Table of Contents

Topics Page no.

Acknowledgement 2
Dedication 3

Introduction of indemnity 4
Types of indemnity 5
Allied Bank’s Locker 6
Introduction 6

Key Features 7
Special Features 7
Operation of lockers 8
Loss of key 9

Death of Licensee 10
Security of lockers 10
ZTBL’s lockers 11
Account opening form 11

RENT OF LOCKERS/ KEY DEPOSIT AND 11

RECOVERY PROCEDURE:-

Allotment of lockers 12
Locker register folio 13
Security of locker 13

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 Acknowledgment

First and foremost, we would like to we thank Allah Almighty for giving us the
strength knowledge, ability and opportunity to undertake this project. Without His
Blessings , this achievement would not have been possible.

We have great pleasure in acknowledging our respected teacher our guidance Prof.
Musharraf Nazir

Without his able guidance , this project would not have been possible and we shall
eternally be grateful to him for his assistance.

We would also like to express my gratitude to the University Of Central Punjab

who has been so helpful and cooperative in giving their support at all times to help me
achieve our goal.

Our acknowledgement would be incomplete without thanking the biggest source of

our strength our families The prayers of our parents which have all made tremendous
contribution in helping us reach this stage in our life. we thank them for putting up
with us in the difficult moments. This would not have been possible without their
unwavering and unselfish love and support given to us all times.

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 Dedication
First of all I thanks to Allah Almighty who created this world of knowledge for us.
And also The Holy Prophet without their Shifayet this project is impossible.

And I also dedicate this work to my respected teacher Prof. Musharraff Nazir
without their efforts and guidance this project would not be possible.

Then we would like to dedicate this work to our parents whose dream for us have
resulted in this achievement. We would not have been where we are today and what
we are today. And once again we also thanks to our parents without their prayers this
project was incomplete and also the account holder who gave us permission to use
their accounts.

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 Contract of indemnity
What is indemnity?
The word indemnity means security or protection against a financial liability. It
typically occurs in the form of a contractual agreement made between parties in which
one party agrees to pay for losses or damages suffered by the other party. In corporate
law, an indemnity agreement serves to hold Board Directors and company executives
free from personal liability if the company becomes sued or suffers damages.

A typical example is an insurance company wherein the insurer or indemnitor agrees

to compensate the insured or indemnitee for any damages or losses he/she may incur
during a period of time. Premium payments made by the insured are required to bind
the agreement, so the insurer can return or compensate the damages or losses
obtained.

Indemnification may be compensated in the form of cash, by way of repairs or

replacement, or by other means which the parties have agreed upon.

Indemnity Agreements for Board Directors

In order to attract high-quality professionals to serve as members of a Board of

Directors, it is commonplace to have an indemnification agreement. The
indemnification agreement protects the Board Directors against liabilities, losses, and
lawsuits that may result from serving on the board of the company.

Essentially, the way it works is that the company agrees to indemnify the directors
and hold them harmless from liabilities that may result from the business being sued
or held responsible for a major loss.

It is common for company bylaws to contain provisions such as indemnification, but

many Directors may wish to go one step further and have a specific agreement that
cannot be changed or removed for any reason. The Agreement is a bilateral contract
directly between the Director and the Corporation.

Learn about the Directors’ indemnification provisions in the Companies Act of

2006 here.

Example of Indemnity in Business

The owner of a commercial property has been paying an insurance premium to an

insurance company so that she can recover the costs for any loss or damage if a future
bad event were to happen to the establishment. If the building sustains significant
structural damages from fire, then the insurance company will indemnify the owner
for the costs to repair by way of reimbursing the owner or by reconstructing the
damaged areas using its own authorized contractors.

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What are the Types of Indemnity?

#1 Express indemnity

This is a written agreement to indemnify, where the terms and conditions by which
the concerned parties must abide are usually indicated. These include insurance
indemnity contracts, construction contracts, agency contracts, etc.

#2 Implied indemnity
This is an obligation to indemnify that arises, not from a written agreement, but more
from circumstances or the conduct of parties involved. One practical example is an
agent-principal business relationship. When the principal refuses to accept the goods
that the agent supplies him, the agent can sell them to others; however, if the agent
sustains a loss while selling, the principal is obligated to pay for it.

What is the Importance of Indemnity in Business?

Indemnity is prevalent in most agreements that involve an individual and a business;
however, it also applies to businesses and governments, or between governments of
different countries. This provides financial protection to cover costs in the event of
negligence, mistakes, accidents, or some unavoidable circumstances that could highly
impact the flow of the business.

Indemnity insurance is one way to be protected against claims or lawsuits. This

insurance protects the holder from paying the full amount of a settlement, even if it is
his fault. Many businesses require indemnity for their directors and executives
because lawsuits are common. It covers court costs, lawyer’s fees, and settlements.

Typical examples of indemnity insurance are:

1. Malpractice insurance
2. Errors and Omissions (E&O) insurance
3. Directors or Officers (D&O) insurance

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 Abstract:
This project is developed for the users to use a high security locker. It mainly consists
of a lock and key, microcontroller unit and telephone circuit. The lock is connected
with the locker. A key pad is connected with the microcontroller unit. The signal from
the key pad is sent to the microcontroller unit. The microcontroller unit controls a
telephone circuit.

To open the locker, the user has to give proper security code using the key pad. The
microcontroller analyses the code and alerts the user with a green signal to open the
door. If he is not an authorized user, the microcontroller sends signal to the
controlling unit and there by operating the telephone circuit. The controlling unit
makes a call to the particular user.

This project gives high security to the user so that un authorized person cannot open
the locker.

Introduction:

Lockers are available at Allied Bank’s branches for all our account holders with
singly as well as joint operating instructions. As an additional security and track
recording, whenever our account holders visit their locker, they are supervised by our
cordial staff along with the verification of signatures to ensure safe, verified and
vigilant entry.

If you are an Allied Bank Account holder, contact your branch and avail the locker
facility now.

Some key features and charges of Allied Bank’s safe deposit lockers are:

Key Features:
 Wide Availability
 Lockers are insured according to their size.
 Privacy and comfort to operate lockers
 Lockers available in various sizes. I.e. Small, Medium, Large and Extra Large with
flexible rental fee.
 Lockers are rented out for a minimum period of one year.
 The rent will be recovered from your deposit account maintained with us.
 Direct debits for locker rentals from your account provide convenience and hassle-
free payment of annual fee.
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 Charges (Per Annum)
1 2 3 4
Locker Size Small Medium Large Extra Large
Annual Locker Rent Rs. 3,750/- Rs. 4,500/- Rs. 6,000/- Rs. 12,000/-
OR
Security Deposit Rs. 40,000/- Rs. 70,000/- Rs. 100,000/- Rs. 125,000/-

 NOTE: Security Deposit is Refundable at the Time of Vacation of Locker.

Safe Deposit Lockers:

Safe Deposit Locker is a special facility provided to our customers for keeping their
valuables or important documents safely. The customers can access the locker any
time during the Bank's business hours. Each locker has a separate number and is fitted
with a double key lock, which ensures the safety of your lockers.

Allied Digital Lockers have been equipped with multi-layered verification process for
customer security. Digital Lockers allow customers to access their lockers without
assistance of bank staff with complete privacy and convenience.

 Automated Lockers’ features:

 Hassle free and convenient operation
 Advanced Verification Tools(AVT)
 Privacy and security
 24/7, 365 days access

How can you avail?

 Just open an account in designated ABL branch where Digital Locker facility is
available and request a Debit Card.
 Fill in a simple application form, get registered and you are good to go*.

Special Features:
Exclusive features available to you with Safe Deposit Lockers:

 Maximum protection and security:

Strong, heat-resistant steel lockers are lodged in reinforced concrete steel vaults in a
locker complex protected against weather conditions, power failures, wired with
highly sophisticated anti-burglary alarm systems, smoke-sensor's, backed by
firefighting equipment and 24 hour manned security.
 Absolute privacy and comfort:
you will be provided complete privacy to operate your locker in a comfortable,

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centrally air-conditioned hall. Should you require any help, your locker custodian is
standing by to offer friendly, personalized assistance.

Key Features of Application Form:

 Absolute privacy to operate your locker in a comfortable environment.
 A Locker custodian to offer friendly and personalized assistance.
 Maximum of four (4) deposit operators per Locker.
 Safety of your valuables from loss, fire and theft.
 Unlimited free visits to your Locker.
 Availability of different Locker sizes (Small, Medium and Large) to suit and
accommodate your needs.
 Takaful coverage of up to Rs. 500,000/- for Small lockers, Rs. 1,000,000/- for
Medium lockers and Rs.15,00,000/- for Large lockers.
 Locker Rent payable annually and in advance (as per schedule of charges).
 Key Deposit payable in advance as a condition for Locker facility.
 Operating by single ,jointly , either/survivor

How to operate

a) Locker will be operated under a dual control system i.e. One key is
delivered to the licensee (s) and the other key called the Master Key
remains with the Manager of the Branch.
(the duplicate Master Key will be lodged along with other Duplicate Keys
of the Branch with the Banker of said branch in duly sealed envelop).
b) Whenever a locker will be operated, the date and time shall be noted in
Locker Operation Register.
c) Lockers can operated either singly, jointly, either or survivor’.
d) In such cases, where the locker is to be operated jointly, ‘either or
Survivor’ any singly, the signatures of all such persons are to be invariably
obtained in the specified space in AOF and S.S. Card. The same
information will also be mentioned in the ‘Operational Instructions’ space
provided in the AOF and S.S Cards.
e) Whenever any client approaches to operate the locker, his/ her signature
should be obtained on ‘Locker Register’.
f) Locker Register with following details and description shall be maintained
at each Branch for handling/ operation of locker facility.

Handling of Master Key:

a) For operation of lockers, one key will be provided to the licensee and other
key, called the Master Key remains with the locker-in-charge during
Office Hours.
b) Lockers will be kept in Strong Room/ Locker Room and will be operated
by Manager or Assistant Manager/ Deputy Manager who is also holder of

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 Cash Safe Key. The Master Key of Lockers should be kept in cash safe
overnight in a separate pouch under all circumstances.

The name of custodian and date will be entered in Key Charge Re

Loss of Locker Key:

In case locker key is lost, the licensee shall inform the Bank in writing on the Bank’s
specific letter (annexure-D).

a) He will request for break opening of the locker on any working day
convenient to the Bank. The request shall be made on the printed
Performa.
b) The Bank shall also obtain Guarantee Form (Anneure-E) dully filled in by
the guarantor, who should be customer of the Bank.
c) The Guarantor shall sign in the specific space and shall also attest the
signature of the lessee in the appropriate space. The bank shall verify the
signature from the S.S. Card.
d) Break opening charges @ Rs: 1000/- shall be charged on receipt of
request.

Surrender of Locker:
a) Surrender Form dully signed by the licensee will be obtained and signature
of the licensee will also be verified. The reason for dittander will be
maintained on the form (Annexure-C)
b) S.S. Card of the licensee will be removed from S.S.Card box, cancelled
and will be attached with respective A.O.F along with the surrender Form.
c) Key deposit will be refunded only after obtaining the original key of the
locker and deducting any rent/ charges outstanding.

DEATH OF LICENSEE:
i) On receipt of formal information/ intimation of the seat of a locker
holder, a notation of caution “NO OPERATION-LICENSEE
DECEASED SINCE……” shall be recorded in the LOCKER
ACCOUNT REGISTER & S.S. CARD. A notice with the same
narration shall also be displayed/ pasted outside the concerned locker.
ii) The succession certificate submitted by the heirs shall specifically
mention/ list the locker among the assets of the deceased.
iii) Notary public or an Advocate on the approved panel of the Bank or
any Attorney/ Local Commissioner appointed by the Court.
iv) An executive/ senior officer of the Bank.
v) Branch Manager
vi) Custodian of Locker.

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SECURITY OF LOCKERS:
A) ASSISTANT Manager Operations shall ensure that safe deposit locker rooms
of their respective branches are adequately and reasonably secured from all
sides, and the security arrangements in place are fool proof and meet the
security standards developed by the banks.
B) Senior Official posted in the branch will carry out surprise check which must
be frequent during the working hours.
C) All the Branch Managers would be supposed to tender a certificate within 30
days of taking on the lockers business to the effect that the safe deposit locker
rooms meet the criteria as laid down at above.
D) The Bank shall properly convey the terms and conditions (including size, rent,
insurance ceiling etc.) to the existing locker holders/ new locker holders.
E) Safe deposit vault/ Locker Room shall be under dual control preferably with
key & combination.
F) A separate small room with table/ chair, intercom and emergency alarm
system in the Locker room may be arranged.
G) A CCTV camera, smoke detector and sprinklers shall also be installed in the
Locker Room.
H) Roofing and wall dept shall be certified by the Civil Engineer.
I) Only one customer shall be allowed to be in the locker room at a time.

Date…………. Signature…………

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 ZT bank Limited

LOCKER FACILITY IN ZTBL

In its Pursuit to bring meaningful change by undertaking strategic initiative to
enhance operational efficiency & effectiveness through niche marketing and provision
of product mix, the management of ZTBL, is exhilarated to deliberate for provision of
safe deposit locker facility in ZTBL. The salient features of product and its
operational procedures are appended hereunder:-

ACCOUNT OPENING FORM (AOF):-

i) The locker facility is to be provided to individual or group of individuals
already maintaining an account with ZTBL in the same legal status/ entity.
ii) The rental of locker to a customer, a member of Public/ Staff depends on
availability and size at particular location. If a locker is available, the
customer is issued a ‘Locker Allotment Form’ Annexure-A accompanied
by a ‘Specimen Signature Card’ Annexure-B. The conditions governing
the rental of the locker are printed on the reverse side of the Account
Opening Form.

RENT OF LOCKERS/ KEY DEPOSIT AND RECOVERY PROCEDURE:-

i) Following are the approved rates for rent of lockers and key deposits:-

Type Specification Rent per Annum Key Deposit

Small 6-1/2” X 4-1/2” X 23” Rs: 1000/- Rs: 5000/-
Medium 13-1/2” X 4-1/2” X 23” Rs: 1500/- Rs: 10000/-
Large 13-1/2” X 8-1/2” X 23” Rs: 2500/- Rs: 15000/-

a) Lump-sum Advance payment of Locker rent for Ten years shall entitle the
license to avail this facility for life time.
ii) Recovery Procedure of Locker Rent
b) Annual rent will be recovered in advance, preferably by making arrangements
to debit the customer’s account.
c) The annual rental fee will be billed to the customer approximately one month
prior to the actual due date. Billing may be handled on a day-to-day basis or
collectively at the beginning of each billing cycle. The same form may be used
for subsequent follow-up by including “Second Notice”, “Third Notice” etc.,
at the time of preparation. Notices, after the first two, may be forwarded to the
customer as deemed necessary by the Manager in term of Legal Jurisprudence.

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 d) Appropriate notations will be recorded in the pertinent safe deposit record for
signature card, whichever is more convenient, when rental is not received by
the due date.
e) The Branch will be guided by the local counsel as to the proper procedure to
be followed should it becomes necessary to repossess a safe because of unpaid
rentals. After one year from due date of rental expiration, the customer will be
advised by certified or registered mail that the lock will be cut open and the
contents removed. If no reply is received after a reasonable period of time, the
lock will be cut open in the presence of an employee and an officer with prior
approval of Zonal Chief. Both will sign an inventory record of the contents, a
copy of which will be filed with the lease. The contents and another copy of
the inventory will be retained in Securities Held in Safekeeping unless other
disposition is provided by Law.
f) Normally, a refund will be made upon the surrender of a box. However, the
Zonal Chief may grant 50% refund in unusual circumstances, but only where
the box is surrendered during the first six months of the lease period.

RECEIPT OF CHARGES:

When the AOF and SS Card are completed, rent in advance for one year and key
deposit shall be received as per latest schedule of Bank Charges and the following
entry will be passed:

Dr. Customer’s A/c./ Cash

Cr. Income A/C. Rent of Lockers

Cr. SUNDRY Deposit- Key Deposit

a) For booking of Bank’s charges, the G.L. Heads shall be as under:-

S.No. Nomenclature G.L.Heads Control Head

1. Rental income of lockers 7115 7100
2. Un-earned rental income of locker 3053 3050
3. Key Deposit for lockers 3075 3050

ALLOTMENT OF LOCKERS:

After obtaining the Key Deposit and Annual rent, a locker will be allotted to the
licensee and the key of the allotted locker will be handed over to him after proper
acknowledgement.

a) Before handing over the key to licensee, it is to be ensured in his/her presence

that locker was vacant.
b) Receipt of rent and key Deposit of locker will be issued to the licensee duly
signed by the Assistant Manager Operations.

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OPERATION OF LOCKERS:-

g) Locker will be operated under a dual control system i.e. One key is
delivered to the licensee (s) and the other key called the Master Key
remains with the Manager of the Branch.
(the duplicate Master Key will be lodged along with other Duplicate Keys
of the Branch with the Banker of said branch in duly sealed envelop).
h) Whenever a locker will be operated, the date and time shall be noted in
Locker Operation Register.
i) Lockers can operated either singly, jointly, either or survivor’.
j) In such cases, where the locker is to be operated jointly, ‘Either or
Survivor’ any singly, the signatures of all such persons are to be invariably
obtained in the specified space in AOF and S.S. Card. The same
information will also be mentioned in the ‘Operational Instructions’ space
provided in the AOF and S.S Cards.
k) Whenever any client approaches to operate the locker, his/ her signature
should be obtained on ‘Locker Register’.
l) Locker Register with following details and description shall be maintained
at each Branch for handling/ operation of locker facility.

LOCKER REGISTER FOLIO

7- HANDLING OF MASTER KEY:

c) For operation of lockers, one key will be provided to the licensee and other
key, called the Master Key remains with the locker-in-charge during
Office Hours.
d) Lockers will be kept in Strong Room/ Locker Room and will be operated
by Manager or Assistant Manager/ Deputy Manager who is also holder of
Cash Safe Key. The Master Key of Lockers should be kept in cash safe
overnight in a separate pouch under all circumstances.
e) The name of custodian and date will be entered in Key Charge Register.

8- LOSS OF LOCKER KEY:

In case locker key is lost, the licensee shall inform the Bank in writing on the Bank’s
specific letter (annexure-D).

e) He will request for break opening of the locker on any working day
convenient to the Bank. The request shall be made on the printed
performa.
f) The Bank shall also obtain Guarantee Form (Annexure-E) dully filled in
by the guarantor, who should be customer of the Bank.
g) The Guarantor shall sign in the specific space and shall also attested the
signature of the lessee in the appropriate space. The bank shall verify the
signature from the S.S. Card.

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 h) Break opening charges @ Rs: 1000/- shall be charged on receipt of
request.

SURRENDER OF LOCKER:-

d) Surrender Form dully signed by the licensee will be obtained and signature
of the licensee will also be verified. The reason for surrender will be
maintained on the form (Annexure-C)
e) S.S. Card of the licensee will be removed from S.S.Card box, cancelled
and will be attached with respective A.O.F along with the surrender Form.
f) Key deposit will be refunded only after obtaining the original key of the
locker and deducting any rent/ charges outstanding.

DEATH OF LICENSEE:

vii) On receipt of formal information/ intimation of the death of a locker

holder, a notation of caution “NO OPERATION-LICENSEE
DECEASED SINCE……” shall be recorded in the LOCKER
ACCOUNT REGISTER & S.S. CARD. A notice with the same
narration shall also be displayed/ pasted outside the concerned locker.
viii) The succession certificate submitted by the heirs shall specifically
mention/ list the locker among the assets of the deceased.
ix) Notary public or an Advocate on the approved panel of the Bank or
any Attorney/ Local Commissioner appointed by the Court .
x) An executive/ senior officer of the Bank.
xi) Branch Manager
xii) Custodian of Locker.

SECURITY OF LOCKERS:-

J) Assistant Manager Operations shall ensure that safe deposit locker rooms of
their respective branches are adequately and reasonably secured from all sides,
and the security arrangements in place are fool proof and meet the security
standards developed by the banks.
K) Senior Official posted in the branch will carry out surprise check which must
be frequent during the working hours.
L) All the Branch Managers would be supposed to tender a certificate within 30
days of taking on the lockers business to the effect that the safe deposit locker
rooms meet the criteria as laid down at above.
M) The Bank shall properly convey the terms and conditions (including size, rent,
insurance ceiling etc.) to the existing locker holders/ new locker holders.
N) Safe deposit vault/ Locker Room shall be under dual control preferably with
key & combination.
O) A separate small room with table/ chair, intercom and emergency alarm
system in the Locker room may be arranged.

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 P) A CCTV camera, smoke detector and sprinklers shall also be installed in the
Locker Room.
Q) Roofing and wall dept shall be certified by the Civil Engineer.
R) Only one customer shall be allowed to be in the locker room at a time.

INSURANCE POLICY:-

The Bank shall arrange Insurance Policy/ Polices for Licensee for the period of one
year. The Licensee will be entitled for insurance cover under the following
conditions:

a) The insurance cover will only be available in the event of theft, robbery,
dacoity, fire and unauthorized breaking and entering into the locker in
addition to fidelity clause of insurance.
b) The claim will only be acceptable as per terms and conditions provided in
the insurance policy obtained by the Bank.
c) The licensee has the right to obtain additional insurance cover from any
insurance company for the licensed locker subject to prior intimating to the
Bank.
d) The Insurance claim shall only be entertained in respect of those lockers
whose rent stands paid/ cleared by the licensee.

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