Bank lockers are preferred to keep valuable items like property documents and jewellery, to protect them from theft at the place of residence. However, banks do not take any responsibility on loss or damage of contents in the locker as one is not required to make disclosures on the contents deposited at the time of opting for the service.
While bank lockers are safer than at your residence due to the high security provided to secure the premises, you could go for an insurance policy for the contents in your bank lockers that are offered by many general insurance players in the market.
These could be standalone policies that exclusively insure the contents in a bank locker, like the one offered by IFFCO Tokio General Insurance or could be packed with home insurance policies.
Home insurance policies come with additional features to insure jewellery, whether it is placed in a locker, at your home or even if you are wearing it. The premium on these policies could be as high as one percent of the sum assured.
Exclusive bank locker insurance will cover against burglary, fire, earthquake, infidelity of a bank employer or an act of terrorism.
Should you get insurance for contents in your bank locker?
Ideally, the risk of theft is higher outside the bank's premises, which means that the decision to buy a cover or not for your bank locker depends on what is inside it.
If you have placed jewellery in it, you opt for a comprehensive policy that insures the house as well as the jewellery, no matter where it was lost. It serves a better purpose as the risks of theft are higher when jewellery is at home or outside. The sum assured on these may, however, be lower than that of a bank locker insurance policy.
If the contents inside the locker are very valuable, you could go for a standalone option.
One should also note the a higher coverage, generally Rs 40 lakh or above comes with a high premium burden.