Safe Deposit Locker: What Happens if There is No Nomination?

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Life can be uncertain at times, and nomination has become an essential part of every asset class. Nomination is nothing but nominating a person of your choice for your assets such as FD and locker in case of death.

Most individuals other then a bank account also avail the safe deposit locker facility with banks, which help them to keep the ornaments, file and other necessary documents safely.

Nomination facility simplifies the procedure for settlement of claims of deceased depositors as banks get the authentication to whom dues should be paid.

One can nominate easily by just filling a form and submitting the same to the branch. Now, let us see various instances on how a bank can act in case of nominations and without a nomination. 

Safe Deposit Locker: What Happens if There is No Nomination?

With Nomination

The nominee will be allowed to access the locker and remove the contents on identification such as Election ID Card, PAN Card, Passport etc. and verification of proof of death of locker hirer.

Before permitting the nominee to remove contents of the Safe Deposit Locker, the bank would prepare an inventory of the articles in the presence of nominee and two independent witnesses.

Without Nomination

Legal heir of the deceased locker hirer will be allowed to access the locker and remove the contents on verification of proof of death of locker hirer.

The legal heir will have to produce documents to establish their identity. Before permitting legal heir to remove contents of the Safe Deposit Locker the bank would prepare an inventory of the articles in the presence of legal heir or mandate holder and two independent witnesses.

Joint Account with or without nomination and Without survivor-ship mandate (operated jointly)

With Nomination

a) In the event of the death of one or more but not all of the joint locker hirer the nominee will be jointly allowed to access the locker and remove the contents on identification and verification of proof of death of the locker hirer along with the surviving hirer.

b) In the event of death of both or all joint locker hirer the nominee will be allowed to access the locker and remove the contents on establishing their identity and verification of proof of the death of the hirer.

Before permitting surviving hirers or nominee to remove contents of the Safe Deposit Locker, the bank would prepare an inventory of the articles in their presence along with two independent witnesses.

Without Nomination

a) In the event of death of one or more but not all of the locker hirers, the surviving hirers and legal heirs of the deceased hirer would be allowed to access the locker and remove the contents on verification of authority of legal heirs and proof of death of the hirer.

b) In the event of death of both / all the joint locker hirers, all the legal heirs or any one of them as mandated by all legal heirs would be allowed to access the locker and remove the contents on verification of authority of legal heirs and proof of death of the locker hirer.

Before permitting surviving hirer and mandated legal heir to remove contents of a Safe Deposit Locker, the bank would prepare an inventory of the articles in the presence of surviving hirer, or heirs and two independent witnesses.

Joint account with mandate "Either or Survivor"/"Former or survivor"/ "Anyone or Survivors"/ "Latter or Survivor" 

With Nomination

At present B R Act (Section 45 ZE) does not provide nomination facility in respect of lockers with "Either or Survivor" or "Former or Survivor" or "Anyone or Survivors" or "Latter or Survivor" mandate.

Without Nomination

a) In the event of death of one or more but not all of the joint hirers, the surviving hirers will be allowed to access the locker and remove the contents on verification of proof of death of the joint hirers.

b) In the event of death of all the locker hirers, all the legal heirs of the deceased joint hirer or any one of them as mandated by all legal heirs would be allowed to access the locker and remove the contents on verification of the authority of legal heirs and proof of death of the locker hirer.

Before permitting the surviving hirers/legal heirs to remove contents of a Safe Deposit Locker, the bank would prepare an inventory of the articles in the presence of surviving hirer/legal heirs and two independent witnesses.

Source: IBA
GoodReturns.in 

Story first published: Friday, April 3, 2015, 9:27 [IST]
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