9.1.1 Identification of Insurance Eligible Accounts

The identification of insurance eligible accounts involves looking at the inclusion as well as the exclusion criteria. The application requires users to provide the following inclusion criteria:

• Ownership Category

  OFS LRRCHKMA allocates the insurance limit separately for each ownership category level. Ownership categories include single accounts, joint accounts, trusts and Business accounts. As per the HKMA insurance agency, a separate limit is assigned to a depositor combination based on the ownership category of accounts. Users must provide the ownership categories that get a separate limit. The coverage per Legal Entity- Customer-Ownership category combination is HK$ 500,000.

• Product Type

  This is a list of product types that are covered under the respective jurisdiction’s deposit insurance scheme. The insurance limit is allocated to only those accounts of a customer whose product types match those that are covered by the deposit insurance. For HKMA, DPS covers the following products:

  • Current and Savings Accounts
  • Term Deposits with contract maturity less than 5 years

  The following products are not covered by Deposit Insurance:

  • Structured Deposits
  • Certificate of Deposit
  • Term Deposits with contract maturity exceeding 5 years
• Product Type Prioritization

  While allocating insured amounts from customer level to customer-account level, priority is given as shown in the following table:

  Table 8-1 Customer accounts and priorities

  Basis	Description
  1. Standard Product Type	Current Account and Savings accounts =Priority 1; Time deposits= Priority 2
  2. Balance	In case the Product types of two or more accounts are the same, the priority is given to account with highest EOP balance
  3. Account number	In the rare case that the product type and balances between accounts are the same, allocate priority to the lowest account number