Your bank locker is safer than home — but not fully protected.
Many families keep their life's gold in a bank locker and assume it is fully insured. It is not. Here is what the rules actually say, and how to protect yourself.
Last reviewed: October 2026 · Give a missed call to +91 91766 82150 — I will call you back.
In force since 1 January 2022.
When the bank must pay
- If contents are lost due to fire, theft, burglary, dacoity, building collapse or fraud by bank staff
- Compensation is capped at 100 times the current annual locker rent
- Example: annual rent ₹3,000 → maximum compensation ₹3 lakh, however much was inside
When the bank is not liable
- Natural calamities and 'acts of God' — earthquake, flood, lightning (though the bank must take reasonable care of its premises)
- Loss caused by the customer's own negligence
- Banks cannot force you to buy their insurance for locker contents
What the bank must do
- Give you a copy of the locker agreement
- Send an SMS and email alert every time your locker is accessed
- Keep CCTV recordings of the locker area for 180 days
- Settle a nominee's claim within 15 days of receiving complete documents
What the bank can ask for
- For new lockers, a term deposit covering up to 3 years' rent plus break-open charges
- If rent is unpaid for 3 years, the bank can break open the locker after due notice
Practical precautions.
Records
- The bank does not know what you keep — you must prove it
- Keep an inventory with photographs and purchase bills or valuation certificates, stored outside the locker
- Update the list each time you add or remove items
Real protection
- A home / householder insurance policy with jewellery or valuables cover protects contents in a bank locker
- Declare the value honestly and keep the valuation report
Don't keep everything in one place
- Because compensation is capped at 100× rent, consider splitting valuables across lockers in different banks
- Add a nominee or joint holder for every locker
Good habits
- Read every locker-access SMS; report anything unexpected immediately
- Visit the locker periodically
- Keep the key safe; report loss at once
- Avoid storing cash — it cannot be verified after a loss
Not regulated by RBI.
Before you rent a private locker
- Private vault companies are not regulated by RBI — your rights depend entirely on the agreement
- Check the company's registration, years in business and ownership
- Ask whether the company carries insurance on contents, and for how much
- Read the liability clause, access procedure and exit terms carefully
Common questions
How much will a bank pay if my locker is robbed?
Up to 100 times the annual locker rent, if the loss was due to theft, burglary, fire, building collapse or staff fraud. If your rent is ₹4,000 a year, the maximum is ₹4 lakh.
Is my bank locker insured for ₹5 lakh?
No. The ₹5 lakh DICGC insurance covers deposits such as savings and FDs, not locker contents.
Does home insurance cover jewellery in a bank locker?
Many householder policies offer valuables or jewellery cover that includes items kept in a bank locker. Check the policy wording and declare the values.
Is a bank liable for flood or earthquake damage?
Generally no — natural calamities are excluded, though the bank must take reasonable steps to protect its premises.
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