Jewellers BlockPolicy
In 2026, the Jewellers Block Policy remains the primary comprehensive insurance for retail jewellers, wholesalers, manufacturers, and diamantaires in India. It is a specialized package policy that covers high-value stock—including gold, silver, platinum, precious stones, and pearls—against a variety of risks.
Standard Structure (The Four Sections)
Most Indian policies are divided into four specific sections, where Section I is usually mandatory and others are optional:
Section I (On-Premises)
Covers stock (jewelry, cash, and valuables) while kept at the business premises or in locked safes against fire, burglary, robbery, and natural calamities.
Section II (In Custody)
Protects stock while in the custody of the insured, partners, employees, directors, or authorized third parties like cutters and goldsmiths.
Section III (In Transit)
Covers valuables while in transit across India via registered post, air freight, or specialized couriers known as Angadias.
Section IV (Assets/Furniture)
Protects the physical infrastructure of the shop, including furniture, fixtures, office equipment, and safes.
A Jewellers Block Policy is designed to provide comprehensive protection by dividing coverage into four specialized sections, ensuring security for stock, valuables, transit risks, and business assets under a single policy structure.
Common Inclusions
Comprehensive protection for jewellery businesses against operational, financial, and property-related risks.
What's Covered?
Jewellers Block Policy provides extensive protection for valuable stock, entrusted jewellery, employee-related risks, and losses arising from insured perils, ensuring greater financial security for jewellery businesses.
Perils
Fire, lightning, explosion, theft, burglary, shoplifting (if opted), and natural disasters like floods or earthquakes.
Third-Party Stock
Coverage often extends to items held "in trust" or on commission from others.
Employee Fidelity
Protection against financial losses caused by the dishonest acts of employees or partners.
Key Exclusions
Policies typically do not cover:
Unexplained/Mysterious Loss
Disappearances that cannot be proven by specific evidence or stocktaking shortages.
Theft by Family/Employees
Losses involving family members or staff (unless a specific "Fidelity Guarantee" add-on is active).
Window Display (After Hours)
Items stolen from window displays after business hours.
Kimberley Process
Losses resulting from non-compliance with international "conflict diamond" regulations.
Wear and Tear
Gradual deterioration, moth damage, or cleaning/restoration processes.
Review Policy Exclusions Carefully
Understanding these exclusions helps jewellers choose appropriate add-ons and maintain proper business practices to minimize uncovered risks and avoid claim disputes.
Security Requirements (2026)
To qualify for coverage or premium discounts, insurers strictly mandate:
CCTV Surveillance
Must be installed with functional recording.
Safe Storage
Valuables exceeding certain limits (often ₹2 lakh) must be stored in burglar-proof safes or strongrooms overnight.
Armed Guards
Presence of security guards can significantly lower premiums.
Basis of Valuation
The claim amount is determined based on the valuation method applicable to different insured assets.
Jewelry / Gold
Generally valued at Cost Price + 10% to cover making charges.
Fixed Assets
Valued based on either Market Value or Reinstatement (new-for-old) value.
Accurate Valuation Ensures Fair Claims
Proper valuation of jewellery, gold, and fixed assets helps determine the correct sum insured, reduces the risk of underinsurance, and ensures smoother claim settlement when a covered loss occurs.