Chapter 19 – Settlement of Deceased Claim Cases
172. Payment of the amount of Savings Bank Accounts in the name of
Deceased Depositors
(1). Basis of Settlement of claims
The claim to the amount of National (Small) Savings Schemes Accounts/Certificates standing in the name of deceased depositor(s) may be made on the basis of
(a). Nomination
(b). Legal evidence
(c). Without the production of legal evidence at the discretion of sanctioning authority up to the limit fixed by Ministry of Finance which is Rs. 5,00,000/- at present. If the claim exceeds the prescribed limit which is now Rs. 5,00,000/-, the claimant should be advised to obtain a succession certificate from a competent court of law.
Note 1: - The prescribed limit shall be applicable to each Account/Registration Number
in case of Certificate separately.
(2). Account/Certificate in respect of which nomination exists
(i). In case the deceased depositor of the National (Small) Savings Scheme has made a
nomination and registered the same with the Post Office and in force at the time of death of the depositor, the nominee/nominees of the deceased depositor are entitled to receive the amount at credit of the deceased depositor immediately after the death, irrespective of the amount, without production of legal evidence.
(ii). The nominee/nominees may make an application in prescribed Form (in duplicate) to the Post Office where account stands along with the proof of death of the depositor in original and passbook/certificates. If a claimant is not able to hand over original death certificate/proof of death, the Postal Authority receiving claim can accept photo copy of the same by comparing with original. ln such a case, that authority should write on the photocopy "Compared with original and found correct" under dated signatures and designation stamp.
(iii). Where there is more than one nominee, if any nominee(s) has also died, the proof of death of such nominee in original should also be submitted along with claim application form.
(iv). If there are two or more surviving nominees, the eligible balance shall be paid in the proportion as specified by the depositor while making the nomination, and if no such proportion or share is specified, then in equal proportion to all the surviving nominees to be paid. On the death of the last surviving nominee or the sole nominee, the claim in respect of the account will be settled in favour of the legal heir of the last deceased nominee and not in favour of the legal heir of the deceased depositor.
(v). If any nominee dies, his/her specified share in the eligible balance shall be distributed among the surviving nominees in the same proportion as their specified shares.
(vi). Where the nominee is a minor, the payment shall be made to a person appointed by the depositor to receive such payment and, if no such person has been appointed, payment to be made to the guardian of the minor.
(vii). The claim should be submitted in the Post Office where account/certificate stands. If the claim is submitted at any other post office, the GDS BPM/SPM/PM/Sr. PM/CPM/Director should accept the claim application form along with documents and after accepting witnesses, forward the case along with all documents to the post office where account stands by Service Insured Post on the day of its receipt.
(viii). On receipt of the claim form at the post office where account stands, the Postmaster will verify the following:
a. Name of depositor in Finacle with Passbook/Certificate and in death certificate.
b. Details of nomination in Finacle
c. Balance available in Passbook/Certificate with Finacle
d. Verify any Court order/Tax authority, /Freeze/Pledge/objection is not pending against that Account/Certificate.
e. The nominee(s) should be satisfactorily identified by taking lD proof and address proof.
(ix). After verification of claim in all respect as mentioned above, the concerned Postmaster shall enter details of claim in deceased claim/nomination register and issue a sanction for payment of the balance to the nominee(s) on the claim form.
Note: If claim is received from other post office, claim form duly sanctioned should be sent to that post office by Service Insured Post for taking acquittance from the claimant. The Post Office where claim was submitted, shall obtain acquittance from claimant on the claim form and in case of pre-printed certificates, collect original certificates with signature of the claimant and send back the same to the Postmaster of office of payment by Service Insured Post. Once claim form and original certificates (if any) is/are received back, the payment office will close account/ discharge certificates and crossed cheque should be sent to the Post Office by service Insured Post. Details of cheque sent by insured post should be noted on the claim form. In case the claimant desires payment into his/her POSB Account, he/she should mention POSB account number along with copy of first page of passbook in the acquittance portion of the claim Form. In case claimant desires payment into his/her other Bank account, he/she should mention account number, MICR / IFSC Code, Bank Name along with copy of first page of passbook/cancelled cheque.
(x). No separate account closure form is required to be taken and receipt of the amount should be taken in the sanction issued on claim form itself at the time of payment which will be treated as account closure voucher. Photocopy or Duplicate Copy of this form should be kept in the claim case file as office copy.
Note: If the payment to the claim is preferred by transfer to PO Savings Account or Bank Savings Account of the claimant, the signature of the claimant may be obtained in acquittance part of claim form at the time of acceptance of complete claim documents. After the claim is sanctioned, the amount shall be transferred to the Claimant’s account and intimation shall be sent to the claimant along with the copy of the account closure report.
(xi). Where there is more than one surviving nominee, payment should be made to all the nominee(s) as per their share(s) specified, after taking acquittance on sanction.
Note: In case of exceptional circumstances where all the nominees are not in a position to submit claim or able to attend post office jointly, they may authorize nominee(s) to claim/take payment and the claimant nominee may submit disclaimer from other nominees in Form 14 of GSPR-2018 along with their KYC documents. In such case, payment can be made to the claimant nominee(s).
(xii). In case, the nominee(s) has lost the original Passbook/certificate(s) or is otherwise not in possession of it, he/she/they may apply for issue of Passbook/certificate(s) in his/her/their own name after his/her claim has been admitted and sanction is issued by the competent authority. The procedure as laid down in the relevant Rules for issue of duplicate certificate/ passbook will apply mutatis mutandis.
Note 1: The Postmasters of all Sub Offices/Head Office can sanction the claim of an account/certificate where nomination is in force and registered in respective Post Office, irrespective of any limit in all National (Small) Savings Schemes.
Note 2: All claims in respect of discontinued schemes will be sanctioned at respective Head Post Office. The concerned SPM will send claim form along with documents to the concerned Head Post Office.
Note 3: Where, Account/certificates stands in GDS Branch Post Offices and nomination exists, the claim form along with death certificate, passbook/certificate may be accepted by GDS BPM and after scrutinizing/verification of the documents, the GDS BPM will send the claim application form to concerned Account Office and the claim should be sanctioned by respective Account Office.
Note 4: The post office is required to give precedence to the nominee(s) over all other persons staking claims on the amount while settling deceased claims cases and such payment to the nominee absolves the post office from all future liability in respect of the deposit. However, if any legal heir preferred claim on the basis of a Succession Certificate, Probate of Will or Letter of Administration of the deceased estates issued by any court of law before sanctioning of claim in favour of nominee, claim shall be settled in favour of Succession Certificate/Probate of Will or Letter of Administration holder.
Note 5: In case nomination was made by the depositor and was in order but for any reason, Post Office did not register the nomination; the nomination can be registered later on after verification and approval by Divisional Superintendent.
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