HSBC did not need to insure the contents of its safe deposit boxes, despite the accidental dumping of dozens of boxes and their contents by another bank last week, chairman David Eldon said yesterday.
Responding to DBS Bank's disposal of 83 boxes as scrap metal, Mr Eldon said insurance would involve too many problems, including whether banks could scrutinise the contents and how to assess their value.
There were no international rules to help tackle these problems, he said.
Mr Eldon's view contrasted with that of Liu Chong Hing Bank senior manager Brian Cheung Nam-chung. Mr Cheung said on Sunday that he thought all local banks should agree with the Hong Kong Monetary Authority and Hong Kong Association of Banks on fixing an upper limit of insurance compensation to protect depositors. He said banks could contact insurance companies to decide on the premium.
A DBS Bank spokeswoman yesterday refused to disclose how many people who lost their boxes had accepted its offer of a fast-track compensation settlement of $150,000. But it is understood that at least 17 had done so.
'We do not want to bring pressure on other box owners who do not go for the fast-track settlement,' she said. 'When we publicise the number of people who go for the settlement, others will think they might as well do the same thing.'