Lockers: some banks reluctant to honour claims related to vandalism?

LAHORE: Despite clear instructions from the State Bank of Pakistan (SBP), some banks are reluctant to honour the claims with regard to vandalism of lockers by the security guards or by their employees, said reliable sources.

In recent case, said the sources, the branch management of a leading bank has declined a complaint whose complainant had obtained safe deposit locker from the bank.

According to the sources, the said customer had operated her locker after about four years and found her gold jewellery missing from the locker. She filed a complaint before the manager of the bank branch then and there, which was declined by him. It was followed by a complaint before the Banking Mohtasib Pakistan who turned down the complaint as well.

However, the office of President of Pakistan accepted the same and directed the bank to compensate the complainant as per instructions of the SBP.

It may be noted that the SBP had issued a master circular on security standards for enhancement of security of the lockers back in 2004, mentioning that the banks were declining such claims because of a clause in their agreement with insurance companies, which restrict them to honour such claims.

Not only the SBP had instructed to upgrade security arrangements for safe deposit lockers but also review their insurance agreements and obtain comprehensive insurance with clear cut “Cap Limits” on various sizes of lockers at competitive rates from the insurance companies ready to cover the act of vandalism of lockers both by the security guards and employees of the banks/DFIs.

It is also worth noting that the SBP had also desired from the banks to properly convey the terms and conditions (including size, rent, insurance ceiling etc.) to the existing as well as new locker holders and obtain their consents for insurance ceiling etc., but all in vain because banks are dilly-dallying with these instructions till date.

The sources said the relationship of a bank and its customer is based on trust on the basis of which the customers put their valuable articles in lockers but it is noted with great concern that instead of making their best efforts to redress their grievances, banks’ managements not only decline such applications but also prefer to contest such claims before the appellate forums.

The public opt to put their valuable articles in bank lockers for security reasons and if their articles are misplaced from there and the banks will not redress their grievances in such a case of loss, the very foundation of the banking system would collapse, they apprehended.

Copyright Business Recorder, 2023