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Insurance To Protect Your Bank Locker

IamCheated.com Research Team | March 01, 2019  4:59:pm

Insurance To Protect Your Bank Locker

Many people prefer keeping valuables like gold jewelry, diamonds and important documents in bank lockers as robbery cases are on the rise. Bank locker is a facility offered by banks to customers to keep valuables safe. Bank lockers are normally placed in a strong room at the bank, with the door made of strong steel. Banks charge customers for providing the bank locker facility.

Many people assume that as valuables are kept in the bank locker, they are safe and nothing can happen to them. But, this is not actually true. Your valuables are not safe even in bank lockers. Even though there is tight security at the bank, there are many incidents of bank locker robbery in India.

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Bank locker robbery in India

You might be aware of the robbery case at Bank of Baroda’s Juninagar area branch in Navi Mumbai where burglars dug a 25-foot tunnel to reach the bank lockers and robbed valuables worth over Rs 40 Lakh that was stored in 30 of the 225 lockers.

The sad part is banks will not compensate customers for valuables stolen from bank lockers. Yes, you heard this right. As per RBI guidelines, banks have zero liability for loss of valuables in lockers. Banks are not responsible for the valuables in the locker if the locker is compromised due to robbery, rain, fire, flood, earthquake, lightning, civil commotion, war, riot or any other causes not under the control of the Bank. Customers have to keep their valuables in the lockers at their own risk.

Now, there is a solution to this problem as IFFCO Tokio General Insurance has come up with "bank locker protector policy". This is the first stand-alone bank locker insurance cover offered by any insurer. There are some insurance policies in the market which offer cover for the valuables inside a locker. But, those are part of the home insurance policy and they have certain limitations.

The main intention of launching a bank locker protector policy is to protect valuables kept in bank lockers.

The policy provides protection against various risks such as fire, earthquake, burglary, holdup, infidelity by bank staff or any act of terrorism. Along with jewelry and valuables, insured can also insure important documents kept in a locker as add-on cover. This insurance policy will be sold both as retail and a group policy for banks.

Up to a specified limit, this policy can be bought with self-declaration. Valuation report from government approved valuers is required, if the value of an individual item is more than Rs 10 Lakh and where the total sum insured exceeds Rs 40 Lakh for an individual.

This policy is very simple, easy to understand and affordable. You will be provided with the seven options of sum insured ranging from Rs 3 Lakh to Rs 40 Lakh and above. Even the premium is very affordable as you get a cover of Rs 3 Lakh for just Rs 300 and 40 Lakhs for Rs 2,500.

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In order to make a claim, the policyholders have basic documents claim form, along with supporting documents like invoices and proof.