs.
To get more clarity on the intricacies of the insurance sector, you can contact SecureNow and seek opinions from their experts. As SecureNow has a wide network of insurers, it becomes easy to find and customise the jewelry insurance policy at easy rates.
