Insurance cover plays an important role in covering all the losses that a jeweller comes across in life. There are issues of robbery, stealing by the staff, shop burglary, earthquake, civil commotion, fire etc. The industry is known to work with Angadiya service, a door-to-door service to tackle the same.
What are the various jeweller block policies available?
Stock out of safe, outside business hours must be covered in an insurance policy. Cash on the premises should also be covered. Certification of diamonds is also covered in this particular insurance. Stock in the display window is another thing which must be covered.
Basis of valuation in the stock
The industry is moving from unorganised to organise. The market price and the labour charges must be covered too.
- CCTV cameras should be there.
- There should be a common watchman or a personal watchman.
- A standard safe should be there.
Shoplifting claims are made using CCTV footage only. Therefore, it is more important to get CCTV warranty than to have a watchman.
Jewellers block policy is the combination of fire insurance, burglary insurance and marine insurance. A single most policy for all the risks.
Section 2A, also called transit covers incidents of thefts that occur when the jeweller is travelling. Also, there should be power of attorney for other partners of the business. Make an affidavit for the partner which proves that he/she is a part of the business. A simple paper which has to be notarized.
It is also wise to prepare and carry a travelling voucher along, whenever you are travelling for business. Negligence can never be covered in the policy as mentioned in Section 2. However, Section 2B covers the losses when your jewellery material is with Jewellery karigars. If there is a theft incidence in the factory, it will be covered. However, negligence is not covered in this Section too.
The insurance company settles the claim in if the standard safe used to keep the cash or jewellery. Partial payment is given if the goldsmith or the Jewellery karigar has non-standard safe. If the Jewellery karigar takes away the cash or jewellery, it is not covered.
Courier companies can go by bus, train or ship but it is called courier shipment under section 3C.
Covering the risk of COVID-19
After the lockdown is over, it becomes our responsibility to cover our staff. The legal liability will be on the jeweller if he/she is not doing proper sanitization and not following guidelines for social distancing.
In case your customer is tested positive for COVID, you will have to pay the claims and the legal fee involved.
Cybercrime is the real thing and you can face heavy losses resulting out of hacking.
Another important point to be covered is the extra rates. Escalation clause covers all the extra rates and needs to be there in the insurance policy.