Jewellery and diamond stock is uniquely vulnerable — high value, easily portable, anonymous in the open market, and handled by multiple parties across a complex supply chain of employees, goldsmiths, brokers, sorters, and angadias. A standard commercial property or burglary policy is wholly inadequate for the jewellery trade. Jewellers Block Insurance is the purpose-built specialist policy for jewellers and diamontaires — a 4-section package covering your stock wherever it is: in your premises, with your employees and trade partners, or in transit across India.
Miscellaneous Insurance · Jewellery Trade · Diamontaires · Gold · Diamond · Precious Stones · Wholesalers · Retailers
Jewellers Block Insurance is a specialist package insurance policy exclusively designed for jewellers and diamontaires — establishments that deal in jewellery, gold and silver ornaments, diamonds, precious stones, pearls, and related items. The policy is structured in 4 sections covering the jeweller’s stock across its entire journey: at the showroom and premises, with employees and trade partners such as goldsmiths and sorters, in transit through angadias or by air and post, and including the shop’s furniture and fixtures. The name “Block” refers to the comprehensive, all-in-one structure that “blocks” all the key risk exposures of the jewellery trade under one policy.
Comprehensive cover for jewellery, gold, diamonds, and cash at the insured showroom/godown against fire, burglary, hold-up robbery, riot, terrorism, and malicious damage — Section I (mandatory).
ON PREMISESSection II covers jewellery in the custody of employees, partners, directors, diamond sorters, brokers, agents, cutters, and goldsmiths — protecting the stock throughout the entire trade handling chain.
SECTION IISection III covers jewellery in transit through angadia carriers, by registered parcel post, and by air freight — the only policy that specifically names angadia as a covered transit mode for the trade.
ANGADIASection IV covers the jeweller's trade and office furniture, display cases, fixtures and fittings at the premises against fire, burglary, robbery, riot, and terrorism — the physical infrastructure of the showroom.
SECTION IVAll sections include fire, explosion, lightning, and terrorism coverage — protecting jewellery stock from catastrophic fire events in dense trade clusters and terrorist incidents that affect jewellery markets.
FIRE & TERRORPremises with special security features — built-in vaults, strong rooms, CCTV, armed guards — qualify for premium discounts. Premises are categorised Class I, II, or III based on security level, with lower rates for higher security.
SECURITY DISCOUNTThe 4-Section Structure — Complete Cover for Every Stage of the Jewellery Trade
Section I is compulsory. Sections II, III, and IV are optional — but strongly recommended for any jewellery business where stock moves beyond the showroom premises, which describes virtually every jewellery trader in India.
Section I is the mandatory foundation of the Jewellers Block policy. It covers loss or damage to jewellery, gold and silver ornaments or plates, pearls, precious stones, cash, and currency notes whilst contained in the insured premises, caused by:
• Fire — accidental fire including fire from adjacent premises
• Explosion — explosion of gas cylinders or other pressure sources within or adjacent to the premises
• Lightning — direct lightning strike damage to premises and contents
• Burglary and housebreaking — forcible and violent entry into the premises and theft of jewellery
• Theft — theft from within the premises including shoplifting by customers (subject to specific conditions)
• Hold-up and robbery — armed robbery at the premises, whether during business hours or after hours
• Riot, strike, and malicious damage — mob damage to stock and premises during communal violence, bandhs, or targeted malicious acts
• Terrorism — loss or damage from a declared terrorist act
What is covered under Section I:
• All jewellery and ornaments: gold, silver, platinum, diamond-set, gemstone-set, antique jewellery
• Loose diamonds, gemstones, and pearls in the premises
• Gold and silver bars, granules, and bullion held as raw material or reserve stock
• Cash and currency notes held in the showroom (subject to specific limits)
• Jewellery held on consignment from other jewellers
Sum insured basis: The sum insured under Section I should represent the cost price of all jewellery and other items at risk at any one time — not the retail selling price. Insuring at retail price would constitute over-insurance; insuring at cost price correctly represents the insured’s financial exposure.
Section II extends the coverage beyond the insured premises to cover the jewellery wherever it is in the custody of the people who handle it through the trade cycle. This section is critical for any jewellery business because stock is routinely outside the showroom in the hands of employees, trade partners, and service providers.
Covered custodians under Section II:
• The insured themselves — jewellery in the personal custody of the insured proprietor or managing partner
• Partners and directors — jewellery carried by business partners or company directors for sales calls, bank visits, or personal delivery to customers
• Employees — salespeople, delivery staff, and other employees who carry jewellery for business purposes
• Diamond sorters — specialists who sort, grade, and separate diamonds, who typically work with parcels of diamonds received from the jeweller
• Brokers and agents — jewellery sent “on approval” to brokers who show it to potential buyers
• Cutters — diamond cutters and polishers who process rough or semi-polished diamonds
• Goldsmiths — jewellery artisans who repair, resize, redesign, or polish jewellery sent from the showroom
Note: Cash and currency notes are not covered under Section II — only jewellery and precious stones are covered when outside the premises.
Sum insured basis: The sum insured under Section II should represent the cost price of the maximum stock likely to be in the custody of employees and trade partners at any one time.
Coverage perils under Section II: All the same perils as Section I (fire, burglary, theft, hold-up, riot, terrorism) apply wherever the jewellery is in the custody of the covered persons.
Section III covers loss or damage to jewellery and precious stones (not cash) whilst in transit through:
• Angadia: The traditional and still dominant logistics system for the Indian jewellery and diamond trade. Angadias carry high-value parcels of gems, diamonds, and jewellery between trade centres — Mumbai Zaveri Bazaar to Surat Diamond Bourse, Jaipur to Kolkata, etc. The angadia system is informal, trust-based, and lacks the financial depth to compensate for major losses. Section III is the only insurance available to jewellers for angadia transit losses.
• Registered parcel post: Parcels of jewellery and gems sent through India Post under registered parcel service with postal insurance — the policy covers the difference between the postal compensation cap and the full value of the parcel.
• Air freight: Jewellery and gems consigned as air cargo or air freight, including courier services, between cities within India or internationally.
Sum insured basis: The sum insured under Section III should represent the maximum loss likely to arise from any one incident — the maximum value that could be in a single angadia parcel, postal package, or air consignment at any one time. It is not the total annual transit value but the worst-case single-transit loss.
Angadia as a named transit mode: The explicit naming of angadia in Section III is a defining feature of Jewellers Block Insurance — no other commercial insurance product covers angadia transit. For the Indian jewellery and diamond trade, which depends on angadia logistics for inter-city movement, this section is indispensable.
Section IV covers the physical infrastructure of the jewellery showroom — the trade furniture, display cases, office furniture, fixtures, and fittings at the insured premises — against the same perils as Section I:
• Fire, explosion, lightning
• Burglary and housebreaking
• Theft, hold-up, robbery
• Riot, strike, malicious damage
• Terrorism
What Section IV typically covers:
• Glass display cases and showcases (a critical and expensive component of any jewellery showroom)
• Built-in display units, counters, and service areas
• Safe and vault door (physical structure — not the contents, which are covered under Section I)
• Office furniture (desks, chairs, computers, office equipment)
• Signage, CCTV systems, security alarm systems
• Interior fixtures (lighting, electrical fittings, decor)
Sum insured basis: Market value of the insured property — i.e., the current market value of the furniture and fixtures at the time of insurance, reflecting their age and condition.
Practical note: Section IV is often undervalued by jewellers who focus primarily on the stock SI. However, a high-end jewellery showroom can have ₹50 lakh to ₹5 crore in display infrastructure, custom cabinetry, and security systems that would need to be replaced after a fire or burglary event.
How Premises Security Determines Your Premium — Class I, II & III
Jewellers Block Insurance categorises premises into three security classes (Class I, II, and III) based on the physical security arrangements at the insured showroom. Higher security class = lower premium. Investing in security infrastructure directly reduces your insurance cost.
| Class | Security Profile | Premium Impact | Typical Establishments |
|---|---|---|---|
| Class I | Highest Security — purpose-built vault or strong room with reinforced walls and vault door; CCTV covering all entry/exit and display areas; armed security guard during business hours; electronic alarm system with police/security company linkage; time-lock on vault | Lowest Premium Rate | Large organised jewellery showrooms, national chain jewellers, high-end diamond dealers with dedicated secure premises |
| Class II | Moderate security — dedicated safe (not necessarily vault-grade), CCTV, alarm system, security guard (may not be armed), grille/shutter security | Moderate Premium Rate | Mid-size retail jewellers, established regional jewellery showrooms, diamond trading offices with standard security |
| Class III | Basic security — standard commercial safe, shutters and grilles, basic alarm, no CCTV or inadequate coverage | Highest Premium Rate | Small jewellery shops, market-based jewellers, smaller diamontaires without dedicated security infrastructure |
The Jewellers Block policy is specifically designed for jewellery wholesalers and retailers. The following businesses are NOT eligible for Jewellers Block Insurance:
• Manufacturing establishments where the work is predominantly manufacturing — factories, workshops, and units whose primary business is making jewellery (not selling it). These establishments need industrial/fire insurance for their manufacturing plant and work-in-process stock.
• Cutters and goldsmiths — businesses whose primary activity is cutting, polishing, or working on jewellery for other parties (not retail sale). They can be covered as custodians under a jeweller’s Section II cover, but cannot take their own Jewellers Block policy.
• Angadias — the transit carriers themselves cannot take Jewellers Block insurance for their own liability. Angadias require specialist goods-in-transit or carriers’ liability insurance.
• Brokers and pawnbrokers — brokers who do not own the jewellery but handle it on behalf of others, and pawnbrokers whose business model involves taking jewellery as loan collateral, are not eligible for the standard Jewellers Block policy.
How to Set the Correct Sum Insured for Each Section
Different valuation bases apply to different sections of the Jewellers Block policy. Getting the sum insured right for each section is critical — underinsurance in any section leaves the jeweller partly exposed to uninsured losses.
The sum insured for Section I (on premises) and Section II (with employees/trade partners) must represent the cost price of the jewellery and precious stones at risk.
Cost price means:
• For gold jewellery: the cost of the gold (at current gold purchase price) plus the making charges and stone costs
• For diamond jewellery: the cost of the diamonds (purchase price from supplier) plus gold/metal cost and setting charges
• For loose diamonds and gems: the purchase price paid to acquire them from the supplier
• For gold bars/bullion: the current market purchase price of the gold
• Not the retail selling price (which includes the jeweller’s profit margin)
Practical approach:
• Take the total value of stock as per your jewellery register at cost price
• For Section I: Include all stock at the showroom plus stock in the safe/vault at any one time
• For Section II: Estimate the maximum cost-price value of stock that is out of the showroom with employees, goldsmiths, sorters, and brokers at any one time
• Account for seasonal peaks — Diwali, wedding season, Akshaya Tritiya — when showroom stock may be 2–3 times the normal level
Underinsurance warning: If your actual stock at cost price exceeds the Section I sum insured, you are underinsured and claim settlements will be proportionately reduced. Annual review of sum insured at renewal is essential, particularly as gold prices change.
The sum insured for Section III (transit) is calculated differently from Sections I and II. It represents the maximum loss that could arise from any one incident in transit — not the total annual value of all transit movements.
How to determine the maximum single-transit loss:
• What is the maximum value of a single angadia parcel you ever send? (e.g., if you regularly send parcels of rough diamonds worth ₹2 crore to Surat, your Section III SI should be at least ₹2 crore)
• What is the maximum value of a single registered post parcel? (subject to post office registered parcel limits for postal insurance)
• What is the maximum value of a single air freight consignment?
The correct SI = the highest of these three transit type maximums.
A common error is to insure Section III at the same level as Section I, which may be either excessive (if transit parcels are small) or inadequate (if large single consignments are sent). The transit SI should be calibrated to the largest single parcel value in practice.
Note: Cash and currency notes are NOT covered under Section III transit. Only jewellery, diamonds, gold, silver, and precious stones are covered in transit.
The sum insured for Section IV (trade and office furniture and fixtures) is based on the market value of the insured property — the current value reflecting age and condition, not replacement with new equivalent.
What to include and value under Section IV:
• Display showcases and counters (a modern jewellery showroom may have ₹25–75 lakh in custom glass and wood display infrastructure)
• Office furniture (desks, chairs, filing cabinets)
• Computer equipment, POS systems, billing machines
• CCTV systems and security infrastructure (though security systems may be excluded or sub-limited)
• Interior décor, false ceiling, custom lighting
• Safe and vault door structure (not contents)
Practical advice: Commission a professional valuer to assess your showroom’s furniture and fixtures if the total value exceeds ₹25 lakh. This ensures an accurate market value basis and prevents underinsurance disputes at claim time. Keep the valuation updated every 2–3 years, or when significant refurbishment is undertaken.
Which Jewellery Trade Businesses Should Have Jewellers Block Insurance
Jewellers Block is essential for every wholesaler and retailer in the jewellery and diamond trade. The range of businesses that qualify and benefit is broad — from Mumbai's largest diamond exporters to local jewellery retailers in tier-2 and tier-3 cities.
How to File a Jewellers Block Insurance Claim
Jewellers Block claims — particularly burglary and robbery claims — require immediate, precisely sequenced action. The quality of documentation provided in the first 24 hours critically determines the claim outcome.
For burglary, robbery, or hold-up (the most common Jewellers Block claim type):
• Call the police immediately — 100 / local police station. File an FIR (First Information Report) as soon as possible. The FIR is a mandatory document for all theft, burglary, and robbery claims. Without an FIR, the claim will typically not be admitted.
• Do NOT touch or disturb the crime scene before police arrival — preserve fingerprints, forced entry evidence, and CCTV footage
• Secure the CCTV footage immediately — save to an external device or cloud upload before any system failure or recording overwrite
• Call Probitas on 022 4302 0000 to register the claim notification
For fire:
• Call the fire brigade first
• After fire is extinguished, do not remove any debris until the fire brigade has given clearance and the insurer’s surveyor has inspected
• Notify Probitas immediately
For transit loss (angadia / post / air):
• Notify the angadia, post office, or air carrier immediately and obtain a written acknowledgement of the reported loss
• File FIR for robbery or theft in transit
• Notify Probitas immediately — most transit policies require notification within 24 hours
Most policies require notification within 24 hours of discovery. Do not delay.
The core of any Jewellers Block claim is the stock loss statement — documenting exactly what was taken or destroyed. For a burglary claim, this means:
• Prepare a detailed list of all items missing: for each piece — description (type, metal, stones), weight of metal (grams), stone details (carat, quality), and cost price
• Cross-reference against your jewellery register: Every item listed as lost must be traceable to an entry in your jewellery register showing it was in the premises at the time of the loss. The jewellery register is your primary evidence for what stock you held.
• Identify any stock that was recovered undamaged or only partially damaged
• Compile purchase invoices for high-value items: For individual pieces or parcels above a threshold value, original purchase invoices from suppliers are required
• Compile photographs: Pre-loss photographs of specific pieces or categories help establish the identity and quality of stolen items
For a fire claim, the stock loss statement must identify what was in the showroom and vault at the time of the fire, with supporting documentary evidence of stock levels at that time (accounting records, last stock-taking, daily stock ledger).
The complete document set for a Jewellers Block claim:
• Completed claim form from the insurer
• FIR copy — mandatory for all theft, burglary, robbery, and fire claims
• Policy copy and premium receipt
• Detailed stock loss statement at cost price, section-by-section
• Jewellery register — the complete stock register showing entries and exits
• Purchase invoices for lost items (from suppliers)
• CCTV footage from the date of the incident (burned onto DVD or uploaded to secure storage)
• Photographs of the crime scene, forced entry, and any damaged stock
• Fire brigade report (for fire claims)
• Bank statements showing gold purchase transactions (to corroborate stock purchase history)
• GST returns / income tax returns showing declared stock values (to establish consistency with claimed stock levels)
• Valuation certificates for specific high-value items if available
• KYC documents and bank account details for settlement
The insurer appoints a specialist jewellery insurance surveyor (typically an experienced jewellery valuer or insurance surveyor with jewellery trade expertise) to assess the claim:
• The surveyor verifies the stock loss against the jewellery register, purchase invoices, and accounting records
• Cross-referencing is a critical step: the surveyor checks whether the quantity and value of claimed stock is consistent with declared stock in GST returns, income tax filings, and banking transactions
• For robbery/burglary claims: the surveyor reviews the CCTV footage, the police investigation progress, and the crime scene evidence
• The surveyor assesses the section-wise sum insured adequacy — if the actual stock exceeded the Section I or II sum insured at the time of the loss, the proportionate average clause applies
• Settlement is offered at cost price (not retail price) for lost stock
• For damaged items that can be repaired: repair cost is assessed and the insurer pays repair costs rather than replacement value
Probitas manages the surveyor coordination and supports the jeweller throughout the claims process to ensure a fair and timely settlement.
What Jewellers Block Insurance Does NOT Cover
Understanding the exclusions is critical for jewellers — particularly the conditions around unexplained disappearance, unregistered stock, and claims without FIR.
Stock found to be missing without any identifiable cause — no burglary, no fire, no theft event — is excluded. There must be an identifiable insured event. Shrinkage, bookkeeping errors, and mysterious disappearance are not covered.
Standard Jewellers Block policies typically do not cover theft or misappropriation by the insured's own employees. Employee dishonesty/fidelity requires a separate Fidelity Guarantee Insurance or specific endorsement.
Loss in weight or quality of gold, diamonds, or stones from normal wear, handling, acid cleaning, polishing, or gradual deterioration in quality is excluded. Only sudden loss events are covered.
Loss during transit by any mode NOT listed in Section III — e.g., transit by private vehicle, cycle courier, or hand-delivery by a person not qualifying as an angadia — may not be covered under Section III.
Items not recorded in the jewellery register at the time of loss are extremely difficult to claim — the register is the primary evidence of what stock was held. Unrecorded items may be denied at survey.
Loss or damage caused by war, invasion, civil war, revolution, or government action is excluded. Terrorism is covered under Section I (if IMTRIP terrorism clause is in place); large-scale political violence is not.
Loss, damage, or reduction in value during cutting, polishing, melting, setting, or any manufacturing process is excluded. Jewellers Block covers trading stock, not work-in-process losses from the manufacturing process itself.
Cash and currency notes are specifically excluded under Section II (with employees) and Section III (transit). Only jewellery and precious stones are covered away from the premises — cash cover applies only at the insured premises under Section I, within stated policy limits.
The information and product comparisons displayed on this platform are intended solely for general informational and evaluation purposes, and do not constitute a legal offer or binding insurance contract. Specific policy features, premium rates, riders, and underwriting guidelines are determined exclusively by the respective general insurance carriers and may vary significantly based on the insurer, product tier, and location across multiple Indian states. All quotes and premium calculations generated on this website are indicative estimates based on preliminary data and do not guarantee final underwriting approval or policy issuance by the insurer. For comprehensive details regarding specific coverage terms, limits, and permanent exclusions, please refer directly to the official sales brochure and policy wording issued by the respective insurance company, which will take absolute legal precedence in the event of any discrepancy or dispute.
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By submitting you agree to our Privacy Policy and Terms & Conditions. Jewellers Block premium is subject to underwriting assessment including premises inspection, security class determination, and stock valuation. Premium and terms vary by security class, stock value, and sections opted. Probitas Insurance Brokers Pvt. Ltd. · IRDAI Lic. No. 528.