jewellery
How To Avoid Underinsuring Your Jewellery
Submitted by Michaela on Tue, 2012-03-13 13:37Image/Video:
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With the price of gold having more than doubled over the last five years, many consumers may be unaware that this may have had a significant impact on the value of their jewellery when insuring it against theft, loss or damage.
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This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptance, who says it is imperative that all consumers perform regular valuations of high value items such as jewellery to avoid underinsurance.
"If the insured value of the item is not increased to its current value, then not only will the jewellery owner be underinsured but some insurance companies may also impose penalties for invalid valuations.
"For example, if a consumer purchased a diamond ring in 2007 valued at R65,000, the current replacement cost of the ring could be as much as R120,000 due to fluctuations in the price of gold and other precious metals, so it must therefore be insured for this higher amount in the event of a claim."
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Protect your expensive jewellery while on holiday
Submitted by Michaela on Tue, 2012-03-13 13:18Image/Video:
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Before embarking on your festive season holiday, it vital to ensure your insurance cover is up-to-date for any expensive jewellery, as the risk of theft, loss or damage increases significantly in new surroundings or those tourist areas that are often known hot spots for pickpockets or con artists.
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According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, people often forget to ensure the valuable items they take with them on holiday are covered against all risks and for most people often the most expensive items they will be travelling with will be their jewellery. “If you are planning an international trip it is vital to check that your insurance covers you outside of South African borders and is not limited to domestic coverage.”
She says when packing bags, consumers should keep their jewellery in carry-on luggage rather than storing it with checked-in luggage. “Some international airports have strict security measures and your bag may be checked by security personnel. If this is the case then you should request a private room so that other people cannot see your valuables. In a worst case scenario, checked-in luggage may be lost and the reality is that liability cover is often very limited
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How To Avoid Underinsuring Your Jewellery
Submitted by Michaela on Tue, 2012-03-06 08:32Image/Video:
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Short description:
With the price of gold having more than doubled over the last five years, many consumers may be unaware that this may have had a significant impact on the value of their jewellery when insuring it against theft, loss or damage.
Content:
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptance, who says it is imperative that all consumers perform regular valuations of high value items such as jewellery to avoid underinsurance.
"If the insured value of the item is not increased to its current value, then not only will the jewellery owner be underinsured but some insurance companies may also impose penalties for invalid valuations.
"For example, if a consumer purchased a diamond ring in 2007 valued at R65,000, the current replacement cost of the ring could be as much as R120,000 due to fluctuations in the price of gold and other precious metals, so it must therefore be insured for this higher amount in the event of a claim."
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- 28 reads
Jewellery store heist highlights need for effective risk strategy
Submitted by Michaela on Thu, 2011-12-08 14:21Image/Video:
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The recent armed robbery at a jewellery store in Germiston, Johannesburg that resulted in the death of a policeman could be as a result of a new crime syndicate.
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The recent armed robbery at a jewellery store in Germiston, Johannesburg that resulted in the death of a policeman could be as a result of a new crime syndicate. As a result, it is crucial that retailers – particularly those holding high values of stock – ensure they not only have effective risk management strategies in place but can also offer trauma counselling should an incident occur.
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- 59 reads
MUA Product update
Submitted by Michaela on Fri, 2011-07-01 11:53Image/Video:
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The latest product updates include information about Window Glass limit, Agreed Value and Jewellery.
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We have the following product updates to share with you:
Window Glass Limit
Please note that MUA has changed the limit applicable to window glass on motor and classic motor policies. As a result, there is no longer a limit of R30 000 and the option to increase the cover for window glass has been removed.
- Cover for window glass is now up to the vehicle sum insured.
- The window glass excess still applies on each valid claim.
Agreed Value:
Cover for the Classic Motor policy is based on an agreed value which means the value of the vehicle is agreed between the policyholder and the insurer before inception of the risk or at renewal stage of the policy. Therefore at inception or renewal MUA requires the following:
- Before accepting a classic vehicle on an agreed value, the insured must provide a written valuation from either a Classic Car Club or a dealership showing the mileage and condition. If possible digital photographs should also be attached.
- At renewal stage, the insured will be requested to provide an updated valuation showing the recent mileage and any change in value or condition.
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If these requirements are not met, a Classic Vehicle will automatically be covered for reasonable retail value and not at agreed value.
Jewellery:
Please note that MUA has changed the limits that apply to jewellery and make sure you take note of the following changes:
- A claim for loss or damage to any watch or article of jewellery will be capped at no more than R20 000 for each item or pair, unless the insured provides a professional valuation for the by an independent jeweller dated less than 5 years before the loss or damage occurs.
- All items worth more than R50 000 each must be locked in a safe that is fixed to the building when the property is left unoccupied, or when the person covered by the policy is not actually wearing or carrying the items. If they are lost or stolen whilst not secured under the circumstances described above, any claim will be limited to R50 000.
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Corruption takes the sheen off jewellery insurance
Submitted by byrnie on Wed, 2011-03-16 20:45Image/Video:
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Dubious practices by certain suppliers within the jewellery industry means that some policyholders are at risk of losing out when filing claims for lost or stolen items. As a result, it is important that clients are made aware of the potential dangers when insuring their jewellery and how to overcome them.
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Dubious practices by certain suppliers within the jewellery industry means that some policyholders are at risk of losing out when filing claims for lost or stolen items. As a result, it is important that clients are made aware of the potential dangers when insuring their jewellery and how to overcome them.
One of the common ways that clients sometimes suffer at the hands of disreputable jewellers is having their lost or stolen items replaced with an item of lower spec than the jeweller actually quoted on. For example, a jeweller may attempt to win business by providing the cheapest quote to replace a diamond of 0.60 carats. However, when they actually provide the replacement, the diamond is only 0.59 carats. While the weight difference is minimal, the value between these two is hugely different.
These sorts of practices can occur at many levels from the jeweller not replacing the item correctly, to the claims staff at an insurer favouring certain suppliers to the consumer themselves filing a fraudulent claim. However, despite this it can be a good idea for brokers to advise their clients of the potential risks involved when insuring expensive items of jewellery.
For example, certain policies do not require insurers to replace lost or stolen jewellery using the original supplier. Being unable to use their original jeweller or receiving a replacement item that is perceived to be inferior to the one that was lost or stolen, can be a key reason in the breakdown in relationships between advisers and clients, who often feel betrayed by this practice and tend to blame their brokers. As an adviser, it can be a good idea to highlight this upfront to clients, especially if they have specified particular pieces of jewellery on their policy.so that they can choose to use their original jeweller if they so wish.
However, clients should also be aware that using the original jeweller is still no guarantee. Insurers often have a panel of jewellers they approach for quotations, who they can audit at any time. As a result, if a piece of jewellery is replaced with a lower spec product by one of these recommended jewellers, your client will have recourse to approach their insurer. However, if clients insist on choosing their own jeweller, they may find that they do not have this right to recourse.
To give clients the best level of protection possible, it can be a good idea to suggest they keep a detailed inventory of all jewellery items including where they were manufactured; to obtain valuation certificates from reputable jewellers when insuring; and to insist upfront that replacement is done by the original jeweller who manufactured the item if so wished.
Clients should also be made aware that some insurance companies have restrictions in their policies. For example, they may impose a limitation of insured amounts if the client is not in possession of a valid valuation certificate and many now have locked safe warranties, whereby clients must keep items such as expensive jewellery over a certain value in a locked safe when not worn.
Corrupt practices are not just found in the insurance or jewellery industries, but across all industries. However, if you make your client aware of the risks they are then able to arm themselves with all the necessary information to make sure that they do not fall foul of disreputable providers.
Losing a piece of jewellery can be traumatic, as if often tends to have sentimental as well as monetary value attached, so it is important that if it does happen, at least your client has the peace of mind of knowing that they can have the item replaced properly.
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South African women underestimate the cost of their wardrobes
Submitted by byrnie on Wed, 2011-03-16 20:31Image/Video:
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The release of Sex & the City 2 earlier this year once again highlighted the attraction of designer clothes and accessories to South Africa’s women. However, with the majority of these women vastly underestimating how much their wardrobes are actually worth, it is vital that our female clients understand the pitfalls of not insuring their wardrobes for the true cost of replacement.
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The release of Sex & the City 2 earlier this year once again highlighted the attraction of designer clothes and accessories to South Africa’s women. However, with the majority of these women vastly underestimating how much their wardrobes are actually worth, it is vital that our female clients understand the pitfalls of not insuring their wardrobes for the true cost of replacement.
The regular assessments we make at MUA of our client’s possessions have shown that about 90% of women – particularly in the high end market – significantly underestimate the cost of their wardrobes, estimating them to be just half of their actual value.
Underinsurance is not just a local trend. There seems to be a global tendency towards underinsurance in women’s wardrobes with a recent study in the UK by British insurer Liverpool Victoria revealing that the average woman in the UK only values the contents of their wardrobes at about £1,840 (R22,000). The true cost is actually around four times higher at £7,000 (R84,000).
The main cause of this stems from the fact that insurance values are calculated on the replacement cost of items, so a designer suit that would have cost your client R2 000 a few years ago, will probably now cost in the region of R10 000 to replace. This issue of replacement cost is something that the public often don’t take into consideration, and in our experience is an issue that clients need to have explained to them.
Of course, while it is quite rare that an entire wardrobe would need to be replaced, should a client suffer a break in or fire, it is vital for them to have apportioned the correct replacement value to their wardrobe to ensure everything can be replaced if necessary.
There are various tips you can employ to help clients work out the true cost of their wardrobe. One of these is to divide the clothes into sections such as business, casual, evening and sports. This should help the client to have a better idea of what clothes they actually have so that they can make a more accurate valuation. This also helps to highlight those items that one forgets about but refuses to throw away.
If your client also has a large number of expensive or designer outfits, it can be a good idea to suggest a professional valuer to assist them in the process. At MUA we provide a professional valuation service to all of our clients, so that they know exactly how much their wardrobes are worth.
It is easy to underestimate the value of a woman’s wardrobe, especially if the clothes were bought many years ago. However, by being proactive your client will end up saving thousands in the long run and will truly see the value of their broker.
Another addition to insurance is cover for their handbag and its contents. It has become quite acceptable for women to spend large amounts on expensive designer branded handbags, in line with what was spent on jewellery pieces in the past. A designer handbag can cost thousands itself, before one even assesses the value of its contents such as keys, make-up, MP3 player, cell phone and wallet.
Insuring a handbag is a relatively cheap addition to any policy but it is crucial for all women and it is a suggestion that your female clients will be hugely appreciative of should they ever have the need to make a claim.
A broker that takes the time to explain these issues and obtain a proper valuation for their client’s personal items is not only able to highlight their own worth to their client, but they also keep their customer book bulging as much as their client’s wardrobes.
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Corruption and jewellery insurance
Submitted by byrnie on Wed, 2011-03-02 00:00Image/Video:
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Find out how people fall victim to dishonest jewellers and understand how you should ensure that the replacement value you receive for the item of jewellery matches up to the original replacement value of the item.
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Find out how people fall victim to dishonest jewellers and understand how you should ensure that the replacement value you receive for the item of jewellery matches up to the original replacement value of the item.
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- 405 reads
Understanding The Jewellery Market
Submitted by Christelle on Tue, 2010-11-30 00:00Content:
Insuring jewellery against loss or theft is commonplace in South Africa. Unfortunately most consumers are unaware that the onus to insure their jewellery at accurate replacement values rests on their own shoulders.
Dex Kotze, CEO of Jenna Clifford Jewellers, says the replacement value at which one needs to insure their jewellery is directly linked to the Rand/Dollar exchange rate. The reason being that gold trades internationally in dollars and the price fluctuates on a daily basis.
“Over the long term, diamonds and other precious gemstones have proven to increase considerably in value and it is vital for the insured to guard against underinsuring assets that generally have an emotional attachment linked to them due to the receiving of jewellery as a gift from a loved one, which later becomes a family heirloom,” says Kotze.
In order for an insurer to replace an item, an authentic valuation document is required. Reputable jewellers will only issue jewellery valuations based on actual selling prices of items. Unfortunately the retail industry is rife with some retail merchants who mark up valuations to counter the discounts passed on to insurers.
Kotze says brokers and insurers should guard against the following when assessing a client’s jewellery valuation:
- Ensure there is a Rand/Dollar exchange rate on the valuation certificate
- Ensure the date of purchase or evaluation is on the valuation
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Ensure there is a proper description of the jewellery item, with;
- Specific reference to caratage and weight of gold, 18ct or 9ct
- Proper identification of precious gemstones and reference to independent laboratory certificates of diamonds
- Proper reference to the four C’s of a diamond, i.e. colour, cut, clarity and carat
- Ideally a copy of the purchase invoice should accompany the valuation certificate that is submitted to the broker
- In the event that a jeweller purely values a client’s jewellery, brokers should ensure that the jeweller that does the valuation is qualified to do so
- At retail level, not all staff who work in the jewellery industry are qualified to evaluate jewellery. Brokers should ascertain by asking questions to their clients
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- Christelle's blog
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Jenna Clifford – Special Offer
Submitted by Guest on Tue, 2010-11-30 00:00Image/Video:
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Jenna Clifford is offering a free valuation service to the clients of MUA brokers for any jewellery articles with a value in excess of R40,000.
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Jenna Clifford is offering a free valuation service to the clients of MUA brokers for any jewellery articles with a value in excess of R40,000. To combat fraud, clients will be required to take the actual jewellery to a Jenna Clifford store as valuations cannot be legitimately completed without inspection of the jewellery.
Another service supplied by Jenna Clifford is the digital capturing of the jewellery that can be submitted to the client and broker for record purposes.
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- 122 reads
