Case Law Analysis
Banks Liable for Loss of Collateral Documents & Lapsed LIC Policies Under Consumer Protection Act | West Bengal SCDRC
The West Bengal State Consumer Commission has ruled that banks owe a fiduciary duty to safeguard original property documents and collateral insurance policies, and their negligence leading to loss or lapse constitutes deficiency in service. This sets a critical precedent for borrowers nationwide, entitling them to compensation for mental agony and financial harm when banks fail in their custodial obligations.