Protect bank-locker contents through insurance

The theft of bank lockers at Sonepat, Haryana, branch of Punjab National Bank by digging a tunnel into the locker room has left scores of bank locker holders astounded. What aggravated the fury of the 89 locker holders of the branch was the realisation that a bank isn't bound to compensate for the theft.
A bank is in no position to compensate as there is no proven way of finding the locker contents. The relationship of a bank and a locker holder is just of a tenant and landlord. Don't just rush to the locker and stash jewellery and valuables at home. Barring a few cases of theft at bank lockers each year, they are still the safest place to park your valuables.
By splitting valuables between home and bank locker you can reduce the geographical risk. But if you are having sleepless nights over the safety of your jewellery and valuable stored in the bank locker, a jewellery insurance cover offered by Axis Bank or a householders' policy would offer some solace.

Insurance coverage
These insurance covers protect jewellery stored at home, in bank lockers, and some companies also offer compensation for jewellery worn by the insured or being transported within the country. The policyholder is compensated in case of damage or loss of jewellery due to accidents and unfortunate instances.
"Apart from the Axis Bank locker holders, we offer such coverage to all our customers insured with us under the Home Insurance plans – household or My Home All Risk," says Praveen Chhajed, head- non motor claims at Bajaj Allianz General Insurance.

Process
You can opt for various limits from Rs 2 lakh to Rs 10 lakh. "The customer has to give details of the jewellery, such as type, weight and replacement cost up to items of Rs 10 lakh. However, if the replacement cost of the jewellery is above Rs 10 lakh, the customer is required to submit a valuation certificate at the time of purchasing home insurance, adds Chhajed.
Check if there are any limits applicable under home insurance cover for jewellery. Companies such as ICICI Lombard, Tata AIA General among others apply a sub-limit for jewellery portion under the home insurance policy. So, if you have opted for a Rs 3 lakh policy then only 25% or jewellery worth Rs 75,000 would be covered under the policy.
During the policy term if you make any high-value gold purchase then you can inform the insurer about it and extend the protection to the new adornment.

Premium
The cost of getting these covers is low compared to the value that they hold. "The premium is in the range of 0.5-1% of the market value of jewellery," says B K Sinha, managing director of Unison Insurance Broking Services.
This market value of gold would differ based on the day gold is valued. If the gold price was Rs 26,000 per 10 gram when you insured it, but declined to Rs 24,000 when the theft occurred, which value would be considered?
The agreed value between the customer and the insurance team while taking the policy would be considered as the value of gold, according to Bajaj Allianz General Insurance. "If you took the policy when the gold was at Rs 30,000 per tola then the same price would be applicable at the time of theft," clarifies Sinha.
Don't forget to ask for a discount if you are opting for two or more sub covers under the householder's or home insurance policy. Other sub covers are baggage protect, pedal cycles, appliances cover etc. Insurers offer 10-20% discount based on the actual package asked for.

Not covered
Though the cover would protect your jewellery from most damages and thefts, there are damages resulting from large-scale acts that aren't covered. If your jewellery is lost or damaged as a result of war or hostility or due to direct or indirect use of nuclear weapons then the insurance company wouldn't compensate.
The policy wordings of most jewellery and contents cover mention that if the house has been unoccupied for more than 30 days, during which the theft or burglary took place, then he claim may be rejected.
When you are moving in a car with the jewellery ensure that you lock the doors and roll up windows as any negligence on these aspects could lead to claim rejection. Also, file the claims within the timeframe – typically 15 days – specified by your insurance company.
Preserve the invoice as claims for jewellery worth Rs 50,000 and above would be accepted only if a valuation certificate or the invoice of purchase is available.

To claim for loss one needs:
Claim form
Evidence of theft or damage
Total loss estimate
Police FIR
Jewellery invoice/ valuation certificate
Fire brigade/ meteorological department/ seismological report (in case of damage by natural calamity)