Shree Shakti Foam had applied to Canara Bank for a cash credit facility against the hypothecation of stocks. The bank ascertained the stock summary and physically tallied it with the goods in the godown before sanctioning the facility. The bank also arranged for insuring the godown and stock. An amount of Rs 13,771 was recovered from the customer’s account towards the premium for the policy.

On the night of October 20, 2017, a fire occurred, due to which goods were burnt. The police as well as the bank were intimated. It was then realised that there was

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Consumer protection: Bank not liable for lack of pledged goods cover

The National Commission noted that merely because the bank had obtained the previous policy did not absolve the customer of its primary responsibility to obtain coverage

Listen to This Article