What is insurable jewelry?
Courtesy of SWA DiamondsSmashing the Guinness World Record for "Most Diamonds Set in One Ring," this winning ring is set with a remarkable 24,679 diamonds.
The striking ring comes from jewelry manufacturer SWA Diamonds, based in Kerala, India. Previous winners of this title were also from India, which is a world leader in diamond processing and also has one of the fastest-growing markets for diamond jewelry.
The piece is called "Touch of Ami." The word 'Ami' means immortality in Sanskrit. The ring's design was inspired by the pink oyster mushroom, which is said to represent immortality and longevity.
The manufacturer even produced a short video on how the ring was made, taking the viewer through sketches, computer-aided design, model-making, casting, and assembling. The intricate detailing was made by pouring liquid gold into a mold of 41 mushroom-like petals, then placing the individual diamonds on both sides of each petal by hand.
Courtesy of SWA DiamondsIn accordance with Guinness's guidelines, all the diamonds must be from producers that certify the stones are conflict-free mined diamonds. IGI, the International Gemological Institute Lab, was hired to examine the piece to ensure its quality and assign a value. Gemologists counted the diamonds and evaluated each as to color, clarity, carat weight, and cutting style, though these qualities were not published.
The ring's value was set at $95,243.
About insurance
Jewelry is generally considered to be ornaments that people wear. Is this piece meant to be worn?
Courtesy of SWA DiamondsJust how big is a ring that holds more than twenty-four thousand diamonds? The diamond-studded band fits on a finger, but the spread above is as wide as a hand. The ring weighs in at three-quarters of a pound, quite a burden for a single finger to carry on a fancy night out.
This ring was more likely meant to win the publicity prize by setting a record. A press notice from SWA said the ring "marks the triumph of entrepreneurship in the diamond sector of our state [Kerala, in southern India]."
According to the Guinness website, the jeweler designed the ring "to bring visibility to the brand and encourage more investment within the district, which is known for its skilled jewelry artisans."
Rather than being jewelry intended for wearing, it is more a showpiece, a stunning example of design and skill. Indeed, the ring's value would be due to its craftsmanship and uniqueness, rather than to the worth of its many tiny diamonds and its gold.
This ring would appropriately be insured like a work of art, under agreed value.
Of related interest are other high-value gem-encrusted items that consumers might think would be insured as jewelry. For an interesting read, check out It's Art—But Is It Jewelry?
FOR AGENTS & UNDERWRITERS
Appraising unique pieces requires expertise beyond that of the average graduate gemologist. You should get an appraisal from someone who deals in such objects, who can judge the craftsmanship, who recognizes the work of various producers, and who knows the market.
For pieces that are unique and irreplaceable, consider writing a valued contract.
FOR ADJUSTERS
If a unique piece is a total loss, you have few options other than issuing a check.
If a unique piece is damaged, have it examined by an expert. Some kinds of damage can be repaired. In some cases, the piece would lose value if repaired. Only an expert can make this call.
Even if you pay it as a total loss, always take possession of the salvage. You may be able to have the piece repaired, then sell it. Or you may offer it for sale to an expert, who will assume the risk, repair it, and sell it for his own profit. Or the piece may be irreparably damaged but have component gems or metals that still have value.
If a piece has sentimental value, you could (after paying for a total loss) offer to return the damaged piece to the insured for a determined recovery amount. The amount may be little more than the material's scrap price, but the transaction will gain the policyholder's good will. Be sure to have an expert establish a fair as-is price.
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