Bank locker risks: How to protect your valuables and avoid financial losses

A consumer commission ruling against Union Bank highlights how customers can protect locker valuables through proper documentation, surrender acknowledgements, insurance and timely complaints.

A recent Delhi State Consumer Disputes Redressal Commission ruling highlights the need for bank customers to document locker contents and follow proper surrender procedures.

 

In Monica Marwah vs Union Bank of India, the commission held Union Bank of India deficient in service, as it could not prove that Marwah and her late father-in-law had voluntarily surrendered their joint locker. It awarded ₹47 lakh for missing jewellery, with 6 per cent annual interest, ₹3 lakh for mental agony and harassment, and ₹50,000 towards litigation costs.

 

Record locker contents

 

Banks do not maintain records of locker contents. Customers should maintain a list and photographs of the contents, updating both whenever an item is added or removed. Visit the bank and check the locker at least twice a year. Report any discrepancies immediately in writing.

 

 

“Keep purchase bills wherever available. For inherited jewellery, where bills may not exist, a valuation certificate, inheritance documents or a family declaration can help establish its value and provenance. Store these records outside the locker,” says Adhil Shetty, chief executive officer, BankBazaar.

 

Check SMS and email alerts. Report unfamiliar access and seek explanations from the bank.

 

Follow surrender formalities

 

Empty the locker in the presence of a bank official, pay the rent and return the keys.

 

“Obtain a written acknowledgement from the bank confirming that the locker has been vacated and surrendered, duly signed by both parties. Preserve this document,” says Shetty.

 

Confirm that rent deductions will stop and check subsequent bank statements.

 

Assess the need for insurance

 

The bank’s liability may not cover the actual value of the contents. Customers storing very valuable items should therefore consider buying insurance cover. 

 

 

“The policy should cover risks such as burglary, fire and accidental damage. Equally important is checking exclusions, coverage limits and claim conditions before buying. Keep the policy and supporting documents outside the locker,” says Mohindra S Indolia, executive vice-president – commercial underwriting, IFFCO-TOKIO General Insurance Company.

 

He adds that a valuation report from a government-approved valuer is required if the total sum insured exceeds ₹40 lakh or any single item is worth more than ₹10 lakh.

 

Check the joint locker mandate

 

When opening a joint locker, check the operating mandate: Can either holder operate it independently, or must both be present?

 

If one holder dies, access depends on the operating mandate and nomination.

 

“Under an ‘either or survivor’ arrangement, the surviving holder can generally access the locker after completing the required formalities. In other cases, the nominee may also need to be involved,” says Shankey Agrawal, partner, BMR Legal.

 

Challenge disputed surrender

 

If the bank claims that you surrendered a locker, seek the alleged surrender request, access records, key return register and closure acknowledgement.

 

“In Monica Marwah’s case, the bank failed to produce documentary evidence of surrender. Continued rent deductions further weakened its defence,” says Agrawal.

 

Understand the bank’s liability

 

In Amitabha Dasgupta vs United Bank of India, the Supreme Court held that banks cannot escape liability for negligent locker management.

 

“Under Reserve Bank of India (RBI) guidelines effective from January 2022, a bank’s liability in cases such as theft, burglary, fire and employee fraud is capped at 100 times the prevailing annual locker rent. For an annual rent of ₹5,000, this works out to ₹5 lakh. However, this may not rule out additional remedies under consumer protection or other applicable laws where negligence or deficiency in service is established,” says Agrawal.

 

File complaints with records

 

If valuables go missing, complain in writing to the branch manager and obtain an acknowledgement.

 

“If the issue remains unresolved, escalate it to the bank’s grievance officer and principal nodal officer. If there is no satisfactory response within 30 days, approach the RBI ombudsman or a consumer commission,” says Siddartha Karnani, partner, King Stubb & Kasiva, Advocates and Attorneys.  

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The writer is a New Delhi-based independent journalist.