Storing valuables in a bank safety deposit box still the safest option

Dawie Loots, CEO of MUA Insurance Acceptances.

The recent heist at a FNB branch lead to hundreds of clients’ safety deposit boxes to be robbed on New Year’s evening. This incident has led consumers to query how safe bank vaults are and whether there are any insurance implications should their valuable items be stolen from the deposit box.

Dawie Loots, CEO of MUA Insurance Acceptances, states that most personal insurance policies will cater for items that are kept in a bank safety deposit box and will usually charge a reduced premium for these items as the risk of theft is perceived to be much lower. “The last incident is something that happens very seldom in South Africa, especially when compared to residential robberies or burglaries. This means that the risk of storing valuables at home is still higher compared to storing items in a bank vault.”

Items kept in a bank deposit box are usually of high value and the policyholder should know that as soon as these items are taken out of the bank deposit box, they could have zero or inadequate cover. “It is vital to check with your insurance provide what the terms and conditions are should the items be taken out of the safety box. For example, what will the implications be should an expensive watch be taken out to wear to an event and the watch gets damaged or stolen,” he explains.

In addition, some banks may have a disclaimer in place to state that the bank cannot be held liable for any loss or damage to the contents of the box. Therefore Loots states that is critical that consumers have their valued items insured, even though it is safely stored in a bank deposit box as the bank can legally not be held responsible for the damages or loss if the client signed the disclaimer.

“As the FNB case is a very unusual event, each insurance provider would have dealt with the claims differently. It is advised that consumers speak to their broker for advice on how their insurance company will handle a similar situation,” concludes Loots.