Is Jewellery Block Insurance covers all the perils ? (Jewellery)
The policy covers very specific risks such as: Fire ,Explosion ,lightning , burglary ,hold-up ,robbery , riot strike & malicious damage only but the policy holders are not aware of the risks covered and they thinks it is an all risks policy, where as it is not so.
Its only after a claim occurs that the deficient policy conditions come to limelight i.e the risks of Storm, Flood ,tempest, Inundation ,Earthquake and other perils of Standard Fire & Special perils Policy are not covered.
During the recent floods in J & K & other states, many a jewellers suffered huge losses but they got rude shock of their lives , when they were informed that the peril of Flood was not covered under the policy , as the same was an add- on peril, covered by payment of additional premium.
Further the owners also thought that their Furniture Fixtures also includes the Tools of Trade as well , since in the proposal forms of many companies , there was no column to mention the tools of trade .
However the policy form has a separate column for Tools of Trade , which was shown as Nil.
Thus the claimants virtually got nothing , as the stocks etc were not covered against the risks of Flood. More over the Tools of Trade were not specifically mentioned and hence not covered.
Be careful while insuring Jewellers shop