Are your locker really safe and locked

The recent incident involving a fire break-out at a branch of the Punjab National Bank raises many questions in our minds about the safety of the items we keep for safeguarding in bank lockers. It must be clarified here that there was no damage, the safety lockers were not harmed and they are anyway expected to be fire proof and safe. But, still, the question of supreme safety remains. Is it safe? What happens in case the locker is destroyed along with our valuables due to whatever reason? This article tries to help us understand the answers to the above questions.

For long, bank lockers have been the first choice to safeguard valuables for most Indians and they continue to be the safest option.
To hire a bank locker,one has to be above 18 years and some bankers ask you to open a savings account with them.  The lockers provided are of different size and we can choose the size of the locker based on our requirement. The deposit amount and the charges for hiring the locker vary from bank to bank.
The banks have made the nomination or joint ownership of a locker compulsory while hiring a locker. The customer will receive a “memorandum of letting”, which is a document that states our locker details while hiring the locker.

Each locker has two keys; the bank retains one key and the other remains with the customer; one can open the locker only when both keys are used.
It is believed that bank lockers are the safest places to keep your valuables due to their privacy in operations and secrecy of the contents.
However, it is only the strongest “belief” of the banks that the valuables kept in the lockers will be safe, they state that there is no other place as safe as the lockers but they seem to be completely irresponsible if your valuables go missing!

The banks say that the relationship between a person hiring the locker and the bank is like that of a proprietor and tenant. The banks actually do not know what is kept in the lockers, so they will not compensate if the contents of the locker is missing.
The basic premise behind the banks shying away from responsibility is the fact that they do not want to know what is inside the locker. If they do not know, then how can they be sure that your claim is correct in case of an issue?

What RBI says about Locker Policies
As per the RBI policy, “The bank will, in no way, be responsible or liable for the contents kept in the locker by the hirer. In case of theft, burglary or similar unforeseen events, action will be initiated as per law”.

The Reserve Bank has also said that even if the banks do not know about the contents of the locker, they should take necessary steps to protect the contents in the locker. There were also a few cases in the past that have received compensation on loss or damage of locker contents.

Case Laws Regarding Compensations:
1991, Punjab National Bank, Bombay, vs K.V. Shetty (FA No. 7 of 1991: The person found the contents — jewellery —  of his locker to be missing and received a compensation of Rs1,26,017 along with interest calculated at the rate of 18 per cent through the consumer court. The bank claimed that it was not responsible for the loss as per the agreement signed but the National Commission dismissed the bank’s argument.

In RP No: 889 of 2000, the customer filed a case stating that termites had destroyed the currency notes and important papers kept in a locker. The commission said the bank “was bound to ensure that the respondents’ locker remained safe in all respects” and awarded compensation.

How to ensure the safety of your bank locker
If you have your valuables in the locker, make sure your bank has all the necessary security measures such as alarm system, iron-gated rooms, and electronic surveillance via CCTV etc. Check your locker frequently and ensure your valuables are safe, frequent locker visit is what the banks and the RBI expects from the customers. The important aspects to be considered are the terms and conditions regarding the locker hiring process. Read the terms and conditions of the documents before you hire the lockers.

Try to make a list of all the things you are planning to keep in your locker. This record will help you to calculate the value of the contents and if the contents are missing, you can identify it easily and it will help you to claim your compensation.

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.
The safety measures provided by the banks are more secure than our homes but the bank not taking responsibility of the contents acts as an obstruction for many to hire a bank locker. But we need to appreciate that with new technology and safety measures, an incidence of valuable documents being destro-yed or personal belongings going missing from a locker has a probability of a one in a billion times. Not much really!

(The writers is
the CEO of bankbazaar.com)