VI What is the deposit insurance payment limit? What is the current deposit insurance payment limit? How is the deposit amount exceeding the deposit insurance payment limit handled? What is the deposit insurance payment procedure? Through today’s article, let’s learn about this issue with Pham Consult!
What is the deposit insurance payment limit? What is the current deposit insurance payment limit?
The insurance payment limit is stipulated in Article 24 of the Law on Deposit Insurance 2012 as follows:
Insurance payment limit
1. The insurance payment limit is the maximum amount that the deposit insurance organization pays for all insured deposits of a person at a deposit insurance participating organization when the insurance payment obligation arises.
2. The Prime Minister shall prescribe the insurance payment limit at the request of the State Bank of Vietnam in each period.
Thus, the insurance payment limit is the maximum amount that the deposit insurance organization pays for all insured deposits of a person at a deposit insurance participating organization when the insurance payment obligation arises.
Next, according to Article 3 of Decision 32/2021/QD-TTg, the insurance payment limit is stipulated as follows:
Insurance payment limit
The maximum amount that the deposit insurance organization shall pay for all insured deposits under the provisions of the Law on Deposit Insurance (including principal and interest) of a person at an organization participating in deposit insurance when the obligation to pay insurance arises is VND 125,000,000 (one hundred and twenty-five million dong).
Thus, the current deposit insurance payment limit including principal and interest is VND 125,000,000 (one hundred and twenty-five million dong).
How are deposits exceeding the deposit insurance payment limit handled?
Pursuant to Article 27 of the Law on Deposit Insurance 2012, the following provisions are provided:
Handling of deposits exceeding the insurance payment limit
The deposit amount of the insured person, including principal and interest exceeding the insurance payment limit, shall be resolved during the process of handling the assets of the deposit insurance participating organization in accordance with the provisions of law.
Accordingly, the deposit amount of the insured person, including principal and interest exceeding the insurance payment limit, shall be resolved during the process of handling the assets of the deposit insurance participating organization in accordance with the provisions of law.
What are the procedures for paying deposit insurance?
Pursuant to Article 26 of the Law on Deposit Insurance 2012, the procedures for paying deposit insurance are provided as follows:
(1) Within 10 working days from the time the obligation to pay insurance arises, the deposit insurance participating organization must submit a request for insurance payment to the deposit insurance organization.
The application for insurance payment includes a written request for insurance payment, a list of insured depositors, the deposit amount of each insured depositor and the insurance amount requested to be paid by the deposit insurance organization.
(2) Within 05 working days from the date of receipt of a complete application as prescribed in Clause 1, Article 26 of the Law on Deposit Insurance 2012, the deposit insurance organization shall examine the documents and books to determine the payment amount.
(3) Within 10 working days from the date of completion of the inspection as prescribed in Clause 2, Article 26 of the Law on Deposit Insurance 2012, the deposit insurance organization must have a plan to pay insurance money to insured depositors; publicly announce the location, time and method of paying the insurance money in three consecutive issues of a central newspaper, a local newspaper where the head office and branches of the deposit insurance participating organization are located and in a Vietnamese electronic newspaper; post the list of people receiving the insurance money at the announced location.
(4) When receiving the insurance money, the insured depositor must present documents proving the legal ownership of the insured deposits at the deposit insurance participating organization.
(5) The deposit insurance organization directly pays the insurance money to the insured depositor or authorizes another deposit insurance participating organization to do so.
(6) After a period of 10 years from the date the deposit insurance organization first notifies the deposit insurance organization of the payment of insurance money, the unclaimed insurance money will be established as state ownership and added to the operating capital of the deposit insurance organization. The person who owns the insured deposit will not have the right to request the deposit insurance organization to pay that insurance money.
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