Will Insurance Replace a Lost Diamond from An Engagement Ring?

An engagement ring is something most women cherish for their whole life. It is one of the most special pieces of jewellery, as it represents you and your partner’s commitment. Traditionally, engagement rings include a costly, shiny diamond held by a gold or silver ring band. However, what if, one day, the diamond is lost?

A lost diamond from an engagement ring is unfortunately common and devastating. Shock, stress, anxiety, and pure sadness follow the incident. Sadly, these accidents happen, and you shouldn’t be ashamed of them.

Replacing a diamond can be extremely costly, but it must be done. Asset insurance is a perfect solution for such accidents. The case study will demonstrate that every engagement ring should be insured under asset insurance in the event of a lost diamond.

Client Problem – Lost Diamond on Engagement Ring

Our client is a young, newly engaged couple in Hong Kong. The proposal featured a 2-carat diamond set in an 18-karat gold engagement ring. However, two weeks after the proposal, the fiancée was getting back from an afternoon event and noticed her diamond was missing. 

The diamond must have fallen off either on the way to the event, during, or on the way back. This could happen to anyone at any point, even years into the marriage. 

She instantly, in shock, informed her partner, who called the event venue and retraced their steps. Unfortunately, the fiancée did not know when she lost it, nor when she last saw it.

The lost diamond caused the bride-to-be a lot of stress and grief. They knew replacing the diamond would cost them a great deal, especially in Hong Kong. They spent hours thinking and searching – till they recalled the fiancé had insured the ring when he bought it.

How Does Asset Insurance Cover Lost Diamonds and Engagement Ring Repair?

Thankfully, couples can purchase asset insurance(jewellery insurance) to cover all jewellery, including parts. Therefore, a lost diamond will be covered with the proper documents (diamond licence and receipt). The insurance will reimburse the cost of replacement and additional fixture fees.

The insurance will also cover if the full engagement ring is lost or even damaged. However, policyholders need to provide police reports and appropriate proof. As there is always a chance of fraudulent claims. 

Hence, with asset insurance, the couple got the same quality new diamond fitted to the current ring.

The insurance provided the following costs:

Lost Diamond:

• HKD 30,000

• Fixture costs: HKD 5,000

Total costs reimbursed: HKD 35,000

The repayment cost helped the couple move on from the crisis. We are sure the fiancée will be a bit too careful and keep checking her engagement ring condition for the next few months. However, these disasters could happen to anyone and any jewellery asset. 

In addition, if one finds the lost diamond after the claim is complete, one must inform the insurance company (immediately!). Not telling the insurance company will be counted as insurance fraud and is a criminal offence, which can lead to jail time.

What Else Does Asset Insurance Provide?

Asset insurance has many benefits and purposes, and can be bought for any valuable asset. For example, many clients purchase the policy for their cameras, luxury watches, art, or even antique collections.

The insurance will cover assets if damaged, lost or stolen. Additionally, the insurance company can provide expert connections to policyholders. For instance, in this case, the insurance could connect the couple to an expert professional who replaces lost diamonds and helps fix them.

The insurance company can also provide a free expert appraisal, which should be done every few years to get the accurate value of an asset. Before making a claim, policyholders need to be sure the asset is honestly lost and have tried their best to find it.

Lost Diamond Case Conclusion

A lost diamond from an engagement ring can be devastating and may seem like the end of the world. Although it can occur to anyone and anywhere, it can happen when you wash your hands, at an event, while travelling, exercising, and so much more.

Many fear wearing their ring often in case something happens to it, which is saddening – you should be enjoying and showing it off every moment. Asset insurance allows this.

When insured, you do not need to fear wearing your engagement ring or any other jewellery. The insurance provides peace of mind when enjoying beautiful jewellery. At the same time, this doesn’t mean you can be careless, but it will be covered if something happens.

Asset insurance can quickly and efficiently resolve a lost diamond, so couples can live happily ever after.

To learn more about asset insurance and get the best coverage for your engagement ring, contact Red Asia Insurance.