Bank locker insurance is crucial as banks may not fully compensate for damage or loss due to fire
We frequently believe that our possessions stored in bank lockers are totally secure. We believe that the bank will reimburse us if we lose, steal, or damage anything in our bank lockers, but this isn’t the case. theft, or natural calamities. Learn why you should protect your valuables today.
In actuality, banks do not bear complete liability for the contents of lockers. This is especially crucial if your locker contains valuable papers, jewelry, or gold.
The lender only offers a little amount of compensation in the event that an unfavorable event, such as a fire or flood, happens at the bank and damages the contents of your locker.
The bank will only pay up to 100 times the annual locker rent in accordance with RBI regulations. For instance, you will only be compensated up to ₹2 lakh if your locker rent is ₹2,000 per year.
The value of the things stored in lockers is typically far greater than this, though. Because of this, locker insurance is required.
Your capital is shielded from all kinds of damages by this insurance. The assurance that your hard-earned possessions will be completely safeguarded in the event of an incident is another comfort.
Why don’t banks compensate customers for lost or damaged belongings stored in lockers?
A: The reason behind this is that banks are unaware of the contents of the locker. Banks do not examine the contents of the chest because it is regarded as the customer’s private property.
As a result, Financial Institutions (FIs) are unable to determine the objects’ worth or assume liability for them.
According to RBI guidelines, the lender is liable for reimbursement up to 100 times the yearly locker fee if the loss results from the bank’s carelessness, fault, or staff fraud.
Which objects are insured and which can be stored in lockers?
- You can store valuables and vital papers in the chest. Nonetheless, a number of objects are prohibited from being stored in the lockers. Let’s discover what those are:
- Customers must make their own insurance arrangements because banks do not insure the contents of lockers.
- Jewelry, papers, and other valuables stored in lockers are protected from theft, fire, and natural calamities by the policy.
- Bank locker insurance is provided by a number of insurance providers. These policies are offered to banks in both group and individual (retail) forms.
- Policies with coverage options ranging from ₹3 lakh to ₹40 lakh or more are available for purchase by customers.
- A valuation report from a government-approved valuer is required if the things stored in the locker are worth more than ₹10 lakh or if the insurance sum is more than ₹40 lakh.
- Customers must make their own insurance arrangements because banks do not insure the contents of lockers.
- Jewelry, papers, and other valuables stored in lockers are protected from theft, fire, and natural calamities by the policy.
- Bank locker insurance is provided by a number of insurance providers. These policies are offered to banks in both group and individual (retail) forms.
- Policies with coverage options ranging from ₹3 lakh to ₹40 lakh or more are available for purchase by customers.
- A valuation report from a government-approved valuer is required if the things stored in the locker are worth more than ₹10 lakh or if the insurance sum is more than ₹40 lakh.
Options for Group Policies
Numerous banks provide their clients with discounted group insurance options.
advantageous for people who find personal insurance burdensome or costly
In order to save time, insurance companies now provide digital claim procedures.
