Money Insurance Policy: Money insurance is a policy that protects the policyholder against financial loss. Current coin, bank and currency notes, cheques, postal orders, and current postage stamps are come under this money insurance policy. Millions of clients in India park valuable assets including gold, saw, and cash in bank lockers for safekeeping. These vaults, made of extremely secure metals, are designed to keep important items safe from danger.
Bank will not give the compensation in these cases
The bank should assume responsibility and make up the damages if your goods in the bank locker are stolen or damaged as a result of a flood, earthquake, riot, terrorist attack, customer negligence, etc. That’s not the case, though. The financial organisation is not accountable for the valuables in its lockers, according to the Reserve Bank of India (RBI).
What Head of Property UW said about the Money Insurance Policy?
Gurdeep Singh Batra, Head of Property UW (E&S), Risk Engineering, Global Accounts and Coinsurance, Bajaj Allianz General Insurance, said, “Cash or money is typically covered under a money insurance policy only when it is stored within insured premises for which other coverage options, such as fire, burglary, theft, accidental damage, etc., have been opted for. Hence, money stored in a bank locker is not generally covered under a money insurance policy specifically. However, we understand that with the revised RBI guidelines, banks are now mandated to safeguard against risks such as fire, theft, and building collapse when it comes to bank lockers, with their liability generally limited to 100 times the annual locker rent.”
Know about the compensation
However, the bank’s obligation will only be equal to 100 times the current yearly rent of the safe deposit box in the event of incidents like fire, theft, robbery, building collapse, or fraudulent behaviour committed by its staff. Again, the payment you receive is insufficient. No matter how much money you spent storing valuable items in the locker, the bank would only pay out Rs 1 lakh if the annual storage fee is Rs 1,000.
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