1. Home
2. Blogs

Jewellery Insurance Vs Bank Lockers: What Would You Choose To Safekeep Your Gold?

• 
• 
• 
• 0
• 0

Jewellery is the most prized possession of most families. Many still keep gold and diamonds in their homes safely tucked away in a corner of a cupboard or inside a locked box. But are those really safe? What if there's a theft in your house, a natural calamity, or unforeseen damage to your jewellery?

In such cases, you need to protect them with added security. This security can be found in terms of bank safety lockers and insurance cover. In this article, we will discuss both options in detail.

Jewellery Insurance

Jewellery insurance is a relatively newer term. Several home insurance policies give protection for jewellery if the total value of the jewellery is within a specified limit. Otherwise, you will need to insure your jewellery separately.

What it protects

Your jewellery insurance will mostly cover the following:

• Damage due to fire

• Burglary and theft of your valuables

• Damage is due to natural calamities like earthquakes, floods, storms, hurricanes, etc.

• Insurance covers items kept at home, in bank lockers, as well as in exhibitions

What it Doesn't

Your jewellery insurance will not cover the following:

• Wear and tear due to normal usage, while cleaning, servicing, or repairing.

• Damages caused due to wilful negligence

• The sale of originally insured items to buy a new item doesn't transfer the policy.

• Non-disclosure of any important aspects during taking the policy will lead to cancelled claims.

• Confiscation due to default in EMIs

Paperwork and Procedure

To buy jewellery insurance, you need to first make a list of all the items to be insured. Then make valuation certificates for each piece of jewellery from reputed jewellers. Based on the total valuation, your insurance price will vary.

Then fill out the concerned form and join all the valuation certificates. Once they are approved, you will need to pay the first premium for this year.

How Much Does It Cost To Buy Jewellery Insurance?

The cost of jewellery insurance varies for every person. There are fixed plans you can choose from. But if you want to customise your insurance plan, the cost will vary.

The total cost depends upon the total values of individual jewellery pieces. You can contact the help centre to get an exact cost estimation.

What to Watch Out for

While buying jewellery insurance, you must read the fine print of the policy document. Check whether you have complete or partial coverage.

All-risk cover (Complete coverage)

The all-risk cover gives you 100% of the insured amount per piece of jewellery in case of claims.

First-loss limit basis (Partial coverage)

But the first-loss limit coverage gives you only 25% to 40% of the insured amount. This percentage is decided by taking into consideration the partial damage jewellery sustained and the amount required to mend it.

Bank Safety Lockers

Bank lockers have been around for a while. Most banks have a limited number of lockers. A percentage of them are reserved for the high paying clients and the remaining are distributed on a first come first serve basis.

Paperwork and Procedure

To get a safety locker at a bank, you need a savings account in that bank. Then you can apply for a locker by filling out the necessary forms. Once your request is approved, you will be assigned a locker. On paying the annual rent, you can keep your jewellery in bank locker.

Cost Factor

For HDFC Bank safety lockers, the pricing is as mentioned in the table below.

Annual Bank Locker Rent in Different Regions (in INR)

What to Watch Out for

While buying a bank locker, you should watch out for

• Refund policy:

Find out if you give up a locker before the end of your year, then will the bank refund you the amount for the remaining months?

• Additional charges:

Discuss additional charges with the bank. Most banks allow you to open the locker only a limited number of times. Additional charges are applicable after that.

• Penalties:

If you lose the locker key or damage the lock, you might have to pay penalties.

Conclusion - What to Choose?

Both insurance and a bank locker are great options to protect your jewellery from damage, burglary and theft, fire, natural calamities, etc. Bank lockers give an added security from theft that insurance cover cannot. But in case of theft from a bank locker, only the policy cover will save you money.

The cost of lockers is significantly less and you can keep as many valuable items as it can fit. But in the case of jewellery insurance, the premium amount increases as you add more valuables. But that extra amount will save you a lot of money in case of unforeseen circumstances.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

RELATED ARTICLES

Burglary Insurance: Protect your Home and Know How to Claim Your Rights

Know About All-Risk Electronic Equipment Insurance

Comprehensive Guide to Tenant Insurance

Here are 5 Important Inclusions under Home Insurance in India

A Guide for Homeowners to Stay Safe from Home Title Theft

---

• 
• 
• 
•