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.