Kept Gold in Bank Locker? If Stolen, Bank Pays Only 100x Rent. Why You Need 'Jewellery Insurance'

Kept Gold in Bank Locker?

Indian families trust Bank Lockers blindly. We put our wedding jewellery, gold bars, and property papers in that steel box, thinking it is the safest place on earth.

But what if the bank gets robbed? Or the building collapses due to an earthquake or fire? Will the bank reimburse you for your ₹50 Lakhs worth of gold?

The shocking answer is NO.

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The RBI Rule ( Revised Guidelines)

The Reserve Bank of India (RBI) has implemented strict guidelines regarding Safe Deposit Lockers. While it improved security, it also set a clear Liability Limit.

• The Limit: In case of fire, theft, burglary, or building collapse due to the bank's negligence, the bank's liability is capped at 100 times the Annual Locker Rent.
• The Math: If you pay ₹4,000 rent per year, the bank will pay you a maximum of ₹4 Lakhs (4,000 x 100).

If you had ₹50 Lakhs of gold inside? You just lost ₹46 Lakhs. The bank is legally NOT responsible for the rest.

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"Act of God" Clause: Zero Liability

It gets worse. If the loss is due to natural calamities like earthquakes, floods, lightning, or storms ("Act of God"), the bank is NOT liable to pay a single rupee.

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The Solution: Jewellery Insurance (All-Risk Policy)

Since you cannot rely on the bank for full protection, you must insure the contents yourself.

You can buy a standalone "Gold & Jewellery Insurance" policy or add an "All-Risk Cover" to your existing Home Insurance.

💎 Policy Features & Requirements

• Cost: Approx ₹1,000 for every ₹1 Lakh coverage (approx 1%).
• Coverage: It covers theft from your home, bank locker, and even while you are wearing it at a wedding (Chain Snatching).
• Critical Requirement: For high-value items (usually above ₹5 Lakhs), you MUST submit a Valuation Report from a government-approved valuer. Without this, your claim will be rejected.

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Don't Rely on the Steel Box

The bank locker is for physical safety, not financial safety.

Don't assume the bank is guarding your wealth. Buy a separate insurance policy today (and get that Valuation Certificate) so that even if the bank burns down, your daughter's wedding jewellery remains financially secure.

General Advice Warning: The information provided in this article is based on RBI notifications and standard insurance practices effective as of 2026. Insurance premiums and policy terms vary by insurer (e.g., Tata AIG, HDFC Ergo, New India Assurance). Please read the policy wording carefully, especially the "Exclusions" section, before purchasing.