IFFCO Tokio General offers bank locker cover

Following a few incidents of bank locker robberies, IFFCO Tokio General Insurance is offering the first stand-alone bank locker cover, where jewellery and title documents are protected based on declaration alone.

The private insurer started work on developing its ‘bank locker protector policy’ cover after robbers in Mumbai tunnelled into a bank’s strong room and emptied the contents of over 30 lockers over a year ago. Similar incidents have been reported elsewhere in the country as well. While insurance companies have previously covered bank locker contents, it was as part of a wider household cover.

IFFCO Tokio’s contract is limited to loss while the valuables are in bank’s possession. As a result, it is possible to get cover for Rs 40 lakh for a premium of Rs 2,500. Up to this amount, the insured has to only declare a list of the valuables and need not do any valuation. Valuation is required if sum insured exceeds Rs 40 lakh.

According to IFFCO Tokio whole time director Anamika Roy Rashtrawar, most people do not know that locker hiring agreements do not cover compensation in the case of burglary. She added that the policy would cover family heirlooms passed on from earlier generations for which invoices would not be available.

The policy covers loss arising out of accident, burglary, terrorism, hold-up or infidelity of bank staff. The cover is limited to bank lockers provided by scheduled banks but not private lockers. “Unless a single piece of jewellery is valued at more than Rs 10 lakh, we will be go by basic declaration of the insured. In the event of a claim, we would require a copy of the FIR,” she said.

While the policy can be purchased by individuals, IFFCO Tokio is in talks with banks to get them to offer this insurance while providing lockers on rent. The annual premium on policies above Rs 40 lakh falls to 0.06% of the sum insured, while for lower value policies below Rs 10 lakh it is 0.1% of the sum insured.