Securing valuables in your bank locker is a tough job
While banks have security and safety systems in place, you need to insure the valuables to be on the safe side
It’s well-known that banks don’t take responsibility if there is a burglary and robbers loot the lockers belonging to customers. In their defence, banks say that as they don’t know the content of the locker, they are, therefore, not liable.. When an individual takes a locker facility, he is made to sign an agreement which states that the bank will not be responsible for any loss or damage to the contents of a locker, thereby absolving the bank of all liabilities.
"The relationship between the two is like landlord and tenant. The landlord is not responsible for theft inside the house of a tenant,” says Tarun Mathur, chief business officer - general insurance, Policybazaar.com.
Bank burglaries are not uncommon, though the banking regulator – the Reserve Bank of India (RBI) – doesn’t share the data publicly. Last year, then Minister of State for Finance Santosh Kumar Gangwar said in Parliament that nearly ~1.8 billion was lost in 2,632 cases of robbery, theft, dacoity and burglaries at 51 banks between the financial years 2014-15 and 2016-17.
“According to an RBI mandate, banks are required to take necessary precautions for the protection of lockers. These typically include well-equipped alarm systems, irongated rooms, a safety guard and electronic surveillance via CCTV in and around the place,” says Adhil Shetty, co-founder and CEO of BankBazaar.
Banks' safety measures: Banks need to take security and safety measures right from when they are setting up a branch, especially one with lockers and/or vaults. RBI has laid down specifications for it — from the selection of the location of a branch to even the size of the entrance. It has even directed banks to give lesser weight to commercial considerations over security and safety. As banks are entrusted with the task of safeguarding public wealth, they have multiple layers of security-in-place, such as quality locks, strong room, electronic surveillance, alarm systems, and internal and external audit to ensure consistent quality of service.
Robberies usually happen over the weekend or long public holidays, when the branch is closed for longer hours. Banks, therefore, need to be in touch with the local police station to step up patrolling in the night around the bank branch. “Much of the responsibility lies on the branch manager to ensure security and safety. They need to, for example, security systems every day and ensure their proper functioning, keep in touch with local police, and so on,” says the branch manager of a Mumbai-based branch of Indian Bank. While a bank may take the required precautions, burglars still find ways to break-in. A few months ago, robbers dug a 25-feet long tunnel to enter into Bank of Baroda’s Navi Mumbai branch over the weekend. They stole gold and cash from about 27 lockers.
Protecting your valuables: There’s little a customer can do prevent robbery. The chances of recovery are also low as only you are aware of the locker’s content. Police and banks rely on the Closed Circuit Television System (CCTV) footage during the robbery to verify a customer’s claim. But there are a few things you can do to ensure that your valuables are safe and in case of a robbery, your claim is verifiable.
A locker, by itself, does not ensure the safety of goods. It’s the safety infrastructure created by the bank that makes it secure. Avoid bank branches with locker facility that share boundaries with a house or office. Preferably, opt for a bank branch that is a standalone structure. Also, ensure that security systems such as CCTV camera are in place and if there are ventilation ducts in the locker room facility, those are well covered. Always open your locker after the bank employee, who accompanies you to the vault, leaves the place. Also, ensure the locker is locked properly before you leave the vault.
As far as possible, keep the invoice of the articles kept in the locker with you. Also, maintain inventory copies, both in the locker and at your home. It will help to calculate the value of the contents and claim your compensation in case any item goes missing. For documents in the locker, wherever possible, get them laminated and keep photocopies at your home.
Insure your valuables: For your valuables such as gold and jewellery, you can also opt for a home insurance product, which also covers valuables inside a bank locker. "But be sure to understand the caveats in these policies as they may provide insurance for specific items," says Mathur. These plans cover only valuables such as precious metal jewellery (including watches), diamonds, work of art and curios. If you have important papers or cash or any other valuables, there’s no insurance available.
The premium cost for the jewellery and valuables depends on the proposed value insured. If the sum insured for jewellery and other valuables is ~500,000, the premium payable would be ~4,000-5,000. Taxes will be extra.