Bank Locker: How much compensation Customers get if Bank Locker gets looted or theft?
The robbery at the Indian Overseas Bank Chinhat Branch in Lucknow has taken the entire nation by storm. Jewellery and Items worth crores of rupees were stolen from the lockers of the Indian Overseas Bank. Robbers broke 42 lockers of Indian Overseas Bank in the capital of Uttar Pradesh. Police have arrested robbers and two have been killed in the encounter. But the most important question is – What will happen to customers now. How will they get their items kept in locker back and how much compensation will they get?
Bank Liability for Locker Contents: Guidelines on Natural Calamities and Security Incidents
Liability for Natural Calamities or Customer Negligence
Banks are not responsible for any damage or loss of locker contents caused by natural calamities or Acts of God, such as earthquakes, floods, lightning, or thunderstorms. Similarly, the bank holds no liability if the loss or damage occurs due to the sole negligence or fault of the customer. However, banks are required to take necessary precautions to safeguard their locker systems and premises against such events.
Liability for Fire, Theft, Burglary, and Fraud by Bank Employees
Banks are obligated to ensure the safety and security of their premises, including the vaults housing safe deposit lockers. It is their responsibility to prevent incidents like fire, theft, burglary, robbery, dacoity, or building collapse that may arise from negligence, shortcomings, or acts of omission or commission. If locker contents are lost due to these incidents or due to fraud committed by bank employees, the bank cannot deny liability. In such cases, the bank is liable to compensate the customer up to 100 times the annual rent of the locker.
How much amount will Customers Receive?
This means that in case of robbery, Bank Customers will receive amount up to 100 times the annual rent of the locker. This means that if your locker rent is Rs.2000 then you will receive Rs.2,00,000 as compensation.
Do Banks provide Insurance of Locker Contents by Customers?
Banks do not maintain any record of the contents stored or removed by customers from their lockers. As a result, banks are not liable for insuring the contents of lockers against any risks. Additionally, banks are strictly prohibited from offering or promoting any insurance products, directly or indirectly, to locker holders for insuring the contents of their lockers.
Should Customers be worried?
Bank robberies can be a scary experience for customers, especially when it involves lockers. However, public sector banks in India are known to be some of the safest and most secure banks in the country. Over the years, there have been several incidents where bank lockers were robbed, but there is some reassurance in how such situations were handled.
In many cases, the police were able to track down and recover the stolen items. Additionally, banks took responsibility and provided compensation to the affected customers. This shows that even in unfortunate situations, steps are taken to ensure that customers do not suffer major losses. While such incidents can cause worry, the strong systems and quick actions of authorities and banks help maintain trust in public sector banks.
