Jewelry Insurance: BAHRAIN - Essay Example

JEWELRY INSURANCE JEWELRY INSURANCE Just like other citizens, the people of BAHRAIN put on expensive jewelry. Jewelry entails expensive ornaments made of precious materials like diamond, gold, silver, and gemstones (Hendry 2004, p. 12). Ideally, jewelry holds great value and hence the need to safeguard them. Moreover, jewelry is fundamental in the modern fashion industry. Most people who wear jewelry are financial stable and seek to enhance their beauty or manifest their wealth. On the other hand, those who cannot afford the jewelry engage in stealing from the wealth population. Ideally, not everybody in BAHRAIN can afford jewelry. The act of insuring jewelry against theft, damage, or loss defines jewelry insurance. Jewelry insurance refers to the purchasing of insurance policies that indemnifies jewelry in case of loss, theft, or damage. Jewelry insurance would be very fundamental in BAHRAIN. The people of BAHRAIN wear a wide range of jewelry that includes Swiss Watches, earrings, leather products, family heirlooms, and Italian Jewelries. However, jewelry insurance is an insurance product that is not available in BAHRAIN despite its eminent demand. Across the globe, the frequency of insurance claims for stolen, fire, damaged, and lost jewelry is on an upward trend (Chubb Personal Insurance 2013, p. 1). Indeed, jewelry insurance claims have superseded other property insurance claims in the global arena according to the 2011 Contents Claims Index (Holmes 2013, p. 1). The prominence of the theft market for jewelry has led to increased claims on theft and loss of jewelry in most countries (Holmes 2013, p. 1). Jewelry experts have been advising consumers to buy a jewelry insurance policy that covers all jewelry. Ideally, it is devastating to lose valued jewelry to loss or damage (Altman 2013, p. 1). As such, the people of BAHRAIN should buy sufficient insurance cover to secure their jewelry. Thieves target jewelry materials with long lasting beauty. Such materials include Gold subject to its color, durability, luster, value, and accessibility (Hendry 2004, p. 11). The value of jewelry materials call for a sufficient insurance cover. Silver, copper, and Platinum are also valuable jewelry materials that require an insurance cover. The people of BAHRAIN should considerably buy insurance covers for any valuable jewelry. Ideally, we consider economic and emotional value of jewelry while analyzing jewelry insurance. In case of theft, damage, or loss, jewelry insurance can recover, repair, or replace insured jewelry products (Jewelers Mutual Insurance Company 2014, p. 1). Fashion jewelry is a lucrative yet hazardous business venture (Hendry 2004, p. 4). According to JCRS’s audits, it is apparent that insurers overpay jewelry claims (Hendry 2004, p. 4). We have two types of jewelry insurance coverage. Jewelry insurance includes itemized and blanket coverage (Chubb Personal Insurance 2013, p. 2). While itemized coverage refers to particular values of the policy. On the other hand, blanket coverage allows the consumers to meet all their insurance needs. Jewelry is not only valuable but reflects our personality and social status. In addition, jewelry symbolize our feelings for long-term relationships and hence the need to insure jewelry against loss, theft, and damage as we seek to safeguard their economic and social value. People of BAHRAIN should consider jewelry insurance so that they can enjoy wearing their valuable ornaments at all times without any fear for loss, damage, or theft. Indeed, most people buy jewelry insurance to gain freedom and confidence of wearing their valuable jewelry. Most notable is the fact that jewelry insurance operates like other insurance policies that people buy (Altman 2013, p. 1). However, jewelry insurance is specific for jewelry and covers more than other property insurance policies. Nevertheless, it is advisable for consumers to get a quotation from an insurance provider before buying jewelry insurance (Altman 2013, p. 1). As discussed herein, Jewelry insurance covers a wide range of risks. The consumer has a duty to seek for a jewelry insurance policy that offers comprehensive cover. Indeed, effective jewelry insurance policy should enable a consumer to replace or recover a jewelry item. Moreover, an efficient jewelry insurance policy will allow a consumer to buy from a local jeweler or favorite jewelers (Altman 2013, p. 1). Most jewelry insurance policies secure jewelry from obvious risks but a comprehensive jewelry insurance policy will offer extra ordinary security (Jewelers Mutual Insurance Company 2014, p. 1). People of BAHRAIN should consider a comprehensive jewelry insurance policy since it has additional benefits. In doing so, BAHRAIN should abide with the insurance standards set by the Jewelry Insurance Standards Organization (Jewelry Insurance Brokerage of North America 2014, p. 1). Jewelry Insurance Standards Organization seeks to streamline the insurance industry by enhancing the integrity of jewelry insurance standards, resources, and services (Jewelry Insurance Brokerage of North America 2014, p. 1). Apparently, the world including BAHRAIN is in dire need of jewelry insurance subject to rising costs of jewelry and the consequent increase of lost and stolen jewelry. Consumers have uninsured or underinsured most of jewelry across the globe (Chubb Personal Insurance 2013, p. 1). The trend has led to increased theft or loss of jewelry valued in billions. BAHRAIN should disregard the myths relating to the insurance of jewelry to reap the benefits of this insurance product. Apparently, the BAHRAIN market can derive the demand to support jewelry insurance policies. Jewelry insurance will increase the scope of insurance products in the under saturated BAHRAIN market. Jewelry insurance policies attract various costs. People in BAHRAIN should seek for quotations from insurance providers before buying the most comprehensive jewelry insurance policy. Moreover, a consumer must provide an appraisal before buying the jewelry insurance policy. A jewelry appraisal refers to a professional report developed by a jewelry expert to offer an estimation of the actual retail replacement cost (Altman 2013, p. 1). Moreover, an appraisal will describe the jewelry in details. An appraisal ensures that the quotation from the insurance provider is accurate and the coverage is comprehensive (Altman 2013, p. 1). The appraisal also confirms the current value of a jewelry since various factors can change the worthiness of a jewelry with time. A customer can get an appraisal either before or after buying an insurance coverage. The customer and the insurer derive their comfort from the appraisal since it guarantees sufficient coverage for the jewelry in case of the eminent risks. The client should also establish an inventory that will detail the cost, date, and location where the customer sourced the jewelry. Some of the jewelry insurance policy costs may include the payment for an appraisal. Apparently, customers pay for appraisal if they seek to insure a family heirloom or an ornament they have owned for long (Altman 2013, p. 1). Nevertheless, the cost of appraisals varies among insurers. Other policy costs include the rates for covering jewelry that may range from $1 to $2 for jewelry valued at $100 (Holmes 2013, p. 3). The value of the jewelry that a client is insuring and the type of insurance company that the client will consult has a direct impact on the policy costs (Altman 2013, p. 1). Generally, jewelry insurance policy cost between 1% and 2% of the jewelry’s value (Altman 2013, p. 1). While considering the policy costs, people of BAHRAIN should focus on the comprehensiveness of the reference insurance cover. Before buying jewelry insurance policy, one should analyze their current insurance coverage to ascertain its effectiveness (Ebeling 2011, p. 1). The client should then schedule jewelry according to value to reduce the policy costs. Consumers should consider blanket coverage subject to its benefits in insuring cheaper jewelry (Ebeling 2011, p. 1). Jewelry insurance appeals to BAHRAIN customers. Although jewelry insurance cannot replace the economic and social value of a specific jewel, a better jewelry insurance policy will help in repairing or replacing the jewelry in case of an eminent risk. As such, it is necessary to find the right jewelry insurance policy. At least jewelry insurance should reduce the pain of losing a valuable jewelry. We have personal and business jewelry insurance where personal jewelry insurance allows clients to insure their items in an independent manner. Indeed, customers can defeat the limitations and exclusions experienced in insuring jewelry with other insurance policies (Jewelry Insurance Brokerage of North America 2014, p. 1). Jewelry insurance allows consumers to launch claims on insured jewelry. Jewelry insurance companies have a mandate of settling such claims. There are various ways of settling jewelry insurance claims. Jewelry insurance specify a fixed indemnity incase a client loses insured jewelry (Eeckhoudt, Mahul, & Moran 2003, p. 207). Apparently, market value changes of insured jewelry do not constitute an insurance premium (Eeckhoudt, Mahul, & Moran 2003, p. 207). Customers who make jewelry insurance claims ought to provide accurate and up-to-date appraisals. Most insurance companies only replace the insured jewelry with a preselected item of the same kind and quality (Chubb Personal Insurance 2013, p. 3). There have been changes in valuing jewelry to accommodate various dynamics in the jewelry industry (Ebeling 2011, p. 1). The mode of handling jewelry insurance claims relies on the insurance company and form of coverage (Chubb Personal Insurance 2013, p. 3). Properly insuring jewelry guarantees an accurate, fair, and fast settlement of the claims. In settling the jewelry insurance claims, we should note that jewelry insurance offers lump sum indemnity. With more than 22 Bahraini insurance firms, Bahraini has a foundation of adopting jewelry insurance product (Central Bank of Bahrain 2007, p. 1). Works Cited Altman, J 2013, What You Need To Know About Jewelry Insurance, Lavalier Insurance Services, LLC, retrieved 16 December 2014, Central Bank of Bahrain 2007, Insurance Market Review, retrieved 16 December 2014, Chubb Personal Insurance 2013, The Importance of Jewelry Insurance and the Role of the Appraiser, retrieved 16 December 2014, < https://www.isa-appraisers.org/content/documents/j._white__jewelry_sell_sheet_aam_handout.pdf> Ebeling, A 2011, Is Your Jewelry Insurance Up To The Gold Standard? Forbes, retrieved 16 December 2014, < http://www.forbes.com/sites/ashleaebeling/2011/09/16/is-your-jewelry-insurance-up-to-the-gold-standard/> Eeckhoudt, L., Mahul, O. & Moran, J. 2003, "Fixed-reimbursement insurance: Basic properties and comparative statics", Journal of Risk and Insurance, vol. 70, no. 2, pp. 207. Hendry, D 2004, Jewelry Insurance, JCRS Inland Marine Solutions, Inc, retrieved 16 December 2014, < http://jcrs.com/Jewelry_Insurance_Manual/Jewelry_Insurance_Manual_sample.pdf> Holmes, T 2013, Rise in jewelry claims underscores need for sufficient insurance, retrieved 16 December 2014, < http://www.enservio.com/images/123/Rise%20in%20jewelry%20claims%20underscores%20need%20for%20sufficient%20insurance.pdf> Jewelers Mutual Insurance Company 2014, Jewelry Coverage, retrieved 16 December 2014, < http://www.perfectcircleinsurance.com/Jewelry-Insurance/Our-Coverage> Jewelers Mutual Insurance Company 2014, Protection for Real Life, retrieved 16 December 2014, Jewelry Insurance Brokerage of North America 2014, Personal Jewelry Insurance, retrieved 16 December 2014, < http://www.insure-jewelry.com/about_JIBNA.htm> Read More