Gold jewellery Gold jewellery exports may decline by about 50 per cent in this financial year from last year after government restrictions The recent rally in gold prices attracted attention from the analysts worldover. A barrage of questions are thrown at them-whether there can be a gain in going back to gold as a form of investment. We often are unaware about how the valuation of gold takes place, treatment of antique forms of jewellery in valuing them, and different insurance schemes that exist for jewellery. In India, jewellery insurance is at a nascent stage, and only with the entry of the private players in the insurance landscape, jewellery insurance is tryoing to find a proper place. Globally, it has reached a fairly matured stage. In this article
The recent rally in gold prices attracted attention from the analysts worldover. A barrage of questions are thrown at them-whether there can be a gain in going back to gold as a form of investment.
In India, jewellery insurance is at a nascent stage, and only with the entry of the private players in the insurance landscape, jewellery insurance is tryoing to find a proper place. Globally, it has reached a fairly matured stage.
In this article, we'd try to focus on different insurance schemes that exist for jeweller, the FAQs, and briefly touch upon the valuation aspect.
Says govt-approved valuer Vinay Mehra from Mehra Sons Jewellers: "A mathematical formula encapturing the quality of gold determines the value of gold. In case of antiques, it is the rarity of the piece which is important in evaluating it. Diamond valuation depends on : a. colour b. clarity c. cut, and d. carat weight
But no clear-cut method exists for valuing antique piece of jewellery. "
And how important is it to insure your jewellery items?
Says tax consultant Subhash Lakhotia: "Premium is not a big amount, and one should always go for insuring jewellery against theft, robbery etc."
Now, lets peep through the various insurance schemes that exist in the market today.
Says Antony Jacob, deputy managing director, Royal Sundaram Alliance: "Royal Sundaram would look to insure jewellery as part of its comprehensive home contents package "HomeShield". All risks cover is provided which is the widest range of cover available and includes protection against fire, burglary, accidental damage and theft inside the house. Cover is also provided for in case the jewellery is worn by the person outside the house, anywhere in India. This cover would also include snatching. With effect from 1 July, cover would be on a replacement value basis - that is, the company will pay to have the item replaced. The rate for cover is 1 per cent of the sum insured. All jewellery items over Rs 2 lakh in value will require a valuation certificate. While Royal Sundaram doesn't provide the valuation, it can recommend suitable valuers to a customer. There are no special conditions for antique jewellery, other than to have a valuation certificate as above."
Iffco-Tokio General Insurance, however, has a more comprehensive policy on jewellery insurance
Says Jun Hemmi, director-general, operations, Iffco-Tokio :" IFFCO-TOKIO has two schemes for insuring golden jewellery.
Jewellers Block Policy (this policy has been finalised by the company, and is waiting for approval from Insurance Regulatory and Development Authpority). The policy has been drafted with the aim of offering one single policy to the various jewellery shops so that under one cover they can have insurance protection for their entire assets, interests and liability. The idea is to provide under a single window all the requisite coverages, which result in logistic costs being reduced to a great extent for the insured. This policy has been divided into some sections as follows: