Kochi, Nov 23 (IANS): Gold loan NBFC Muthoot Finance has tied up with Bajaj Allianz General Insurance to provide insurance on gold jewellery as part of their new initiative - "Muthoot Gold Shield", which is backed and powered by insurer's Group Affinity All Risk policy.

Providing insurance coverage of gold jewellery for individuals, the policy is designed to provide insurance coverage of gold jewellery articles for customers of the company at the time of closure of a gold loan and the release of gold ornaments. It will provide insurance coverage to the customers of Muthoot Finance as a loyalty product.

Companies typically provide gold jewellery insurance as part of home insurance along with insurance of other articles at home. Normally, the percentage of insurance coverage for gold jewellery is restricted by some insurance companies to a maximum of 15 per cent of the total home insurance policy sum insured.

The new policy is a standalone gold jewellery insurance offering which covers burglary, robbery, theft from insured person's home, loss-in-transit and 13 other disasters (natural calamities).

George Alexander Muthoot, Managing Director, Muthoot Finance said: "Going by the initial overwhelming response received for this insurance policy, it has been widely accepted by the customers of the company. As part of our ongoing customer loyalty programme and social commitment, we are providing customers insurance coverage with an objective to build confidence and help move ahead in life without any fear."