There are various reasons why claims on jewellers’ insurance policies might be denied:

Underinsurance: If the insured value of the jewellery is less than its actual value, the claim may be partially paid or rejected.

Policy Exclusions: Claims can be rejected if the cause of loss is specifically excluded in the policy, such as damage from wear and tear, gradual deterioration, or certain types of accidents.

Policy Conditions: Failure to meet the policy’s conditions, such as maintaining adequate security measures or disclosing relevant information during the application process, could result in claim rejection.

Misrepresentation: Providing false or misleading information when purchasing the policy can lead to claim rejection.

Late Reporting: Failing to report the loss or damage promptly after it occurs can result in claim rejection.

Unexplained Loss: If the cause of loss is unclear or cannot be substantiated, the claim might be rejected.

Fraud: Attempting to deceive the insurance company, such as by staging a loss or providing false documentation, can lead to claim rejection.

Section Not Opted For: If a specific section of coverage is not chosen, such as Fidelity coverage for dishonesty or Exhibition coverage for goods taken to exhibitions, claims related to those aspects will not be covered.

Inadequate Paperwork: Claims are often based on documentary and physical (CCTV) evidence, so incomplete or insufficient paperwork can lead to claim rejection.

Negligence: Failing to take reasonable precautions and care of stock, such as leaving stock in an unsafe location or losing keys, can result in claim rejection.

Trade Credit: Claims for delayed payments on goods given on credit are not covered unless specifically opted for with trade credit insurance.

Non-Payment of Premium: If the premium is not paid, the claim will not be processed. It’s crucial for jewellers to thoroughly review their insurance policies, understand the coverage, and adhere to all requirements to reduce the risk of claim rejection. So incase you cannot do it on your own ask consultation from Ambicaa Insurance Corpn or simply log on to www.ambicaajewelinsurance.com