Did You Know? Your Gold Jewellery Purchase Comes With A Free Insurance

Whether it's for an auspicious occasion such as a wedding ceremony or a festival such as Dhanteras, buying gold jewellery is a common practice in our country, right? Besides such cultural purposes, gold is also bought for investment purposes too.

But seldom are we, as buyers, aware of the free insurance that comes with gold purchase in India. Yes, you read that right.

Free Insurance With Gold Purchase

gold free insurance/cnbc

if you have purchased jewellery from prominent gold jewellers such as Senco Gold and Diamonds, Malabar Gold and Diamonds or Kalyan Jewellers, then a group insurance policy purchased by the jeweller insures select gold products for a year.

What All Is Covered?

gold free insurance cover/reuters

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

The products covered by such insurance policies turn out to be different for different jewellers. For instance, Malabar Gold and Diamonds insures jewellery bought for Rs 20,000 or more for 365 days, all over India, whereas Senco offers this only on their diamond jewellery range, and at Kalyan Jewellers, the free insurance covers gold and stone-studded jewellery and articles.

After the first year, customers may renew the policy directly with the insurance company, even though jewellers pay the insurance premium on their behalf.

Also Read: How Gold Jewellery Price Is Calculated In India? All You Need To Know

What All Is Not Covered?

free insurance gold/srishantadurga

Just like other types of insurance, not everything is covered under the gold insurance too. You are not covered if the jewellery gets lost, vanishes for no apparent reason, gets forgotten somewhere, or is seized by the government. This is because the insurance provider views these occurrences as the result of the insured's "wilful neglect."

Therefore, if you have filed a police complaint and have the invoice, you can file a claim if you lost your jewellery for the reasons listed in the insurance policy. You might not, however, receive your full purchase price back because policies usually only reimburse 95% of the jewellery's value¡ªmaking fees and taxes excluded.

How You Can Claim Insurance?

Typically, the seller doesn't give you a copy of the policy or contact information for filing claims. To assist you in filing a claim, jewellers might offer an app or the name of a consultancy on their website. If no information is provided, ask the jeweller for the master policy number and the name of the insurance company. If no agency or agent is involved, you can then approach the insurer directly. To file a claim, you must include the police report, any CCTV footage, eyewitness accounts, and other supporting documentation in a claim form that details the reasons for the jewellery's loss.

Also Read: Explained: How IRCTC Offers 10 Lakh Insurance At The Cost Of Just 0.35 Per Person

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