how effect can be insurance?

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Yesterday, (Dec. 26, 2006), when a Bank at Narasaraopet, Andhra Pradesh, India, opened its doors after Christmas vacations, it found that its FIRE AND BURGLARY RESISTANT SAFE was broke open with gas cutters and gold worth about USD 10 million was burgled. 4 kg. of molten gold was untouched. Large cash was also not touched. The Bank had insured its valuables and will get itself indemnified. The Insurance Company may be safe because it would be paying from the pool of premia collected from thousands of banks. The Bank did not have any security guards posted at the locked shutters. If the burglars melt the gold and sell it, the people who kept their gold in bank will only get an approximate value of the gold ornaments. Definitely, not the actual jewellery ornaments which may have personal attachment to the citizens. Is it a national loss? As long as the gold does not move out of a country, it cannot be called a national loss. Instead of individuals holding it, the thieves or buyers from them hold it. Gross Domestic Product (GDP) may not change. But Can we say that insurance really serve any purpose?