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Have you kept your gold in a bank locker? You MUST assess how safe it is

As per the RBI guidelines, banks have no liability for loss of valuables in lockers. Which clearly states that during any mishap like: bank robbery, sudden fire or any natural calamity banks are not liable to pay their customers any compensation.

Sarabjeet Kaur Sarabjeet Kaur
New Delhi Updated on: November 23, 2019 17:57 IST
bank lockers, gold bank lockers, RBI guidelines, RBI bank lockers rule, RBI, bank lockers rule, gold

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People in India are emotionally and monetary attached to gold items. For most of us, Gold is an investment to save us from any contingency in life. We also feel safe to keep it in home lockers but generally, bank lockers are what people go for. However, what if bank will face any mishap like sudden fire, theft etc? What will happen to your gold then? Who will pay for the losses? These are the questions, which we generally ask before going for any bank lockers to keep our gold safe. Therefore, we are here to guide you on how safe your bank lockers are and how you can insure your gold items. Follow the lowdown and know more about your locker safety.

How safe are our lockers?

  • As per the RBI guidelines mentioned in the year 2017, “Banks have no liability for loss of valuables in lockers”. Which clearly states that during any mishap like bank robbery, sudden fire or any natural calamity banks are not liable to pay their customers any compensation
  • The locker agreement itself does not mention any liability payment. Therefore, it is whole and sole all customers’ responsibility to take care of their valuable items by doing the insurance
  • Bank lockers are safe but the most safer option is to insure the items kept inside the locker

How to protect gold kept inside the bank lockers?

  • Banks do not provide any locker insurance to their customers. Only private players (insurance companies) can help customers with insurance policies
  • In India, there are many general insurance companies which have started to provide bank locker insurance under their home insurance or contents insurance products
  • Valuable and jewellery insurance are provided under the home insurance policy
  • These policies cover the valuable items from any damage or accidental loss anywhere in the world
  • Few insurance companies like Tata AIG,  IFFCO Tokio General Insurance, ICICI Lombard and Future Generali provide valuable item  insurance covers in India
  • The premium charges of the insurance covers depends on the amount of gold you want to keep inside the locker

Key steps to note: 

  • If due to the negligence of banks and their officials: customer suffered from loss of valuable items inside the locker, then it is the duty of the bank to pay the compensation
  • If in any case, the customer finds that banks are responsible for their loss of valuables or damage to lockers or theft, and are not paying the compensation, then the customer can approach the National Consumer Redressal Commission (NCDRC)
  • Always keep the bills of your gold and valuable items as a proof 
  • To avoid any lengthy process and litigation, always read the terms and conditions carefully
  • Keep a record of your valuable items to claim the compensation
  • There are few insurance companies which have launched their own ‘Bank Locker Protection Policy’ in India
  • With the help of Bank Locker Protection Policy, one can get the protection of gold from burglary, fire, natural calamity, cheating done by bank staff  members or act of terrorism
  • The Gold insurance policy offers a sum insured from 2 lakh to 50lakh and above 
  • The premium is charged from minimum Rs 300 to 2,500 and above 40 lakh the premium is decided by 0.60 per mile or per thousand of the sum insured 
  • One can also opt for single insurance or standalone insurance policy cover for high-value jewellery and items
  • Always try to keep your valuable items safe and to protect from any mishap insure it even inside the bank lockers
  • Before going for any policy don’t forget to take the advice of your financial expert
Last but not the least banks are still safe to keep your gold. So, go ahead keep your valuable items in lockers but try to insure them first. 

Also Read: Gold Buyers Attention! Jewellery purchase rule set to change from 1st Jan. All you need to know

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