What happens if your assets in a bank locker are robbed? How much compensation will you get? | EXPLAINED

Losing gold from a bank locker sounds like a nightmare, and unfortunately, the reality is more complicated than you might think. The short answer: if your gold is stolen, the bank’s liability is strictly capped at 100 times your annual locker rent, typically ranging from Rs 1.5 lakh to Rs 9 lakh, depending on the locker size. There’s no insurance from DICGC for locker contents, and banks are not obligated to replace the actual market value of your gold.But there is more to the story. Whether and how much you actually recover depends on several factors: proving that your gold was really in the locker, showing the bank was negligent, and the strength of your case in court. Let’s break it down.1. The RBI’s Hard Cap: 100× Your Annual RentUnder the RBI’s Revised Instructions on Safe Deposit Lockers, if your locker is robbed, burgled, damaged by fire, or looted due to employee fraud, the maximum liability of the bank is 100 times the annual rent of your locker.For example:A small locker costing Rs 1,500/year - Maximum compensation: Rs 1.5 lakhA medium locker costing Rs 5,000/year - Maximum compensation: Rs 5 lakhA large locker costing Rs 9,000/year - Maximum compensation: Rs 9 lakhThe formula is deliberately capped because the bank does not know what is inside your locker and therefore cannot insure it. Customers are not required to disclose locker contents, and no receipts or documentation are collected by banks at the time of allotment2. When Banks Are LiableNot every locker theft automatically triggers bank compensation. The bank is liable only if the loss was caused by its negligence or failure to follow security protocols. Some examples of negligence include:No security guards on the premisesFaulty or outdated alarm systemsCCTV cameras are not working, or the footage is not preservedBreach of vault security proceduresFraud or theft by bank employeesFailure to comply with RBI’s mandatory security directives (proper locks, access logs, biometric systems, etc.)3. When Banks Are Not LiableBanks are generally not responsible for losses caused by:Natural disasters like floods, earthquakes, or tsunamisRiots, terrorism, or external violenceLightning or uncontrollable firesLocker holder negligence (eg, lost key, locker not properly locked)This distinction between points 2 and 3 means that if a bank robbery happens and the bank was following all RBI-mandated security protocols, the bank's liability may be contested, and you may face a lengthy legal battle to prove negligence.4. The Proof ProblemTo claim compensation for stolen gold, you need to prove three things:The gold/assets were actually in the locker at the time of theftThe quantity, quality, and value of the gold/assets purchase receipts, jeweller certificates, or affidavits helpThe bank was negligent – broken protocols, security lapses, or employee involvementReal-Life Example: SBI Bokaro Steel City Robbery (2017)Customer Gopal Prasad Mahanty claimed he had Rs 32 lakh worth of gold jewellery in his locker. After the robbery, police arrested the thieves but recovered only small quantities of jewellery; the rest was melted and mixed with other stolen gold. Mahanty had no purchase receipts to prove the exact value. Despite this, the Supreme Court directed SBI to pay Rs 30 lakh as compensation, recognising the loss and the bank’s negligence. However, the court noted that the exact amount could not be determined due to a lack of proof.This basically means that without bills, jeweller certificates, or other proof, courts are reluctant to award the full claimed amount.What You Actually Get BackHere is what your recovery journey likely looks like:Scenario A – No Proof: Without receipts or certificates, the bank typically offers Rs 0. Filing a consumer complaint may yield Rs 2–10 lakh as goodwill if the bank was clearly negligent, but the process can take 3–5 years. Net recovery is partial.Scenario B – Strong Proof: With purchase receipts or certificates, you can claim up to 100× locker rent or the actual loss, often Rs 5–15 lakh if negligence is evident. Timeline: 3–5 years. Recovery is closer to actual loss.Scenario C – Insurance: Locker contents insurance (Rs 500–2,000/year) reimburses up to the policy limit independently, often Rs 10–50 lakh, with a faster 6–12 month process.In short, a locker is secure, but not fully insured. If you want full protection, consider additional private insurance for high-value items.