Cover Your Assets: Have You Insured Your Watches?

For the elite few who can afford luxury watches from the likes of Rolex, Omega, and Cartier, flaunting these status symbols seems like a no-brainer. But what if you knew just wearing your prized Panerai Luminor Marina could cost you a small fortune?

India's watch enthusiasts don't realize the dangers of keeping their precious tickers uninsured. But the numbers paint a worrying picture. For watch connoisseurs and collectors, a luxury timepiece is not just a way to tell time - it is a prized possession, sometimes even an heirloom passed down through generations. According to a 2019 survey by Deloitte, the average Indian luxury consumer owns 2-3 watches in the price range of Rs. 10-50 lakhs. Yet, very few opt for insurance. Data from policy providers indicates less than 15% of luxury watch owners in India have separate coverage for their timepieces. This leaves a staggering number of expensive watches uninsured against theft, damage, or loss.

Watches are prime targets for petty thieves. Delhi Police data shows over 1800 watch thefts were reported in 2021. Popular luxury brands like Rolex, Cartier, and Omega retail starting ₹4 lakhs to over ₹1 crore. Losing one of these to theft can burn a gaping hole in your pocket without insurance.

Freak accidents also happen more often than expected. A 2022 survey by the All India Gem and Jewellery Association revealed that 22% of Indian watch owners have experienced accidental damage. With specialty insurance, repairs and replacements due to drops, dents, and broken straps have zero out-of-pocket costs.

The main deterrent seems to be a lack of awareness. Many believe their regular home or contents insurance is sufficient. But in reality, high-value wristwatches need specialized coverage with higher loss settlement limits. Home insurance caps may only cover a fraction of the watch's actual value.

Specialized watch insurance offers extensive protection tailored to the needs of collectors and aficionados. Policies provide coverage for:

• Accidental damage from drops, dents, broken bands, etc. This is the most common type of damage.
• Theft - Watches are a prime target for thieves. Coverage includes theft from one's person, home, or while in transit.
• Loss - Whether you left your $50,000 Patek Philippe at the airport or had it fall out of your pocket, you're covered.
• Worldwide protection - Coverage extends globally so your watch is protected wherever you travel.
• Full replacement value - No caps on claim settlement up to the purchase value of the watch.
• No depreciation - You receive the full current value, not a devalued amount.

In India, specialty luxury watch insurance is offered by a small handful of providers like Tata AIG, HDFC Ergo, Reliance General, and Optima Secure. Premiums vary from 2-4% based on the value of the watch and coverage options selected.

For example, you can get a Standard Plan from HDFC Ergo covering burglary and theft for a Rolex DateJust worth ₹6 lakhs for an annual premium of ₹14,400. For more comprehensive coverage against loss, damage, and worldwide protection, Optima Secure offers premium policies starting ₹45,000 annually for watches over ₹10 lakhs.

When comparing plans, key aspects to look for are worldwide coverage, zero depreciation, and no deduction for parts like straps and batteries. The promptness of claim settlement is also crucial. Optima Secure promises to process claims within 48 hours, while HDFC Ergo guarantees settlement in a maximum of 7 working days.

It's also important to read policy documents carefully and assess factors like claim limits and exclusions. For instance, some insurers may cap coverage for theft at ₹10 lakhs under their base plan. Make sure to choose appropriate add-ons and enhanced plans for pricier watches.

Don't make the mistake of thinking it's covered under your home policy. The peace of mind of knowing your prized possession is protected against all eventualities is absolutely worth the premium. Trust me, you'll sleep easier at night!