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Deposit insurance: definition, history, function and purpose.

A Deposit in a Bank – most popular means of saving money. Deposit insurance allows you to make it even safer. Despite the fact that it is an important tool to improve the reliability of the contribution, details about it are known to few. However, the insured event can happen to anyone, but because all the information about the tool to reduce a loss it is better to know in advance. 

 The Deposit insurance system

The concept of insurance and its functions

Provided by the specialized insurance Agency on insurance of contributions. For the first time the need for insurance of this kind appeared in 90-ies in connection with numerous Bank failures. The insurance law was adopted in 2004.

 The size of the Fund of the Agency for Deposit insurance

Agency perform two functions:

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Agencies of this kind operate in more than one hundred countries. Their mission:

In the period from 2004 to 2013 it was stated 130 insurance claims. 

How is the insurance?

The entire process of insurance is divided into two steps:

Interaction with the Agency, submission of insurance – these are the responsibility of the banking institution. Each quarter, it shall pay the Agency fee in the amount of 0,1% of the amount of all deposits.

Insured, by law, is:

The insured event may occur due to:

Features of the insurance indemnity

 Insurance indemnity

The insurance compensation has the following features:

Payment must be made no later than 2 weeks from the date of occurrence of the insured event. The depositor may:

Exceptions

Insurance payments are not provided for the following accounts: