Letter of Indemnity
Sindhu
(Querist) 02 August 2017
This query is : Resolved
My dad expired & has sb accnt which has no nominee, so the bank official gave me the claim application form & one surety form . In the claim form it has been mentioned that to get letter of indemnity . What does letter of indemnity mean ?
Is indemnity letter & surety letter mean the same ?
Kumar Doab
(Expert) 02 August 2017
Both are different.
Kumar Doab
(Expert) 02 August 2017
GO thru:
RBI: Master Circular on Customer Service in Banks
20.2 Accounts without the survivor / nominee clause
In case where the deceased depositor had not made any nomination or for the accounts other than those styled as "either or survivor" (such as single or jointly operated accounts), banks are required to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.
https://www.rbi.org.in/scripts/bs_viewmascirculardetails.aspx?id=9008
Kumar Doab
(Expert) 02 August 2017
You may also go thru Bank's Deceased Depositor policy framed in accordance with RBI guidelines and it should be available on Bank's website and available in Bank.
Tender the requisite docs and obtain payment without any need of succession Certificate from Court.
Sindhu
(Querist) 02 August 2017
ok.. thank you..will go through details in RBI website.
Kumar Doab
(Expert) 02 August 2017
You are welcome................
Rajendra K Goyal
(Expert) 02 August 2017
Indemnity bond / letter indemnifies the Bank in case of counter claim.
You can submit application with Id. proof from all legal heirs, heir-ship letter / affidavit from known person ( with Id) to Bank having worth more than the claim. Indemnity from separate person good for the amount, known to Bank, not related to you (Bank may insist this condition). If all legal heirs agree, they can submit renunciation letter in favor of one legal heir.
Kumar Doab
(Expert) 02 August 2017
Bank might have asked for Disclaimer.
Bank is asking for Letter of Indemnity to safeguard it's interest and in line with RBI guidelines and you are saved of trouble and expenses to get Succession Certificate.
Sankaranarayanan
(Expert) 02 August 2017
Nothing more to be added, my learned friend filled it with his reply
Sindhu
(Querist) 03 August 2017
Indemnity from separate person known to the bank means - (Certificate from thalisdar, village accountant, village headman, panchayat headman, council member, or any gazetted official ...), @Rajendra K Goyal sir, u mean the same right ?
Kumar Doab
(Expert) 03 August 2017
It seems you are facing difficulty in understanding claim form.
The claim form given to you must be having narration of everything.
If all pages are not given to you, obtain complete set, again.
Kumar Doab
(Expert) 03 August 2017
The surety(ies) for value of claim are from persons to the satisfaction of bank.
Indemnity is from person(s) collecting payment.
Or download full claim form Bank’s website and GO thru e.g;
http://www.bankofindia.co.in/UserFiles/File/accounts_web_site_uploading_0412014.pdf
Kumar Doab
(Expert) 03 August 2017
Still if you are facing any difficulty take help of elders of the family, experienced persons, bank employees of same or other bank, retired bank employee, or even BM of the same bank in which deceased depositor had an account…..
Rajendra K Goyal
(Expert) 03 August 2017
Indemnity can be executed by any account holder of the Bank, no need to be executed by thalisdar, village
accountant, village headman, panchayat headman, council member, or any gazetted official.
Legal heir certificate is issued by Tehsildar.
Some Banks do away with legal heir certificate, they ask for affidavit from some account holder declaring the names, relation, age of legal heirs of the deceased.
Rajendra K Goyal
(Expert) 03 August 2017
You should take blank set of documents from the Bank and get the guidance from them to fill the blanks.
Kumar Doab
(Expert) 03 August 2017
Check the claim forms provided to you by bank once again.
The Bank officials in such matters are expected to be compassionate and helping the distressed family of the deceased depositor, and usually they are.
Understand the claim forms and requirements once again.
There seems to be some confusion at your end due to not having read and understood the claim forms properly.
It is otherwise simple.
Kumar Doab
(Expert) 03 August 2017
The Indemnity is to be signed by person(s) to whom payment is to be made.
E.g; at the link already provided to you:
Annexure-III
Indemnity Letter
for payment of balance in account of deceased depositors (To be used for cases other than nomination or is a joint account without survivorship clause)
4. We have requested you to pay the said balance in the said account(s) to all/……………………………………of us the undersigned ............................................................................................................................ (Names of persons to whom payment is to be made)
...............………………………………………………………………………………… …… [Name (s) of surety(ies)]
Kumar Doab
(Expert) 03 August 2017
Also go thru:
Annexure-II
Application Form for settlement of claim in deceased depositors’ accounts
(To be used when account has no nomination or is a joint account without survivorship clause)
Kumar Doab
(Expert) 03 August 2017
Hope you are clear now.
Or look around in the bank and there might be a counter on 'May I Help you' and they can help you.
Or look outside there might be some person outside the bank helping the customers/claimants for some fee or without fee.............
Or take help of elders of the family.................
Or let your local counsel do it for you..............
It is otherwise a simple matter on procedure and filling documents and attaching required annexures and submitting under proper acknowledgment.
Sindhu
(Querist) 19 August 2017
sorry for late reply, thank you all..
we have applied for legal heir certificate & is in process.
Kumar Doab
(Expert) 19 August 2017
You are welcome..............
