Do You Need To Insure The Contents Of Your Bank Locker

Bank lockers are the place where most of us keep jewellery and other expensive items for safety. But what happens if there is a theft in the bank? Or if the contents are damaged due to a natural calamity? The chances of it are slim, but there is still a possibility.

The contents of a bank locker are not insured by the bank. “However, as per the latest mandate from the Reserve Bank of India, banks are responsible for any damage or loss of locker contents due to incidents such as fire, theft, burglary, robbery, dacoity, terrorism, and infidelity of bank employees, the bank must compensate customers with an amount equivalent to one hundred times the current locker rent,” says Gurdeep Singh Batra, head – property UW (E&S), risk engg, global accounts and co-insurance, Bajaj Allianz General Insurance.

Aside from these circumstances, the bank does not provide any additional compensation for lost or damaged items, and the lockers themselves are not insured.

Loss or Damage To Content Due To Natural Calamities Not Covered

Also, the bank shall not be liable for any loss or damage to the contents of the locker arising from natural calamities like earthquakes, floods, lightning, and thunderstorms or any act that is attributable to the sole fault or negligence of the customer.

If the value of items kept in the locker exceeds the liability of the bank, if applicable, then the customer will have to bear the same. Insurance will be helpful in such cases for full protection,” says Hari Radhakrishnan, an expert at the Insurance Brokers Association of India (IBAI).

“It is important to note that, according to revised guidelines, you are prohibited from storing cash and currency in the locker,” says Batra.

However, you can safely store valuable items such as jewellery, important documents, birth or marriage certificates, insurance policies, saving bonds, and other confidential items in the bank locker.

“Some insurance companies offer home insurance policies with an extension to cover valuables, including jewellery, and valuable assets stored in bank lockers. However, valuables/jewellery in bank locker are covered up to the agreed sum insured,” says Batra. For this, you need to give details of its locker and contents.

To sum up, insuring the contents of your bank locker may not be high on your priority list, but it is an option you may consider.