Gold prices are rising, also risks of theft. CA-banker says a Rs 1,000-Rs 5,000 yearly expense could save you lakhs. What is gold insurance?

Gold prices are climbing fast, and so is the fear of losing them to theft, fire, or accidents. With gold becoming one of the biggest assets in many Indian households, a CA-banker is now urging people to rethink how they protect it. He says a small yearly cost, often just Rs 1,000 to Rs 5,000, could potentially save losses running into lakhs. The idea is simple but often ignored: securing gold like any other valuable asset.

CA-banker Sarthak Ahuja took to social media to explain how “gold insurance” works in India and why it may be worth considering for families holding significant jewellery assets.

Jewellery add-on on home insurance policy

He explained that there are mainly three ways to insure gold. The first is a home insurance policy with a jewellery add-on. This covers risks like theft, burglary, and fire damage within the home. The add-on typically costs between 0.1% and 0.5% of the jewellery’s value. In simple terms, for every ₹10 lakh worth of jewellery, the annual premium comes to around Rs 1,000 to Rs 5,000.


However, he pointed out that home insurance usually caps jewellery coverage at around 20% of the total insured value. So if a home is insured for Rs 50 lakh, jewellery protection may be limited to around Rs 10 lakh.

All-risk jewellery insurance policy

The second option is a standalone or all-risk jewellery insurance policy. This is more comprehensive and covers jewellery even outside the home, including risks like chain snatching. The cost is higher, usually around 0.5% to 1% of the jewellery’s value annually, which translates to roughly Rs 5,000 to Rs 10,000 per Rs 10 lakh cover. While more expensive, it offers broader protection in real-world scenarios.

Insurance offered by jewellers

The third option he highlighted is promotional insurance offered by some jewellers, where buyers receive free coverage for one year when purchasing high-value jewellery, especially during weddings or festive seasons.
He also listed the documents typically required when buying a policy or making a claim. These include photographs of the jewellery, a valuation certificate from the jeweller, a detailed description such as weight, metal, and karat, and a copy of the FIR filed with the police in case of loss.


At the same time, he cautioned that not every situation is covered. Claims may be rejected if jewellery is left unattended for long periods, stored irresponsibly, such as in a car, or lost due to negligence without clear evidence. Misplacement at home without an FIR is also generally not covered.

Common hesitation

Addressing common hesitation, he noted that many people hesitate to pay even 1% annually for insurance. But with gold now forming a major portion of household wealth, often second only to real estate, protection becomes more relevant than ever.

He also added that gold prices are expected to continue rising over the long term, historically around 8% to 12% annually, which makes safeguarding it even more important. Finally, he advised checking the insurer’s claim settlement ratio before choosing a policy, suggesting it should ideally be above 90%, or at least not below 85%, to ensure reliability when needed.

Gold and silver price hike

His word of caution comes amidst the sharp rise in domestic gold and silver prices in India after the government hiked the import tariffs to ease the pressure on the country's foreign reserves. Gold futures prices in India rose 7% to Rs 164,497 ⁠per 10 ‌grams, while silver futures surged ⁠8% to Rs 301,429 per kg. Overnight, the government of India increased import tariffs on gold and silver to 15% from 6%.