Page 38 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 5 | Issue 09 | September 2025
B ullion W orld | V olume 5 | I ssue 09 | S ep t ember 2025
Blockchain-based provenance systems offer: a paradox where sovereignty undermines global
• Tamper-proof records of every step in a bullion’s coordination.
journey, from mine to market.
• Smart contracts that automatically enforce To mitigate this, insurers must engage regulators in
insurance terms if key conditions are breached-no proactive diplomacy, advocating for interoperable
human mediation required. standards and mutual recognition of high-security
• Transparency across jurisdictions, helping infrastructure.
insurers and regulators assess risk factors without
relying on fragmented documentation. Toward a Smarter, Collaborative
Security Paradigm
Luxury groups and bullion dealers in Switzerland and The future of bullion insurance lies in collaborative
Dubai have already embraced these Luxury groups intelligence:
and bullion dealers in Switzerland and Dubai have • Partnerships between insurers, governments,
embraced these tools to trace bars and reduce fraud in logistics providers, and blockchain networks.
global trading hubs. • AI analytics to flag route anomalies and
suspicious behavior.
Case Studies related to India • IoT sensors in vaults and transports for predictive

Mumbai Logistics Heist (2019): An official absconded maintenance and tamper alerts.
with 11 kg of gold jewellery worth ₹3.5 crore. The • Cross-border databases accessible to vetted
jeweller’s block insurance didn’t cover employee security agencies.
dishonesty or unattended vehicles. Though most gold
was recovered, the claim was denied. Insurance must evolve into an active risk management
Lesson: Jewellers now demand fidelity insurance and ecosystem-where loss is not just covered but
carrier liability policies to guard against insider threats. prevented through data sharing, simulation training,
and public-private vigilance.
Jaipur Exhibition Losses: Jewellery vanished
overnight during a high-profile exhibition. Lapses in
surveillance and lack of third-party liability coverage
led insurers to deny claims citing “gross negligence.”
Lesson: Event-specific insurance with real-time
monitoring is now essential.
The Gold Standard of
Tomorrow
Chennai Vault Breach (2021): Hackers disabled
biometric systems and CCTV feeds at a private vault.
No theft occurred, but panic ensued. Gold has always symbolized
Lesson: Vault insurance now includes cyber-physical security and permanence. But
hybrid coverage to protect digital infrastructure. in a world fractured by firewalls
and rival spheres of influence,

These Indian examples highlight the urgent need for it needs protection rooted in
customized, tech-integrated insurance solutions that digital foresight, cross-sector
reflect local realities while aligning with global best partnerships, and adaptive
practices insurance models. Bullion
insurance today is no longer

Regulatory Fragmentation: just about metal—it’s about
A Double-Edged Sword meaning. It’s a declaration that
Global regulators are racing to adapt, but efforts value deserves vigilance, even in
remain disjointed. Varying definitions of “insured the shadows of sovereignty.
bullion,” conflicting transport laws, and inconsistent
reporting standards hinder multinational coverage.
Some governments resist international blockchain
platforms, fearing loss of jurisdictional control-creating

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