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IFFCO Tokio General Insurance launches Bank Locker Cover; Should you go for it?

Priyadarshini Maji
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IFFCO Tokio General Insurance has launched ‘bank locker protector policy’, which is claimed to be the first stand-alone bank locker cover offered by any insurance company. The plan is to protect the contents of a bank locker such as jewelry, title documents, and other valuables.

A few other insurance policies such as Bajaj Allianz’s My Home Insurance All Risk Policy and Royal Sundaram’s Gruh Suraksha Plan provide cover for valuables inside a locker, but it comes as part of a home insurance policy. These policies also come with their own caveats and limits.

Bank lockers are considered to be the best and safest place for valuables. However, despite the tight security, there have been recent incidences of burglary in the country. Earlier last year, for instance, valuables worth Rs 2.8 crore were stolen by thieves from the lockers of a branch of Bank of Baroda. In case of such unforeseen incidents, locker hiring agreement does not provide any compensation. This type of insurance cover bridges the gap and protects valuables stored in a bank locker.

IFFCO Tokio’s bank locker protector policy will provide cover against various risks such as fire, burglary, earthquake, infidelity by bank staff, hold up, or any act of terrorism.

The policy can be bought with self-declaration up to a specified limit. According to the valuation report by the government, approved valuers are only required where 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. Hence, up to a total sum insured of Rs 40 lakh, the insured will not be needed to do any valuation and has to only declare a list of the valuables. However, valuation will be required if the sum insured exceeds the total of Rs 40 lakh.

Anamika Roy Rashtrawar, Whole Time Director (Marketing), IFFCO Tokio General Insurance, said, This policy is simple and easy to understand with a streamlined claim process. The policy offers a comprehensive cover to bank locker contents at very affordable rates.” The policy offers 7 options of sum insured ranging from Rs 3 lakh to Rs 40 lakh and above. The premium charged for a cover of Rs 3 lakh is Rs 300 and Rs 2,500 to get a cover for Rs 40 lakh.

Table: Sum Insured offered and the premium charged

Sum Insured/ Limit of Liability (Rs.) Premium (excluding GST)
3 Lakhs Rs. 300
5 Lakhs Rs. 500
10 Lakhs Rs. 1000
20 Lakhs Rs. 1500
30 Lakhs Rs. 2000
40 Lakhs Rs. 2500
Above 40 lakhs Rs. 0.60 per mille

Source- IFFCO Tokio general insurance

As an add-on cover, policyholders can also ensure important documents kept in a locker, apart from jewelry and valuables. The policy is sold both as a retail and a group policy for banks. Policyholders can make a claim with basic documents like claim form, along with supporting documents such as invoices and proof.