Ten months after the midnight heist in Bank of Baroda’s Kundarapalli branch here, the bank on Friday commenced measures to compensate customers for the jewellery lost .
Monetary settlement
The remediation process commenced with the monetary settlement for the lost jewellery based on the current day’s market value of Rs.2,556 per gram of gold, including wastage charges of 7 per cent payable by the bank.
The outstanding loan amount is being deducted from the settlement.
On day one, 140 customers received compensation that was directly credited to their accounts and a settlement to the tune of Rs.2.5 crore was made. The heist on January 23 this year, witnessed burglars decamping with over 5,000 sovereigns of gold jewellery mortgaged with the bank. The interim period had witnessed protests by customers demanding an early settlement for their loss, and the bank awaiting information from the police on the progress of the search for the UP-based gang and the status of recovery.
D. Karunanidhi, DRM, Bank of Baroda, Coimbatore, said the insurance claims could be made only after incurring the liability by making the settlement to the customers.
“We cannot keep the customers in waiting for long, and so we decided to go ahead with the settlement whatever be the outcome of the recovery.” Speaking to The Hindu , Superintendent of Police Kannammal said, property worth Rs.1.8 crore had been recovered out of the total police estimated loss of Rs.5 crore.
However, a temporary non-recovery status report was issued to the bank to facilitate remediation, she said.
Over 600 customers and 954 accounts are being processed for settlement for 5 days up to October 20.
