If you are stuck in such a situation, here is what to do.

Mr. Sameer recently discovered that his late mother, Mrs. Anjali, had opened two Fixed Deposits (FDs) with Apex Commercial Bank a few years before she passed away. Upon contacting the bank’s branch in the city of Chandrapur, he was relieved to find that he was the registered nominee for both deposits. However, his relief was short-lived as an extensive search of his home yielded no sign of the physical FD certificates.

Mr. Sameer visited the bank branch to inquire about the procedure for claiming the funds. The branch manager informed him that since the original FD certificates were lost, he would need to complete two key formalities. First, he must file a report (often an FIR or a lost document report) with the local police. Second, he must execute an indemnity bond, which should be prepared by a lawyer. Once these are ready, he can submit them along with the bank’s required forms and his personal identification documents to the branch to process the claim.

This situation left Mr. Sameer with several questions regarding the indemnity bond’s format, the value of the stamp paper required, whether separate bonds and police reports were needed for each FD, and the potential legal fees involved. Although he works in Vishaknagar, he would need to travel back to Chandrapur to handle these formalities.

Advice in such cases

Navigating the process of claiming assets as a nominee when documents are lost can be daunting. Here are some steps to manage the situation effectively:

• Communicate Clearly with the Bank: Maintain open and documented communication with the bank. Request a checklist of all required documents in writing (via email, if possible) to avoid confusion and repeat visits. Ask for the bank’s preferred format or a proforma for the indemnity bond.
• Organize Your Documents: Gather all available documents, such as the death certificate of the original depositor, your identity proof (Aadhaar Card, PAN Card), and your address proof.
• Follow Procedure Systematically: Handle each step methodically. First, get the police report. Then, approach a lawyer for the indemnity bond. Finally, submit the complete set of documents to the bank.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The legal framework for such cases primarily involves banking regulations and contract law:

• The Banking Regulation Act, 1949: Sections 45ZA to 45ZF of this Act govern the facility of nomination for bank deposits. Section 45ZB specifically empowers the nominee to receive the payment from the bank upon the death of the depositor, giving a valid discharge to the bank.
• The Indian Contract Act, 1872: The indemnity bond is a contract of indemnity governed by this Act. By signing it, the nominee agrees to compensate the bank for any loss it might suffer if another person later makes a valid claim on the same FD with the original certificate.
• State Stamp Acts: The value of the non-judicial stamp paper required for the indemnity bond is determined by the Stamp Act of the state where the bond is executed (in this case, the state where Chandrapur is located).

If you are the complainant

As the complainant or claimant in this process, your goal is to satisfy the bank’s requirements to release the funds. Your actions should be proactive and precise.

• Initiate the Claim: Formally write to the bank branch where the FDs are held, stating your intention to claim the proceeds as the nominee and informing them that the original certificates are lost.
• File a Police Report: Visit the local police station to report the loss of the FD certificates. You will need a copy of this report for the bank. Usually, a single report mentioning all lost documents is sufficient.
• Engage a Lawyer for the Indemnity Bond: The indemnity bond is a crucial legal document. It is essential to have it drafted correctly to be acceptable to the bank.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Submission: Submit the claim form, death certificate, your KYC documents, the police report, and the notarized indemnity bond to the bank. Keep copies of all submitted documents for your records.

If you are the victim

Being in a position where you cannot access funds rightfully yours due to lost paperwork can feel victimizing. To protect your interests and expedite the process, follow these steps:

• Assert Your Right as Nominee: Understand that as a nominee, the law gives you the right to receive the funds. The bank’s procedures are in place to protect themselves from future disputes.
• Seek Professional Guidance: The process involves legal documents like an indemnity bond. Missteps can cause delays or rejections.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Be Patient but Persistent: Bureaucratic processes can be slow. Follow up with the bank regularly and professionally after submitting your documents.

How the police behave in such cases

The role of the police in cases of lost documents is purely procedural. They are not investigating a crime but are simply creating an official record of the loss. When you approach them to report a lost FD certificate:

• They will likely take down the details of the lost documents (FD numbers, bank name, holder’s name).
• They will issue a “Lost Property Report,” “Lost Certificate Report,” or a stamped copy of your application. This document serves as proof for the bank that the loss has been officially reported.
• The police will not conduct an investigation, search for the documents, or get involved in the dispute between you and the bank. Their involvement typically ends after providing you with the report.

FAQs people normally have

What is the format of an indemnity bond?
While many lawyers have standard formats, it is always best to ask the bank if they have a specific proforma or a list of clauses they require. Using the bank’s preferred format can prevent the bond from being rejected, saving you time and additional legal fees.

What value stamp paper is needed?
The stamp duty for an indemnity bond varies by state and is often linked to the amount being indemnified (the value of the FDs). A lawyer practicing in Chandrapur will be familiar with the state’s specific Stamp Act and can advise on the precise value required.

Do I need separate indemnity bonds and FIRs for each FD?
Generally, no. You can usually file one police report that lists all the lost FD certificates. Similarly, a single, comprehensive indemnity bond that clearly details both FDs can be prepared on a single stamp paper of the appropriate value. However, confirm this with the bank, as some may have internal policies requiring separate documentation.

What are the typical lawyer fees for an indemnity bond?
The fees can vary significantly based on the city, the lawyer’s experience, and the complexity of the matter. For drafting and notarizing an indemnity bond, fees could range from a few thousand to a more substantial amount, especially if it involves more consultation and follow-up.

What evidence is required?

To process the claim for a lost FD, the bank will typically require the following:

• A completed claim application form provided by the bank.
• The death certificate of the original depositor (original and a copy for verification).
• KYC (Know Your Customer) documents of the nominee, including identity proof (like a PAN Card or Passport) and address proof (like an Aadhaar Card or utility bill).
• A copy of the police report (FIR or Lost Document Report) for the lost FD certificates.
• A duly executed and notarized Indemnity Bond on non-judicial stamp paper of the correct value.
• In some cases, the bank may also ask for a surety from one or two individuals with sufficient financial standing.

How long will the investigation take?

There is no police “investigation” in the criminal sense. The process is an internal verification by the bank. The time taken by the bank to process the claim after you have submitted all the required documents can vary. It depends on the bank’s internal procedures, the efficiency of the branch, and the clarity of the documents provided. Typically, if all paperwork is in order, the process can take anywhere from two to six weeks. If the bank requires additional clarifications or documents, it may take longer.

Advocate Sudhir Rao, Supreme Court of India