8.1.2 Allocation of Deposit Insurance

As part of the Run execution, the application allocates the deposit insurance to accounts based on the guidelines specified by the SDIC Deposit Insurance. The insurance limit captured against each deposit insurance scheme is allocated to the insurance eligible accounts under that scheme based on the ownership category and the depositor combination.

The insurance limit, that is the maximum deposit balance covered by an insurance scheme per customer, is captured against each insurance scheme – ownership category combination. Customers having an account in multiple legal entities get a separate deposit insurance limit per legal entity. For the SDIC Deposit Insurance scheme, the limit amount should be provided in Stage Insurance Scheme Master table at the granularity of Insurance Scheme.

The insurance limit is allocated to accounts as follows:

1. The application identifies the established relationship flag at a customer level.
2. The accounts are sorted by the specified product type prioritizations.
3. The insurance allocation is done based on the principal balance from the highest to the least, in the order of product type prioritization.
4. The insurance limit available, is allocated to account 1 to n – 1 as per the formula given below:

Where, Insurance Limit Available : Limit available post allocation to previous accounts = Insurance Limit Available n-1 – Insured Amount x-1

x: Number of accounts up to the current account to which insured amount is to be allocated

n: Total number of accounts of a customer which are eligible for insurance coverage under a given ownership category

The remaining available insurance is allocated to the last account such an Account N, for which insurance was not allocated. If the insurance limit is available after allocating to the principal balances, it is allocated to the accrued interest from the highest to the least in the order of Product Type prioritization. This procedure is illustrated in the following table, considering an insurance limit of 50,000 Singapore Dollar (SGD) for each depositor combination under each ownership category for each legal entity follows:

Note:

• For Single, Joint and Sole proprietorship category, insurance limit is aggregated for each customer per legal entity.
• Each account holder in joint ownership category has equal share for insurance calculation until specifically provided by the legal entity.
• Trusts with distinct account number are treated separately. Trust accounts are insured on a per account –beneficiary basis without aggregation.
• Client accounts with distinct account number are treated separately. Client accounts are insured on a per account basis without aggregation.

The inputs to this calculation, including account details and customer details are provided in the following table:

Table 7-1 Account and customer details

Legal Entity	Account Number	Standard Product Type	Account Balance	Account Currency	Ownership Category	Primary Holder	Secondary Holder	Account Attribute	Unique Depositor Combination	Limit Applicable	Total Deposit per Unique Depositor	Insured Amount	Uninsured Amount
Legal Entity 1	100001	Saving Account	40,000	SGD	Single	Customer 001			1	50,000	110,665	50,000	60,665
Legal Entity 1	100002	Current Account	36,903	SGD	Single	Customer 001
Legal Entity 1	100003	Term Deposit	33,762	SGD	Single	Customer 001
Legal Entity 1	100004	Term Deposit	40,681	USD	Single	Customer 001				40,681		40,681
Legal Entity 1	100005	Saving Account	7,355	SGD	Single	Customer 002			2	50,000	29,852.50	29,852.50
Legal Entity 1	100006	Term Deposit	44,995	SGD	Joint	Customer 002	Joint Account with Customer 003
Legal Entity 1	100007	Term Deposit	44,995	SGD	Joint	Customer 003	Joint Account with Customer 002		3	50,000	22,497.50	22,497.50
Legal Entity 1	100008	Saving Account	7,568	SGD	Single	Customer 004			4	50,000	44,773	44,773.00
Legal Entity 1	100009	Saving Account	37,205	SGD	Sole proprietorship	Customer 004
Legal Entity 1	200100	Saving Account	29,451	SGD	Single	Customer 101			5	50,000	86,390	50,000	36,390
Legal Entity 1	200101	Current Account	79,640	SGD	Joint	Customer 101	Joint Account with Customer 102
Legal Entity 1	200102	Term Deposit	10,700	SGD	Joint	Customer 101	Joint Account with Customer 103
Legal Entity 1	200103	Term Deposit	11,769	SGD	Sole proprietorship	Customer 101
Legal Entity 1	200103	Term Deposit	79,640	SGD	Joint	Customer 102	Joint Account with Customer 101		6	50,000	39,820	39,820.00
Legal Entity 2	100010	Saving Account	7,337	SGD	Single	Customer 005			7	50,000	7,337	7,337.00
Legal Entity 3	100011	Term Deposit	45,016	SGD	Trust	Customer 005		For benefit of son	8	50,000	45,016	45,016.00
Legal Entity 4	100012	Term Deposit	6,574	SGD	Trust	Customer 005		For benefit of daughter	9	50,000	6,574	6,574.00
Legal Entity 5	100013	Saving Account	4,759	SGD	Trust	Customer 005		For benefit of spouse	10	50,000	4,759	4,759.00
Legal Entity 6	100014	Saving Account	20,517	SGD	Company	Customer 008		Office Account	11	50,000	20,517	20,517.00
Legal Entity 7	100015	Saving Account	24,254	SGD	Company	Customer 008		Client Account for Customer X	12	50,000	24,254	24,254.00
Legal Entity 8	100016	Saving Account	68,691	SGD	Company	Customer 008		Client Account for Customer Y	13	50,000	68,691	50,000.00	18,691.00
Legal Entity 9	100017	Saving Account	68,691	SGD	Single	Customer X			14	50,000	68,691	50,000.00	18,691.00
Legal Entity 1	100018	Deposit	50,101	SGD	CPFIS	Customer 501			15	50,000	50,101	50,000.00	101.00
Legal Entity 1	100019	Deposit	45,493	SGD	CPFRS	Customer 502			16	50,000	45,493	45,493.00
Legal Entity 1	100020	Deposit	14,252	SGD	CPFRS	Customer 503			17	50000	64,590	50000	14590
Legal Entity 1	100021	Deposit	50,338	SGD	CPFIS	Customer 503
Legal Entity 1	100022	Deposit	58,412	SGD	Single	Customer 504			18	50,000	58,412	50,000.00	8,412.00
Legal Entity 1	100023	Deposit	10,700	SGD	CPFRS	Customer 504			19	50000	52,469	50000	2469
Legal Entity 1	100024	Deposit	41,769	SGD	CPFIS	Customer 504