Is your Bank Locker Safe – Liability of Banks in case of Locker Theft

LOCKER THEFT: How Safe is your Locker? What is the liability of bank in case of Locker Theft?

Lockers are a general tendency now days in every Bank. Almost every Bank offers this facility to its customers. It has become a vogue among general people to have locker in Banks. Many Banks offer safe deposit locker facility to the Customer to deposit their personal belongings, mainly gold ornaments, cash and other important documents in lockers. The facility is provided in exchange of a particular annual charge based on size of the locker. The Customers generally feel safe while depositing their valuables in the Bank Locker, considering the level of security and vigil ensured by the Bank. But question arises: Is your Bank Locker Really Safe or not?

• RECENT INCIDENTS HIGHLIGHTING THEFT OF BANK LOCKERS IN LIGHT1

A major fire broke out at the Punjab National Bank headquarters in New Delhi recently, trapping hundreds of people inside and triggering panic across the capital.

Daring heist in Punjab National Bank, Branch Office Sonepat, Haryana where thieves dug up a 125 feet long tunnel and broke into the 77 lockers decamping with cash, jewellery and other valuables have shocked customers.

In another case, in a daring robbery at a Central Bank of India branch in UP some time ago, at least 45 lockers are claimed to have been emptied out.

In another daylight bank heist in Chennai, armed men made away with Rs 14 lakhs from the Keelkattalai branch of Indian Overseas Bank, triggering panic among customers and forcing many of them to clear out their lockers and close their accounts.

These are not lone incidents, but just the tips of an iceberg!

So if you thought that a bank locker is the safest place to keep your cash and valuables in, think again. Worse, if any of your valuables is lost or stolen in such incidents, banks are not bound to entertain your claims.

• WHO ALL ARE ENTITLED TO HAVE LOCKER FACILITY IN BANK

Safe Deposit Locker Facility is one of the ancillary services facilitated by Banks at its branches.

Bank Lockers will be available to any person having contractual capacity i.e. Capacity to Enter into contract. Thus locker can be hired by:

• Any single individual;
• by two or more individuals jointly,
• Firms,
• Limited Companies,
• Societies,
• Associations &
• Clubs etc.

• WHAT IS THE RELATIONSHIP OF A BANK AND A CUSTOMER

Relationship between the Bank and the locker hirer is in the nature of a Bailor and Bailee and not Landlord and Tenant though the Bank has no knowledge of the contents of the locker.

• FIX DEPOSIT AS SECURITY FOR LOCKERS

To ensure prompt payment of lockers rent at time of allotment, a minimum fixed deposit is obtained which would cover rent and the charge for breaking open of lockers in case of any eventuality.

• GENERAL DOUBTS IN MIND OF CUSTOMERS

1. Is the Bank Liable for the contents of the Locker?
2. Is the Bank liable for theft of its Articles?
3. How much liability a bank incurs regarding the articles kept in the locker?
4. Whether the Bank Security is a key question while taking lockers in a bank?

• LIABILITY OF BANK IN CASE OF LOCKER THEFT

Banks are not responsible for your Bank Locker for any unforeseen event which are beyond the control of Bank provided everything is done with due diligence on the part of the Bank. Banks are not 100% liable in case of theft or robbery because you customers can never define how much loss took place with certainty. The risk is always there with the lockers, but it is not an extreme eventuality.  Banks are unaware of the fact that what is kept inside the locker. The Locker can only be opened by the Locker Holder along with the master key of the Bank. Therefore the Bank cannot be held responsible for the alleged loss. Bank is liable to compensate to customer as it amounts to deficiency in service.

• GUIDELINES OF RBI ABOUT LOCKERS

As per the policy of RBI:

“The Bank will, in no way, be responsible/liable for the contents kept in the locker by the hirer. In case of theft, burglary or similar unforeseen events, no action will be initiated as per law”

The RBI has also said that even if the Banks do not know about the contents of the Lockers, they should take necessary steps to protect the contents in the locker. There have been a few cases in the past where customers have received compensation for loss or damage to locker contents.

• STEPS TO ENSURE THE SAEFTY OF LOCKER CONTENTS

The important aspects to be considered are the terms and conditions regarding the locker hiring process. Read the documents carefully. Make a list of all things you are planning to keep in your locker. This will help you calculate the value of the contents and will help you claim your compensation in case any item goes missing. Always open your locker after the bank employee, who accompanies you to the vault, leaves the place. Also ensure the locker is properly locked before you leave the vault. Important measures to curb locker theft are as under:

1. CCTV Cameras – Please check that the Bank where you intend or have kept your locker should have facility of proper CCTV camera so that in case of any theft, Accused persons can be traced out easily by the Investigation Agency.

2. Receipt of Belongings – A proper receipt of belongings should be held with the customer. The receipt will be beneficial for the customer at the time of seeking compensation from the concerned bank in case f any theft or robbery.

3. Security Check – The customer should ask from the Bank Manager that whether he has complied with the Security Guidelines as proposed by the Reserve Bank of India from time to time.

4. Regular Area Check – The Bank should conduct a proper security check of the locality from time to time in order to curb conspiracies for robbery and theft.

5. Frequent Locker Visit – The Customer should visit the locker frequently and check the articles in the locker in order to be sure of security of the locker.