What does “All Risk” insurance cover of valuables mean?
I once came across a newspaper report of a well known insurance company that refused to pay compensation for the theft of an expensive watch.
Their insurance policy stated clearly that theft of insured item must occur while the item is being worn.
I don’t know how your watch will get stolen if you are wearing it and it doesn’t take a person with an IQ of 60 and below to see the event that your watch will get stolen when you are wearing it is next to zero.
This type of insurance cover does lives up to its name of all risk, i.e. people taking up this type of policy cover stands all risk of giving their money to the insurance company concerned simply because there is no chance of that event occurring. It is like insuring yourself from dying from accidents when you are already dead.
In addition, the same policy does not cover theft in the house, even if the item was locked.
Don’t think that being robbed will result in compensation from this policy because this type of event does not fall under the definition of theft.
Why pay premiums for a policy cover when the probability of “accidents covered” is zero?
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