BCC: BR: 114: 14th February, 2022
CIRCULAR TO ALL BRANCHES/OFFICES IN INDIA
Digital Group, BCC
Baroda Sun Tower, Mumbai
Madam / Dear Sir,
Re: Debit Card – Insurance coverage for Debit card transactions
Please refer circular No HO: BR: 113:174 Dated 26th July 2021 regarding insurance coverage
for Debit card transactions from M/s National Insurance Company Limited.
In order to safeguard our customer’s interest against fraudulent siphoning of money from their
accounts using their Debit Card credentials, Bank has obtained new Debit card Insurance
package policy from M/s National Insurance Company Limited. The policy was effective from
27th July 2021 and valid up to 26th July 2022.
As per the RBI circular RBI/2017-18/15 DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6,
2017 regarding Customer Protection – Limiting Liability of Customers in Unauthorized
Electronic Banking Transactions, bank shall ensure that- A complaint is resolved and liability
of the customer, if any, established within such time, as may be specified in the bank’s Board
approved policy, but not exceeding 90 days from the date of receipt of the complaint, and the
customer is compensated.
In line with the above RBI circular, Bank board has approved Customer Protection Policy –
Limiting Liability of Customers in Unauthorized Electronic Banking Transactions, the policy
document enclosed with circular HO: BR: 110:130 dated 1st August 2018. In this regard
branches have to submit the claim to Insurance Company within 30 days from the date of
occurrence of the transactions in customer account.
The maximum time frame of 180 days of claims lodgment with the insurance company from
the date of occurrence of disputed transactions is internal agreement with bank’s team and
insurance company to get the maximum benefit from the insurance company.
To effective compliance of the above circulars and to get the compensation to the customer
within timeline, we required to submit the claim document to the insurance company to settle
the claim as early as possible. As per the circular issued HO: BR: 113:174 Dated 26th July
2021 regarding Insurance coverage for Debit card transactions, it has been mentioned that
claim can be lodged in insurance company within 180 days from date of occurrence of
disputed transaction which is contradictory to RBI and CPP policy and delay in submitting the
claim documents, bank may not able to compensate to the customer within 90 days. As per
bank’s approved policy, the process for fraudulent transaction should be completed within 90
days. Hence, we proposed to change time frame for Branches/Region/Zones to avoid delay /
rejection of Insurance Claim.
Digital Group 1
Chief Digital Officer, Baroda Sun Tower, C-34, G-Block, Bandra Kurla Complex, Mumbai 400 051, India.
फोन/Ph: 91 22 67592873 | ई मे ल/ E Mail: cdo.sect@bankofbaroda.com | वेब/ Web : www.bankofbaroda.in
We append the clause of important terms & conditions of policy of the above said circular
and the clause regarding the intimation and submission of the full set documents as per the
checklist for insurance claim has been changed as under:
Existing Terms& conditions of policy Proposed Change
The claims can be lodged with the insurance The claims can be lodged with the insurance
company within a maximum period of 180 company within a maximum period of 30
days from the date of occurrence of disputed days from the date of occurrence of disputed
transactions. Therefore, branches are transactions. Therefore, Branches are
requested to submit the all documents in one requested to submit all the documents in one
set immediately on receipt of the relevant set immediately on receipt of the relevant
documents for insurance claim received documents for insurance claim received
from the customer. from the customer.
This will facilitate to complete the Insurance claim process within minimum period of time to
avoid/reduce customer’s escalations.
Hence, we request Branches/Region/Zones to adhere to new time frame and avoid delay /
rejection of Insurance Claim.
All other terms and conditions of the policy will remain same as per pervious circular.
Yours faithfully,
Akhil Handa
Chief Digital Officer
Digital Group 2
Chief Digital Officer, Baroda Sun Tower, C-34, G-Block, Bandra Kurla Complex, Mumbai 400 051, India.
फोन/Ph: 91 22 67592873 | ई मे ल/ E Mail: cdo.sect@bankofbaroda.com | वेब/ Web : www.bankofbaroda.in
