Valuables Not Safe Even in Bank Lockers?

Published On 29 Nov 2019 By Sakshi Aggarwal

For most of us, possessing gold is a solid investment that saves us from any contingency in life. And when it comes to keeping the jewellery safe, people generally prefer banks the most. But the question is that is your jewellery even safe there? What happens if the bank faces any mishap like theft, sudden fire etc.? What will happen to your valuables in such events? 

To answer these questions, we are here to guide you about how safe bank lockers are or how your gold items can be insured.

How safe are your valuables in bank lockers?

  • Going by the RBI guidelines, it has been stated that banks are not liable for any loss of customers’ valuables kept in lockers. It makes it clear that in case any mishap like sudden fire, bank robbery, or any natural calamity occurs then in that case the banks are not liable to provide compensation to their customers.
  • Even in the locker agreement, there is nothing mentioned about the liability payment. So it is the sole responsibility of the customers to protect their valuable items by getting insurance.
  • Bank lockers are safe but what is more important is to insure the items kept inside.  

How to protect gold kept in the lockers? 

  • Banks don’t provide locker insurance to the customers. Only private players can help customers with insurance products. 
  • Many general insurance companies in India have started giving bank locker insurance under home insurance plans. 
  • Valuable and jewellery insurance is covered under a home insurance plan.
  • Such products cover valuable items in case of damage or accidental loss across the world. 
  • Some insurers like IFFCO Tokio General Insurance, Future Generali, TATA AIG, and ICICI Lombard offer valuable item insurance cover in India. 
  • Premium amount for these products varies depending upon the amount of gold you wish to keep in the locker. 

Things to Remember

  • Pertaining to the negligence of bank officials, if the customers suffer from loss of valuable items from the locker, then the bank is responsible to pay for the compensation. 
  • In case the customer comes to know that the bank is responsible for the loss of items, damage to the locker, or theft, and are refusing to compensate them, then they can visit the NCDRC (National Consumer Redressal Commission). 
  • Always possess the bills of your jewellery and other valuable items as proof. 
  • Always go through the terms and conditions to understand them properly.
  • Keep a record of items to make a claim.
  • Some insurance companies in India have introduced ‘Bank Locker Protection Policy’. With this product, one can seek protection for his/her gold against fire, natural calamity, theft, cheating by bank staff, or act of terrorism.  
  • The sum insured for these products varies between Rs. 2 Lakh to Rs. 50 Lakh or even more. 
  • The policyholders are required to pay a premium ranging between Rs. 300 to Rs. 2,500. For sum insured of above Rs. 40 Lakh, the premium is charged 0.60 for every mile or per thousand of Sum Insured.  
  • You can choose a standalone insurance product for highly valuable items. 
  • Ensure your valuable items are safe. Try protecting them from mishaps even when they are in lockers. 
  • Seek advice from your financial expert before buying any insurance product. 

What you must not forget is that even though banks don’t take responsibility for your valuables, they are still safe in banks than they are in homes. 

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