Jewelery InsuranceImage Credit source: ai generated
In India, gold is not just a metal, but a symbol of savings and social security for generations of families. But today when gold prices are at a historic high and the price of 10 grams of gold has reached close to ₹ 1.5 lakh, this precious gold has now become a big security concern. With rising prices, the risks associated with jewelery have also increased manifold. The surprising thing is that people in the country are continuously buying gold, but are still not paying attention to taking ‘insurance’ for its safety. This negligence is making both customers and jewelers vulnerable to major financial risks such as theft and loss.
Challenge of burglary has increased with expensive gold
When the value of jewelery kept in the house reaches lakhs and crores, the risk of theft and burglary also increases. In today’s times, keeping gold in a home safe or cupboard has become more risky than before. Challenges have increased not only for the common customers but also for the jewelery traders. Their stock is now more expensive than ever and there is always a fear of theft or loss during storage, display to customers and transportation from one city to another. Despite this increasing risk, people are not taking it seriously.
One more mistake and your entire income can be lost.
According to market experts, small and medium scale jewelers in Tier-2 and Tier-3 cities are the most vulnerable at this time. These traders either do not have adequate insurance cover or they are completely uninsured. Same is the situation of those artisans, traders and exporters, through whose hands jewelery worth crores passes every day. The total value of the jewelery industry in India is around ₹ 4.7 lakh crore, but in comparison the size of the jewelery insurance market is only ₹ 250-500 crore. This figure is scary because it shows that only a very small part of such a big industry is covered by insurance. People still see insurance premium as an ‘additional expense’ rather than protection, which can prove to be a big mistake.
What is available in jewelery insurance?
There are special policies available in the market for jewelers like ‘Jewellers Block Insurance’, which have been designed keeping in mind the specifics of this business. It not only covers common risks like theft, burglary and robbery, but also compensates for loss caused by fire or any natural calamity. Most importantly, it also includes fraud committed by employees, which businessmen often ignore. Apart from this, transit insurance also provides protection against mishaps that may occur while transporting goods from one place to another.
Why is this protective shield important for customers?
Jewelery is not just an investment but also related to one’s emotions. Given the current prices of gold, if God forbid something untoward happens or the jewelery gets stolen, it may be very difficult for today’s middle class to buy it back. Jewelery insurance policy acts as a financial shield against theft and accidental loss. This ensures that the entire burden of the loss does not fall on your pocket. Just like we insure our car or health, now is the time to provide insurance protection to this precious asset which is priced at ₹1.5 lakh per 10 grams.
