Replacing a diamond ring can be an expensive prospect, but that’s the reality for the majority of Australians who don’t insure their heirlooms.
Diamond engagement rings are a big deal for many Australians, but very few are protected from would-be thieves.
Insuring diamond rings is expensive, which is why 44 per cent of Australians’ diamond rings remain uninsured. Of those that are insured, 70 per cent are inadequately insured.
That is, the rings are insured under a household policy that, in many cases, leaves the diamond vulnerable.
These policies do not cover rings taken out of the home, and most policies do not cover the expense of a diamond ring replacement.
The reason behind the expense is because untraceable diamonds are easily stolen and then on-sold at a higher price, but there is now a solution.
Diamond rings in Australia now contain a laser code that is etched in the diamond.
The code makes the rings a “low risk” theft item because they are easily traceable by police.
Certified Diamond Insurance (CDI) etches the secret antitheft serial number onto the diamonds and makes them traceable.
The insurance comes from a partnership between the Diamond Certification Laboratory of Australia and the Woodina Underwiting Agency.
CDI founding partner and head of speciality risks at Woodina, Isaac Garson, said the code was a game-changer.
“We are putting thieves and fraudsters on notice,” he said.
Now the CDI has begun work on a national database to return stolen or lost rings to their rightful owners.
“If they steal a certified diamond ring insured with CDI, it will be much more difficult to sell because the diamond’s unique ‘fingerprint’ is traceable and would be registered on a central database,” Mr Garson said.
This decreases a ring’s value on the black market as it is more difficult to move, but many older rings do not have the code.
“Many older engagement rings do not have this vital ‘fingerprint’ that make diamonds traceable,” Mr Garson said.
Mr Garson said families with expensive diamond heirlooms should get a diamond ring certification in their annual diamond check-up.
“Just like cars need an annual service to make them roadworthy so too do diamond rings,” he said.