4.3.5.1 Identifying 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:

• Maximum Eligibility

  OFS LRRCHKMA allocates the insurance limit of maximum Hong Kong Dollar (HKD) 500,000 to each depositor separately per scheme member.

• 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 customer accounts whose product types match those covered by the deposit insurance. For HKMA, Deposit Protection Scheme (DPS) covers the following:

  • 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 the customer level to customer-account level, priority is given on the following basis:

  Table 3-4 Product Type Prioritization Criteria

  Basis	Description
  Currency	If a retail customer has placed deposits denominated in more than one currency and these deposits are covered by an Effective Deposit Insurance Scheme, then the insurance is covered in the deposits in following order of currencies: 1. Deposits in HKD 2. Deposits in USD 3. Deposits in other major currencies 4. Deposits in RMB 5. Deposits in other currencies
  Standard Product Type	Current Account and Savings Accounts are assigned a priority 1. Time Deposits are assigned priority 2.
  Balance	If the Product types of two or more accounts are the same, the priority is given to account with highest EOP Balance.
  Account Number	In the rare case that the product type and balances between accounts are the same, allocate priority to the lowest Account Number.