Experts, bankers differ on liability for loss of locker items

NEW DELHI: Consumer rights experts feel that banks are shirking their liability towards loss or damage of items kept in their lockers and not taking responsibility for it amounts to “deficiency in service”.

Days after an RTI response by the RBI and several banks that there is no compensation for loss of valuables in lockers, officials of both the PSU and private banks are passing the buck to the consumers, saying clients do not disclose the contents of the safe deposit box.

The bank officials, who did not want to be identified, were of the view that burglary beyond the security cover provided by a bank was not covered under the agreement between the customer and the bank

The RTI disclosure by the Reserve Bank of India (RBI) and 19 PSU banks had said that they were not liable for damage to the locker contents by any cause, including fire or natural calamities. Consumer experts say it will be prudent to bring transparency on what is kept in lockers so that the banks can insure the contents against any damage or loss by burglary, as bank officials are taking refuge under the reason of non- disclosure of locker contents.

Disagreeing with the experts that annual fee charged for lockers made the bank liable for all safety aspects, including loss and damage to valuables, the bank officials said that the annual fee in respect of lockers was only charged for “safe keeping”.

However, they have not elaborated on what is meant by “safe keeping” and whether failure to do so will entitle the consumers for compensation.

Consumer rights expert and founder of Consumer Online Foundation, Bejon Misra, said, “The government, the RBI and the banking industry cannot wash off their hands and earn money from consumers and not be made liable or accountable for quality of service for which the customers are paying rental.”

Kush Sharma, a lawyer who handles consumer cases, said the banks should take the responsibility of insuring the locker contents.

To achieve this objective, he said, “There should be transparency in what is being kept in the lockers, especially when the government is focused on bringing in transparency in all financial activities.”

Sharma said that once there is transparency regarding articles kept in the locker, the banks can opt for group insurance. Misra, who also shared a similar view, said there should be a law mandating the people to declare what is being kept inside the lockers so that the same can be insured by the banks.