Insured deposit

An insured deposit:

It is such a part of deposit that will be compensated by the Fund in the amount defined by Law "on deposit insurance" in case of insurance incident in the participant bank where a depositor is serviced.

Insurance event:

Insurance event is a fact of a member bank’s forced liquidation or bankruptcy or effect of a court judgment prohibiting performance of deposit liabilities under the law and the bank’s failure to perform its statutory or contractual obligations to depositors approved by the  Financial Market Supervisory Authority.

Compensation paid to a depositor:

Starting March 2, 2016 deposits accepted by the Fund’s member banks with the annual interest rate 3 % in the foreign currency and 15 % in the national currency will be fully insured for 3 ( three) years.

Interests on deposits shall be paid in the amount accrued by the date of the insurance event, provided that the compensation does not exceed the amount that mentioned above.

In which currencies shall compensation be paid in case of an insurance incident?

In case of an insurance incident the compensation shall be paid:

- in manats for the deposits in national currency;

- compensation shall be paid as one deposit account in manats for deposits both in national  and foreign currencies

- in USD or EUR according to the currency of the deposit for the deposits in USD and EUR deposits;

-For deposits denominated in other foreign currencies compensation shall be paid in USD or EUR based on the official exchange rates defined by the National Bank.

In case of an insurance incident in the participant bank the Financial Market Supervisory Authority sends a notification to the Fund. On receipt of the notification the Fund shall within 7 (seven) calendar days publish an announcement in a media on the time and venue of compensation payments.

The Fund shall make that announcement and publish the notification two more times at a week's interval.

Rules for compensation paid:

Depositors shall apply to the Fund for compensation in writing. The name of the bank that deposits have been located, amount of the deposit, currency of the deposit (in manat or other currency), information about a depositor (first name, last name, place of birth, date of birth, address, contact number and e-mail), general volume of the deposit and form of getting compensation (via cash or transfer and so on.) shall be indicated in the application.

The following documents and their copies shall be attached to the application:

- Deposit contract (bank amount);

- The deposit book or other statutory documents certifying the deposit;

- documentation confirming the depositor's ID

- If a depositor's assignee applies for compensation, he must also furnish the Fund with a notarized power of attorney.

The Fund shall accept depositor applications during one year from the date the payment of compensations was first announced. When documents are made available that ascertain the existence of conditions that rendered the depositor incapable of filing an application, the period of apply in order to get a compensation may be extended provided that 5 years from the day of publish of notification is not passed. The Fund shall pay compensation no later than in 90 calendar days from the date the depositor's application was received. In exceptional cases, the Fund may prolong the period of payment of compensation for up to 90 calendar days, if so decided by the Board of Custodians.