Over the past few years, there has been a notable increase in the usage of bank lockers. With this rise, one constant query is: If items get stolen or go missing from a bank locker, will the bank compensate for them? In today’s article, we will consider the different laws of bank lockers and hopefully help you understand how to safeguard your valuables.
A bank locker has become a popular facility for keeping important papers, jewelry, and other valuables safe. Yet, many clients remain ignorant about the rules of these lockers, primarily in cases of theft, fire, or any other unforeseen happenings. So let’s find out some key details you need to know about.
Rules and Responsibilities for Bank Lockers
Loss of Locker Keys
- Should you misplace your key in the bank locker, the first step is to report the incident to the bank. The bank may procure a duplicate key or assign a different locker altogether. In any case, you will also bear the cost of breaking open and repairing the bank locker.
Breaking Open a Bank Locker
- The event of opening a locker is to be done in the presence of the locker holder and an officer of the bank.
- In the case of joint lockers, all the joint holders must be present during the opening. In case any one of the holders is absent, the present holder must obtain the necessary written consent.
- A bank can also open a locker for non-payment of rent for three consecutive years or non-usage periods of seven years post-payment of rent.
- For any criminal activity or suspicious circumstances, the banks may break the locker without the holder being present, but police and banking officials must be in attendance.
Locker Insurance
- Generally, banks provide insurance against theft, fire, or other instances. However, you must prove your stored items and the negligence of the bank for any compensation.
Theft or Robbery
- The bank contacts the customers in case of theft or robbery and provides a form and affidavit to list items in the locker. After an investigation, compensation is provided for up to 100 times the annual service charge. For instance, if your service charge is ₹10,000, you could receive up to ₹10 lakh as compensation.
Fire or Natural Disasters
- In case of fire affecting the locker, the bank would be liable due to negligence. The bank shall pay compensation to the customer with 100 times the annual service charge from the date of the fire, as per RBI guidelines.
Claiming Lost Items
- In the case of stolen items being recovered, you will need to submit the necessary documents to prove ownership. For instance:
For jewelry, a purchase receipt.
- For property documents, ancillary evidence such as house tax/electricity bill.
What is the Bank’s Responsibility?
As per Anil Tiwari, Media Charge of the United Forum of Bank Unions, the bank can be held liable only up to the extent of 100% of the annual rent in cases of theft, breakage, or other acts of criminal misconduct. As regards the articles kept in the locker, the bank can be, in a manner, exonerated from liability, as it considers this to be a matter wholly between the customer concerned and the bearer of the key.
Tips to Protect Your Valuables in a Bank Locker
- Inspect the Locker: The locker should be locked with a new lock before being put into use.
- Up-to-date Inventory: Maintain a full and updated list of what is within the locker, and make updates with each access to the locker.
- Store Receipts: Store your receipts from valuables, jewelry, or documented property outside the locker.
- Lock the Locker with Caution: To use your bank’s locker, leave it for the bank’s employee’s use and check it at the end when it is closed.
- Visit the Locker Occasionally: Use your locker regularly and reply to notices coming from the bank immediately.
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