FAQ Deceased Accounts - Faq's

Ans: -  In case of Deposit Accounts, if Nomination has been registered with the bank, the nominee can apply on standard claim format by the bank furnishing the following information/documents:

• Full details of the accounts of the deceased depositor,
• Death Certificate issued by the competent authority.
• KYC (Know Your Customer) documents of the Nominee (Officially Valid Documents: OVD ).

In case Nominee is illiterate and affixes thumb impression, witness is required. The witness can be any of the following:

• Magistrate or Judicial official
• Any Officer of the Central / State Government or Any Officer of the Bank.
• Any two persons acceptable to the Bank.

Ans: - If the nominee is a minor, the person appointed by the deceased account holder to act on behalf of the minor, until he/she attains majority, has to submit to submit the documents mentioned in item no. 1. above.

Ans: - In the case of Current Account/ Savings Bank Account, the survivor(s) are required to transfer the balance to another account in their own name(s). If the survivor (s) do not have any other account, a new account may be opened after completion of the relevant formalities.

In case of Time Deposits two situations may arise as mentioned below:

3a) Joint Time Deposit Account with survivorship clause, where “E or S” form has been submitted by the depositors before the death of one of the depositors.

In such a case, if one of the depositors dies , then it is sufficient for the survivor(s) to make a simple application to the Home Branch along with a photocopy of the Death Certificate (Original to be produced for verification).

3b) Joint Time Deposit Account with survivorship clause, where “E or S” form has not been submitted by the depositors before the death of one of the depositors.:

In such a case, surviving depositor(s) and the legal heirs of the deceased account holder can jointly claim the amount (with interest) before maturity.

3c) In case of payment of Time Deposits before maturity, the interest shall be paid at the rate applicable for the period for which the deposit has actually run and will not attract penal charges levied on normal before maturity payment cases.

3d) However, on maturity, surviving depositor(s) can claim deposit without reference to legal heirs of the deceased constituent.

3e) In case of time deposits, on request from the legal heir(s)/representative(s)/nominees, the deposit can be split into two or more receipts individually in the name of legal heir(s)/representative(s)/nominees. It shall not be considered as premature withdrawal of the term deposit provided the period and the aggregate amount of the deposit do not undergo any change.

Ans: - When a joint account holder dies, in the absence of a clause like Either or Survivor ( E or S), Former or Survivor (F or S), Latter or Survivor (L or S), the balance can be paid jointly to the survivors and the legal heirs of the deceased.

Exampl e: If an account in the joint name of A and B, and if A dies, the balance will not be paid to B alone. It has to be paid jointly to B and to the legal heirs of A. The settlement can be made to the legal heirs of A either through legal representation or without legal representation as the case may be.

Ans : - In a deceased account where there is neither Survivorship clause nor Nomination, Bank delivers the assets only to the legal heirs of the deceased.

As disposal with legal representation is time consuming, Bank, for the convenience of the legal heirs and as a measure of customer service, has devised a system of settling the claim without production of legal representation on the basis of application, death certificate, letter of disclaimer, affidavit, Indemnity etc. The procedure for which, in brief, has been mentioned below:

The settlement of deceased constituent without production of legal representation is applicable only when:

• The customer has died INTESTATE.
• There are no disputes among the legal heirs and all the legal heirs (other than those who have furnished a Letter of Disclaimer) join to indemnify the Bank and there is no reasonable doubt about the genuineness of the claimant(s) being the only legal heirs.

Ans: - Depending on the amount of claim, the following documents need to be submitted.

For Claim Amount up to Rs. 5.00 lacs (Principal + Interest)

• i) Photocopy of Death Certificate (original to be produced for verification by the bank).
• ii) Photographs and KYC documents of all the claimants/ legal heir(s), (Original documents to be produced for verification by the bank.)
• iii) Account details of the Claimant(s), if available
• iv) Revised Claim form duly filled and signed by the Claimant(s), other than those who signed the letter of disclaimer.
• v) The Declaration in the Revised Claim Form regarding the Legal Heirs(s) of the deceased is to be signed by-
  • One independent person well known to the family of the deceased but unconnected with it and acceptable to the Bank OR
  • By any account holder of the Bank known to the family of the deceased but unconnected with it, OR
  • By any Govt. Official whose signature is verifiable by the Bank.
• vi) Stamped Letter of Indemnity from the Claimant(s).
• vii) Letter of Disclaimer – If applicable

For Claim amount above Rs. 5.00 lacs (Principal + Interest)

In addition to the documents listed from i) to iv) above, additional documents are required as under:

• Declaration in the Claim Form regarding the legal heirs of the deceased has to be sworn as an Affidavit before the Judicial Magistrate or Notary Public as under :
• • i) By one independent person well known to the family of the deceased but unconnected with it and acceptable to the Bank. OR
  • ii) By any account holder (KYC complied) of the Bank known to the family of the deceased but unconnected with-it. OR
  • iii) By any Govt. Official whose signature is verifiable by the Bank.
• Stamped Letter of Indemnity from the Claimant(s) plus one Surety good for the amount or two Sureties jointly good for the amount . Any legal heir(s) who has signed the Letter of Disclaimer in favour of other legal heir(s) may stand as surety if he/she is independently good for the amount of claim.
• Details of Sureties (with proof) for compilation of the Opinion Report on Sureties (as per Annexure-I)
• Letter of Disclaimer – If applicable

Ans: With a view to alleviate hardship to claimants in respect of missing persons, claims up to Rs. 1,00,000/- (Rs. One Lac only) will be entertained without insisting for valid death certificate. All such claims in respect of claims of missing persons, reported missing for a minimum period of one year shall be settled on production of following documents:

• i) FIR
• ii) Non-traceable report issued by the police authorities.
• iii) Indemnity from the claimant.

For claim amount above Rs. 1 lac : In case person is missing/not traceable (i.e., whereabouts of person is unknown for more than 7 years) an order/certificate of legal death/presumption of death issued by Court is required for settlement.