CLAIM SETTLEMENT (Deceased Depositor Claim Cases) SAVINGS BANK ACCOUNTS

Transcription

1 CLAIM SETTLEMENT (Deceased Depositor Claim Cases) SAVINGS BANK ACCOUNTS When the depositor dies, the proceeds can be paid to the Nominee or legal heir, following the procedure for deceased depositor s Claim cases as discussed here under. In the case of Minor Accounts, whether opened by the minor himself or by the guardian, when the minor dies it becomes claim case. The basis for claim settlement are: A. Nomination B. Legal evidence C. In case of no nomination - without production of legal evidence up to a balance of Rs.1 Lakh. S B Claim settlement on the basis of nomination Application to be accompanied by Pass Book and death Certificate of depositor- if any nominees have predeceased the depositor, death Certificate of such nominees also to be attached. The death certificate may be original or photocopy of original duly attested. The sanctioning authorities may attest the copy after verifying with the original. Once the intimation about the death of the depositor is received in the Post Office, it is the responsibility of the Office to note a remark in the Ledger, supply a claim application to the nominee and to advise him to prefer the claim. An entry also is to be made in the Register of claim cases. If the nominee is a minor, the claim will be preferred by the person appointed by the depositor-if no such person appointed, by guardian on behalf of the minor. No payment can be made direct to the minor. The amount will be paid to the appointed person or to the guardian for the use of minor.

2 Claim Sanctioning Authorities on the basis of nomination Name of the authority Limit 1. SPMs in Time Scale Sub Offices Rs SPMs in LSG SOs Rs SPMs in HSG SOs Rs Head Postmasters Any amount If there are more than one nominee, the nominees can make a joint claim or separate claim (each nominee making claim his share). If there is more than one a/c in the name of a person, separate claim is to be preferred. THE LIMITS FOR THE VARIOUS AUTHORITIES MEANS: For Savings Accounts and NSS-92 Accounts: balance in the account at the time of death including the interest for the preceding financial year of death. For RD Accounts: Amounts payable to the nominee or legal heir on the death of the depositor have bee given in the Tables annexed to the RD Rules. For TD/MIS Accounts: Principal amount plus interest accrued and unclaimed as on the date of death of depositor. If the balance (amount of claim) in an account standing at a Sub Office is above the limit of a SPM, the same will be settled by the Head Postmaster. Action on receipt of Claim application An application with accompanying documents when received in a Sub Office is to be impressed with a date stamp and forwarded to HO where the account stands- for verification of balance and nomination and court attachment with H.O Records. Even if the claim amount is within the limit of SPM, the application is to be forwarded to the HO for verification of balance/nomination. In the case of RD or MIS, balance is to be verified with SO ledger before forwarding to HO.

3 Action at the Head Office on receipt of claim application. Balance and nomination particulars and whether there is any court attachment are to be verified and claim forwarded to the Sub Postmasters if it is within their limit for sanction. HO should also see that in case of accounts pledged as securities, the pledge is to be released. If the claim is to be settled by the H.O, Head Postmaster will scrutinize the application and the death certificate and issue sanction immediately. Nomination claim can be settled immediately on death. Remarks on claim settlement are to be noted on ledger card, register of Nominations, SB-3 and application for nomination if any. If the nominee cannot produce the passbook, approval of the head of the circle is to be obtained by the authorities. Original sanction memo with passbook to be sent to the claimant by registered post; One copy to the respective SPM, One to SBCO and One will be the office copy. Verification of death certificate or fact of death is not necessary unless there is reason to suspect its genuineness -this is applicable to claim settlement on other basis like legal evidence and without nomination/legal evidence as well. A copy of the SB Order no. Dated.... on this subject is given as Annexure. Payment of the claim The claimant can take payment of the amount from the Office where the account stands by surrendering the sanction memo and making application for closure in SB- 7-A with Pass Book. Identity of the claimant will be established by any of the method of identification like attestation. Clarification regarding settlement of claim in favour of nominee. The Post office is required to give precedence to the nominee over all other persons staking claim on the amount when settling deceased claims cases and such payment to the nominee absolves the Post office from all future liability in respect of the deposit. (DG Post letter No /93-SB dated and DG Post letter No.SBPG/Misc- 2/2006 dated )

4 SB Claim settlement on legal evidence If there is no valid nomination at the time of the death of the depositor, Claim can be settled on production of legal evidence. The legal evidences are: Probate of will; Succession Certificate & Letter of administration The power of various claim-sanctioning authorities is same as on the basis of nomination. However, production of legal evidence is not necessary for claims not exceeding Rupees ONE Lakh. In order to determine whether production of legal evidence is necessary or not, balance of all the accounts including the interest up to the end of the financial year preceding the year of claim and not year of death is to be taken Discretionary claim Up to One lakh Who should claim? One of the legal heirs can prefer claim after getting the consent Statements from other adult claimants. In case of minor heirs, guardian of the minor will prefer the claim or give the consent on behalf of the minor. The personal law of the deceased depositor determines legal heirs. Claim Application Form (SB- 84) The claimant is to prefer the claim in the prescribed Form SB-84 All the SB Accounts without nomination (whether Savings Accounts, Recurring Deposit, Time Deposit, Monthly Income Scheme and NSS-92 standing at different Post Office in India ) in the name of the deceased should be shown in one application only. The total amount of the claim on this basis should not exceed Rs 1,00,000/-. If exceeds the amount i.e., one lakh succession certificate is necessary. The form should be accompanied with death Certificate of the deceased Depositor, Passbook along with consent statements from other legal heirs if any.

5 Sanctioning Authorities and their power Name of the Authority Limit (in Rupees) Time Scale Departmental Sub Postmasters 1000 Sub. Postmasters in LSG 2000 SPM/DPM/Postmasters in HSG (NON-GAZETTED) 5000 Deputy Postmaster /Senior Postmasters/ Deputy Chief Postmasters/ Superintendent of Post Offices / Deputy Superintendent (ALL GAZETTED) Chief Postmasters in Head Offices, Senior Superintendents (All Gazetted Group-A) Regional Director/ Director (GPOs in Mumbai and Kolkata) Chief Postmasters General / Postmaster General (Headquarter and Region) Note; For the purpose of the limits, the amount at credit at the time of death of the depositor plus interest accrued up to the preceding financial year of death is to be taken. For PPF and SCSS claims sanctioning authority is Postmaster of Office of deposit Claims in respect of Sub-Post office Accounts in excess of the limit of Rs.5000/ will not be settled by the Head Postmasters (Non Gazetted) but by the Divisional Superintendent or higher Officers within their limits. Senior Postmasters can settle the Sub Office Claims in excess of the limit of Sub Postmasters.. Eg: A claim for Rs 3000/- in respect of a savings Account in a Time Scale SO under a non-gazetted HO will not be settled by the HPM but by the Divisional Superintendent

6 only. If the SO is under the Gazetted HO, the Senior Postmaster of the H.O can settle the claim. If the claim includes accounts standing in different Post Offices, any of the authorities having power to settle the total amount and having at least one account in a Post Office under his jurisdiction can settle the entire claim. Eg: The deceased depositor had one Savings Account with Rs 1800/- at Trivandrum Head Post Office and another TD Account with Rs 20,000/- at Mysore HO. The claim can be settled either by the Senior Superintendent of Pos of Trivandrum or Mysore. [If the claimant cannot produce the passbook, the authorities can waive the production of passbooks within their limit on being satisfied about the reason adduced by the claimant.] Time limit for claim settlement The claim without nomination or legal evidence can be settled only after three months from the date of death the depositor. Claimant's declaration on oath or solemn affirmation If the claimant makes a declaration on oath or solemn affirmation before any claim sanctioning authorities, the claim can be settled without any verification on any of the statements in the claim form or on the documents accompanying. This declaration can be made before any claim sanctioning authorities only. Inspector of POs or Assistant Superintendent of Post Offices is not claim sanctioning authorities and hence they cannot administer oath for the claimants. Normally the claimants are making the declaration before the Sub Postmasters. In order to make a declaration before the claim sanctioning authorities, it is not necessary that the authority should be competent to sanction the claim for the amount or one of the accounts should be in his Office or jurisdiction. Even a Class- III Sub Postmaster can administer the oath for a claim for Rs 1,00,000/- even though no account is standing in his Office.

7 Attestation of the claim in case no declaration made If the claimant cannot make a declaration before any claim sanctioning authorities, the claim is to be attested by any of the Prescribed authorities. In the Department of Posts, an Officer not below the rank of an Inspector of Posts can attest the claim form. (The form of attestation is just below the declaration in the SB-84) The attesting authorities are required to attest all the documents accompanying the claim form like copy of death certificate and consent statements. If any authorities not belonging to the Department Of Posts attest the claim, signature of the attesting authorities is to be verified by any of the Officials of the Department of Posts. Even Sub Postmasters and Branch Postmasters are competent to make such verification. Once the claimant has made a declaration before the claim sanctioning authorities, no further attestation is necessary. Action on receipt of claim form at a Sub Office Once the claimant has made a declaration on oath or submitted a claim duly attested with the documents, the same should be impressed with the Office date stamp and sent to the Head Office (where the account stands) for verification of balance and also to verify the court attachment if any. If there are more than one accounts, balance of all the accounts are to be verified by the respective Head Post Offices and thereafter the claim sent to the competent authority for issue of sanction. Issue of sanction The sanctioning authority will scrutinize the application to see that: Particulars of all the accounts are correctly entered and the balance verified by the Head Postmaster. It should also be seen whether there is any court attachment against any of the accounts. Near relatives shown in the claim form are eligible as per the personal law. A death certificate issued by the competent authority accompanies the claim and it is in order. No verification of the death certificate or of the fact of death is necessary unless there is reason to suspect its genuineness. Consent statements from all the adult near relatives accompany the claim application - in the case of minor relatives guardian is to give the consent. Whether the claimant has made a declaration before a claim sanctioning authority. If no declaration is made, whether the prescribed authorities have attested the claim.

8 Whether the authority himself is competent to settle the claim (in terms of the amount and also jurisdiction on the accounts) whether three months have elapsed after the death of the depositor. If any defect of consequence is noticed, the authority will address the claimant direct to complete the documents, giving necessary guidance. Raising objections of trivial nature and unnecessary verification should be avoided in order to settle the claim expeditiously. After scrutiny the authority will record the decision and issue sanction in the prescribed format. The authorities may waive production of passbooks and issue sanction without the order of the Head of the Circle if they are satisfied about the reason for not production. The claimant will be entitled to interest up to the end of the month preceding the month of payment. Payment of the claim amount The claimants have to take payment of the amount from the respective Post Offices as in the case of nomination claim. Validity period of claim sanctions The claim sanction will be valid for one year from the date of issue, after that; the same is to be revalidated by the sanctioning authority at the request of the claimant (with the original sanction) explaining the reason for not taking payment. Payment of Claim in respect of RD/TD In the case of RD or TD Accounts, it is not incumbent upon the claimants to take payment of the amount immediately. They can take payment on the maturity of the accounts. They may also get the accounts transferred to their names on making application in the prescribed form provided the claimants are not more than two. Disposal of Sanction Memo and the pass book The claimant will present the original sanction memo with the passbook and application for withdrawal. The payment will be made as in the case of closure of account. The Postmaster will record a remark " payment made to claimant on.." under his dated signature with designation stamp on claimant's copy of sanction which will be attached with the warrant of payment and sent to the Control Organization. Claim in respect of MIS Accounts In the case of death of a depositor before maturity, the nominee or legal heir is not entitled to continue the account and claim monthly interest. The same is to be closed and the amount of deposit refunded to the claimant with interest up to the end of the month preceding the month of payment (up to a maximum of 72 installments of interest including the interest already paid to the depositor). There will not be any penal deduction of the principal amount. When the MIS accounts is

9 closed after 6 years such accounts are eligible for bonus-whether it is closed by the depositor or the nominee. The preceding month for MIS is not preceding calendar month but completed month. Payment of claim amount by cheque or money Order If the claimant desires in writing, the amount may be remitted to him by money order at his expense or by crossed cheque in case the amount is not less than Rs. 100/-. The claimant may have to give the sanction memo, application for withdrawal duly completed and the passbook with a request for remitting the amount by MO/Crossed Cheque at a Sub or Head Office where at least one of the accounts stands. After verifying the documents and identity of the claimant the documents will be forwarded to the respective Post Office for issue of Money Order or cheque. (in the case of a Sub Office, the cheque will be obtained from the Head Office) The cheque will be sent to the SPM or Head Postmaster of the place where the claimant resides for delivery to him under quittance. The acquittance for the cheque will be sent to the HO issuing the cheque, which in turn will forward to the SBCO. Maintenance of the register of deceased claim cases All claim sanctioning authorities should maintain the register. As soon as the intimation of the death of the depositor is received, a claim application is to be supplied and an entry to be made in the Ledger and the Register. The claim will be treated as pending till the amount is paid to the claimant. The Register is to be reviewed by the Head of Office every month to see that no case is unduly delayed. A summary of the pending cases with break-up showing action taken for the settlement of delayed cases also to be given at the end of every month. SAVINGS CERTIFICATES Claims relating to Savings Bank accounts and Savings Certificates are to be preferred separately as the powers for their claim settlement are conferred on the authorities as per different statutory rules. Basis for claim settlement in Certificates are the same as in the case of Savings Bank. The changes in the matter of claim sanctioning authorities, their power etc. is discussed below. Nomination claim The nominee is to make the claim in the Form available in the SB Manual Volume II to the Postmaster / Sub Postmaster of the Office at which the Certificates stand registered. If there is more than one nominee all the nominees may have to make a joint claim. If there are Certificates registered at different Offices and the

10 nominee(s) are the same, application claiming all the certificates may be submitted in any one office where at least one of the Certificate stands registered. The application form should be accompanied by Death certificate of the deceased holder and Death Certificate of the predeceased nominees if any. Sanctioning authorities and their powers Head Postmasters and Departmental Sub Postmasters are competent to settle Certificates claims on nomination irrespective of the amount of the claim. In as much as the Sub Postmasters (including SPMs of Time Scale Sub Offices) can settle nomination claims of any amount in respect of certificates registered in Sub Offices. Head Postmaster will not have jurisdiction in SO claims as in the case of Savings Bank claims. Option for immediate encashment or encashment after maturity If the holder of the certificate dies before maturity of the certificates, claimants - nominees or legal heir have the option either to encash the certificates immediately on the settlement or to continue the same till maturity in the name of the deceased holder. If the nominee/legal heir is not more than one, he can also opt for getting a duplicate certificate issued in his name (in the same denomination with original date of issue). For this he may have to submit the prescribed application in NC-34 once the claim is settled. If there are only two adult claimants they may opt for duplicate certificate in there names-either Joint A Type or Joint B Type. If there are two or more nominees, they have the option to subdivide the certificate and have fresh certificates issued in their individual names in appropriate names. Procedure for settlement On receipt of claim application, the Sub Postmaster/ Head Postmaster will verify the claim with the Nomination register and also examine the death certificate to see that it has been issued by the proper authority, it bears the seal and signature of the authority and the name of the holder as per the original application and the death certificate agree. If the claim is in order the authority will issue the sanction immediately. The sanction should contain the provision for option that may be exercised by the claimant. A note on claim settlement may have to be made in the original application and also in the Nomination register.

11 Verification of the death certificate or enquiry about the fact of death is not necessary unless there is reason to suspect its genuineness. Also, sanction in respect of nomination claim settlement can be issued immediately. If the certificates stand registered at different Offices, nomination and other particulars like court attachment, payment after issuance of duplicate etc. may have to be verified from the respective offices before issue of the sanction. The Certificates submitted by the claimant along with the claim application may be returned to the claimant after verifying the particulars noted on the application. Certificates need not be retained by the claim sanctioning authorities as in the case of Savings Bank claim where the claimants have to make over the passbook. In the case of certificate claims, if the claimants are not in a possession of the certificates, they may have to apply for and obtain duplicate certificates (after furnishing indemnity bond with sureties wherever necessary) after the claim is admitted. Encashment by the claimants The nominees or claimants can take payment of the certificates from the office of registration on presentation of the certificates duly receipted on the reverse along with his copy of the sanction memo. The payee (claimant) may have to be identified by a respectable person known to the Post Office. Other methods of identification like passport or driving license in the name of the claimant also can be accepted for this purpose. The Postmaster will record a remark - "Payment made to the claimant on.." under his dated signature with designation on the claimant's copy of the sanction and the same will be attached with the discharged certificate. If the certificates stand registered at different Post Offices, payment in respect of all the certificates can be obtained from the Office, which had issued the sanction (after verification of the issue particulars from other offices originally). Once the certificates are taken payment from an office other than the office of registration, the paying office may have to intimate the discharge of the certificates to the office of registration by an Advice of Payment. If the claimants opt for getting the certificates transferred to their name, they have to submit the prescribed application for that along with the prescribed fee for transfer. Fee for transfer of NSC: Rs.5/- per certificate. for KVP-no fee. Payment can be made by means of crossed cheque or by money order as in the case of Savings Bank claim. The sanction for claim will be valid for a period of one year from the date of issue.

12 Claim on the basis of legal evidence The power of Sub Postmasters of the Time Scale Sub Office for the claim settlement on the basis of legal evidence is only up to Rs 1000/- as in the case of SB Claims. The Divisional Head will settle claim relating to Certificates registered at Time Scale S.O in excess of the limit of the SPM. SPMs of LSG Sub Office and above have powers to settle claims of any amount if it is supported by legal evidence. Claims without nomination or legal evidence (Discretionary claims) up to Rs.1 Lakh Claim is to be preferred in the prescribed form SB-84. All the Savings Certificates without nomination wherever they are registered should be shown in one application. If the value of the certificates without nomination (including the accrued interest up to the completed year as on the date of death of the holder) of any type of Certificates viz. NSCs and KVPs taken together exceeds Rs 1,00,000 /- legal evidence will be necessary for the settlement of those certificates. Power of various Claim Sanctioning authorities on the discretionary claims is as in the case of Savings Bank Claim as shown below. Sanctioning Authorities and their power Name of the Authority Limit (in Rupees) Time Scale Departmental Sub Postmasters 1000 Sub. Postmasters in LSG 2000 SPM/DPM/Postmasters in HSG (NON-GAZETTED) 5000 Deputy Postmaster /Senior Postmasters/ Deputy Chief Postmasters/ Superintendent of Post Offices / Deputy Superintendent (ALL GAZETTED) Chief Postmasters in Head Offices, Senior Superintendents (All Gazetted Group-A)

13 Regional Director/ Director (GPOs in Mumbai and Kolkata) Chief Postmasters General / Postmaster General (Headquarter and Region) Claims in respect of Certificates of Sub Offices exceeding the power of SPMs will be settled by the Divisional Heads / DPS/PMG within their power. Claim will be admitted after verification of the issue particulars from the Offices of Registration and after making a declaration by the claimant before any claim sanctioning authorities as in the case of SB Claim. If the claimant does not make a declaration any Gazetted Officer etc. as in the case of Savings Bank claim should attest it. Claim without nomination or legal evidence will be sanctioned only after a period of three months from the date of death of the holder. All other procedure is just like nomination claim settlement. PUBLIC PROVIDENT FUND ACCOUNTS The provisions contained in Para 12 of PPF Scheme 1968 govern claim Settlement relating to Public Provident Fund. The claim Sanctioning Authority is Postmaster of Office where the account stands open. The basis for the claim may be on nomination, legal evidence or without nomination and legal evidence up to a balance of Rs 1 lakh i.e., in the case of accounts without nomination, production of succession certificate need not be insisted for, if the claim up to Rs 1 lakh. On the death of the subscriber, balance in the PPF account does not cease to earn interest. Interest is admissible till the end of the month preceding the month in which payment of deposits is made to the nominee/legal heir of the deceased subscriber as in the case of SB Claim. Nomination claim The nominee or nominees may make an application in the Form G or as near thereto as possible to the Head Postmaster with the following documents: Death certificate of the subscriber. Pass Book Death Certificate of the deceased nominee (s) if any. On receipt of claim application, the balance in the account will be paid to the nominee/s after making adjustment, if any, in respect of interest on the loan taken by the subscriber. If nominee is a minor, the amount may be paid to the parent or guardian of the minor.

14 Claim without nomination Where there is no nomination in force, the balance after adjustment, if any, in respect of the interest on loans taken by the subscriber may be refunded to the legal heirs of the deceased subscriber after getting an application in Form G. If the balance is up to Rs 1 lakh the relevant documents are to be produced along with the application. G.L. Dept. of Posts, Lr. No. 113-b/2003-SB, dated Delay in settlement of deceased claim cases on account of of death certificate issued by Competent Authority The Directorate has been receiving complaints of delay in settling deceased claim of POSB/POSC due to verification of documents. Vice Directorate's Letter No /88-SB, dated , it was clarified that the genuineness of the death certificates may be got verified by the local authorities themselves except where genuineness cannot be verified locally. The death certificate produced by the claimants, where found certified by the Competent Authority, should be accepted for settlement of the deceased claim cases. Over the period of time, it has been noticed that delay in settlement of deceased claim cases continues. In order to mitigate the inconvenience to the claimants, it is reiterated that the sanctioning authority while observing the guidelines issued vide this Office Letter No /90-SB, dated may accept the death certificate issued by the competent authorities mentioned in this office Letter No. 12-5/70-SS, dated Verification of Death Certificate given in original or certified by the Competent Authority should be necessary only when there is a doubt about the genuineness of the certificate. In all cases, the claimant may be made to sign the certificate before admitting the claim and payment made only after the identity of the claimant is established. Above instructions may be brought to the notice of all concerned. Any delay in the settlement of deceased claim cases beyond 30 days after submission of complete claim should be viewed seriously.