Education


INTRODUCTION

The jewellery claims evaluation process can be highly confusing. There are a number of things to be considered to determine an accurate and fair replacement cost. We at 24 Karat are confident that by using this guide, as a tool, to obtain the necessary information, you will save your insurance firm both time and money.

JEWELLERY CLAIM PROCESS

Jewellery claims can be handled with confidence when all parties involved understand the process.

  1. THE INSURED: is entitled to receive what they are allowed to under the terms of the policy “no more, no less”.
  2. THE JEWELLER: is to quote and replace, if required, jewellery, based on accurate and detailed information submitted to the insurer.
  3. THE INSURER: confirms the replacement of jewellery or establishes an amount of a cash settlement.

THE JEWELLERS ASSESSMENT

  • SCHEDULED ITEMS: All scheduled items should have an appraisal but unfortunately many appraisals are inaccurate, out dated or even incomplete.
  • ENHANCED CLAIMS: When the insured is asked to get two estimates and is not recommended to an approved jeweller, two things could possibly happen:
    1. The insured may enhance their claim by seeing items they would like to have, opposed to items that were actually lost or stolen, or
    2. The jeweller may also co-operate with the insured by maximizing  the loss to the policy limit.
  • NO RECEIPTS, NO APPRAISALS, AND NO PICTURES: Many claims have at least a few items that come from the insured’s memory. A qualified jeweller that you trust and have a relationship with, knows that proper questions and the order in which to ask them. This is very important and protects your company against fraudulent claims.

KEY EVALUATION QUESTIONS

WATCHES:

  • Battery, manual or self winding
  • Metal strap or leather
  • Stainless steel, gold plated, karat gold
  • Manufacturer, model number
  • Purchased when, where, original cost.

PEARLS, GEMSTONES, SEMI-PRECIOUS STONES:

  • Shaped of the stone (oval, round, marquis and emerald cut)
  • Colour and visible inclusions
  • Number of gem stones
  • Style of setting (claw set, bezel set, channel set)
  • Purchased when, where, original cost

EARRINGS:

  • Precious metal or costume
  • Karat and colour of gold
  • Style (hoops or studs, etc.)
  • Size (solid or hollow)
  • If stones involved (type, how many, size)
  • Approximate gram weight
  • Purchased when, where, original cost

RINGS:

  • Precious metal or costume
  • Karat and colour of gold
  • Men’s, ladies, child’s
  • Style of ring (signet, wedding band, cluster, etc.)
  • Stones (type, how many, size)
  • Approximate gram weight
  • Purchased when, where, original cost

NECKLACES & BRACELETS:

  • Precious metal or costume
  • Karat and colour of gold
  • Width of item
  • Hollow or solid
  • Men’s, ladies or child’s
  • The style of link
  • If stones are involved (type of stone, how many, size)
  • Length of item
  • Approximate gram weight
  • Purchased when, where, original cost

DIAMONDS:

  • Cut
  • Colour
  • Clarity
  • Carat weight

THE QUALITY OF A DIAMOND IS ASSESSED IN 4 WAYS

CUT

By the beginning of this century, the art of cutting diamonds had been so refined that a precise mathematical formula was developed. It called for most diamonds to be cut with 58 facets; each placed at a precise angle to the other. It is the work of a master cutter that allows the diamond to be cut in such a way as to permit the maximum amount to light to be reflected through the diamond and a good cut, or make, has more scintillation, more sparkle.

COLOUR

Totally colourless diamonds are very rare and represent the highest colour grade because it is the totally colourless diamond that acts as a prism, allowing light to pass effortlessly though the diamond and be transformed into rainbows of colour. Diamonds are occasionally recovered with a strong bright colour-green, red, blue or amber. These fancy colour diamonds, when large, are collector’s items-fetching commensurate prices.

CLARITY

Refers to the degree to which a diamond is free of interior or exterior blemishes, or inclusions.  Diamonds, more than any other gemstone, have the capability to produce the maximum amount of brilliance. A diamond that is virtually free of inclusions (commonly called flaws) is of the highest quality for nothing interferes with the passage of light through the diamond. To determine a diamond’s clarity it is viewed under a 10-power magnification by a trained eye. Minute inclusions neither mar its beauty nor endanger its durability.

CARAT-WEIGHT

As with all precious stones, the weight and therefore the size of the diamond is expressed in carats. The carat originated in a natural unity of weight: the seeds of the carob tree (keration). Diamonds were traditionally weighted against these seeds until the system was standardized and one carat was fixed at 200 milligrams (1/5 of a gram).

One carat is divided into 100 “points” so that a diamond of 150 points weighs 1.5 carats. Size is the most obvious factor in determining the value of a diamond. Two diamonds of equal size can have very unequal values, depending on their quality.

Diamonds of high quality can be found in all size ranges

SALVAGE & DAMAGE JEWELLERY PROCESS

PRECIOUS AND SEMI-PRECOUS GEMSTONES

A qualified jeweller should examine the damaged jewellery, to provide an accurate cost of replacement and/or salvage price.

PROCEDURES:

  • Insurance company or insured will package & seal salvage items for courier, then call jeweller to arrange for delivery or pick up.
  • Jeweller will personally pick or provides courier service (with insurance) on the package salvage items.
  • Jeweller will fill out Salvage/Quote Form and fax to insurance company.
  • The insurance company upon receiving the Salvage/Quote Form will approve or decline and inform jeweller.
  • It the jeweller is not doing the replacement or purchasing the salvage they will return items to insurance company by courier or deliver personally.

Note: When jewellery is damaged by fire it can often be cleaned and repaired instead of being replaced.

EXAMPLE OF A POOR CERTIFICATE OF APPRAISAL

EXAMPLE OF A GOOD CERTIFICATE OF APPRAISAL

Manufacturing Process of a Ring

1 Hand Drawn Sketch
a. Meet with the customer
b. Drawing made based on a verbal description
c. Sizes of stones are determined
2 Hand Carved Wax
d. Hand carves wax according to the picture.
e. Second appointment with client to view.
f. Make any final changes.
3 Rough Casting
g. Weigh wax
h. Determine the amount of gold (i.e. 10kt, 14kt, etc.)
i. Bake wax to perform lost wax process.
4 Finished Polished Casting
j. File rough casting
k. Buff and Polish
l. Solder settings
5 Finished Product
m. Set stones
n. Final polish
o. Write appraisal

Hamilton's Custom Jeweller