Information about deposit and liability insurance for investors

¹ In the cases of non-repayment of deposits because of a credit institution’s default on its financial obligations, the SE Deposit and Investment Insurance shall pay deposit insurance benefits to depositors. The maximum amount of deposits held with one credit institution per depositor is EUR 100 000. For the purpose of determining the amount of a deposit insurance benefit all deposits held with the same credit institution shall be summed up. E.g., if a depositor has a savings account with EUR 90 000 and a current account with EUR 20 000, the insurance benefit paid to such a depositor shall be only EUR 100 000.

In certain cases the amount of the deposit cover shall be in excess of EUR 100 000:  when no earlier than 6 months before the day of the insured event of deposits, the depositor’s account is credited with the amount of money received for:

• sale of a residential house held by the depositor by right of ownership (up to 300 000 EUR);
• money inherited by the depositor in the capacity of heir or legatee (up to 200 000 EUR);
• money received in the event of death by the depositor as a beneficiary under a life insurance contract or any other contract of analogous nature (up to 200 000 EUR);
• money received by the depositor as a compensation in the cases established by laws as a result of another person’s death at work or while carrying out the official duties or payments of analogous nature (up to 200 000 EUR);
• benefits or compensations for damage inflicted by violent crimes (up to 200 000 EUR).

² If you have a joint account with other person(s), the EUR 100 000 cover limit shall apply to each co-owner of the deposit separately.

³ Disbursement of insurance benefits.

The SE Deposit and Investment Insurance (Algirdo g. 31, Vilnius, LT-03219, tel. 8 5 2135657, fax 8 5 2135546, e-mail: idf@idf.lt, website: www.iidraudimas.lt), which is in charge of the deposit insurance system, shall repay your deposits (up to EUR 100 000) no later than within:

– 15 working days between 1 January 2019 and 31 December 2020;

– 10 working days between 1 January 2021 and 31 December 2023;

– 7 working days from 1 January 2024.

Where until 31 December 2023, deposit insurance benefits are not disbursed within 7 working days of the insured event of deposits, as from 16 May 2016, at the depositor’s request, within 5 working days of the day of receipt of the request, the depositor shall receive the part of the insurance benefit for deposits equal to the minimum monthly wage, but not larger than the amount of eligible deposits held by the depositor (an advance deposit insurance benefit).

If the insurance benefit is not paid to you within the specified time limits, you should contact the SE Deposit and Investment Insurance. More information is available at www.iidraudimas.lt.

• Deposit insurance does not cover the following deposits

  • Deposits of other credit institutions held on own account and in own name;
  • Own funds;
  • Deposits which have resulted in conviction in a criminal case concerning money laundering;
  • Deposits of financial institutions;
  • Deposits of servicers;
  • Deposits of financial brokerage firms;
  • Deposits which have no identified owners (deposits held in anonymous and coded accounts);
  • Deposits of insurance companies and re-insurance companies operating pursuant to the Republic of Lithuania Law on Insurance;
  • Deposits of collective investment entities;
  • Deposits of state and municipal institutions and bodies as defined in the Republic of Lithuania Law on Public Service, except for funds owned by other persons kept in deposit accounts by the aforementioned institutions and authorities;
  • Deposits of the Bank of Lithuania;
  • Debt securities and liabilities issued by the participants of the deposit insurance system and related to their acceptances and promissory notes;
  • Electronic money and funds received by electronic money agencies from electronic money holders in exchange for electronic money.

• Deposit insurance benefits are not paid

  • For deposits, funds, money, securities and liabilities that are not the object of insurance;
  • To depositors when no operations related to the deposit have been carried out during the last 24 months before the day of the insured event of deposit and the amount of the deposit held is less than 10 euros.

  Pay-out of deposit insurance benefits is suspended when a depositor or any other person holding the claim right to the deposit insurance benefit has faced charges of money laundering – until the decision of the court becomes final.

Detailed information on the terms and conditions of deposit insurance and cases in which deposits are not covered with insurance and restrictions to payment of deposit insurance benefits apply is available on the website of the SE Deposit and Investment Insurance www.iidraudimas.lt.

In accordance with the Republic of Lithuania Law on Insurance of Deposits and Liabilities to Investors, liabilities  to investors are insured by the SE Deposit and Investment Insurance under the terms and conditions laid down in the Law:

• The insurance of liabilities to investors serves to insure the Bank’s liabilities to investors (natural and legal persons) to return financial instruments, regardless of the currency in which they are denominated and/or funds in all currencies.
• The amount of insurance coverage of liabilities to investors shall be equal to the liabilities undertaken by the Bank to the Investor on the date of the insured event however may not exceed EUR 22, 000. When calculating the insurance benefit, the liabilities to investor include only those securities and money of the investor that the Bank is incapable of returning to the Investor.
• When calculating the amount of insurance compensation for liabilities to investors, all financial instruments and money, which the Bank is incapable of returning to the investor, of one investor are aggregated (including subsidiaries, representations, other structural divisions of the investor’s legal entity or other organisation), however, the total amount of insurance benefit for liabilities to one investor shall not exceed EUR 22, 000.
• The Bank’s liabilities to the following entities shall not be the object of insurance of liabilities to investors: the Bank of Lithuania, credit institutions, financial brokerage firms, insurance and reinsurance companies that operate in accordance with the Republic of Lithuania Law on Insurance; pension funds, collective investment entities.
• Payments of insurance compensation for liabilities to investors shall not be made:
• for the Bank’s liabilities that are not covered with the insurance of liabilities to investors to the above listed entities;
• to investors holding financial instruments and/or funds regarding which a conviction was handed down resulting from a criminal proceeding on money laundering;
• heads of administration of the Bank, members of council and board (supervisory) board, persons holding at least 5 per cent of the share capital of the Bank, persons performing independent audit of the Bank (who performed an audit not more than one year before the insured event of liabilities to investors) and close relatives and third parties acting in the name of the afore-listed persons.
• Examples of circumstances and claims that shall not be subject to the insurance system:
• The object of the insurance of liabilities to investors is not the investment risk. If the issuer fails to redeem the debt securities or the value of the financial measure decreases, this shall not be the object of the insurance of liabilities to investors.
• The investor shall acquire the right to the insurance compensation for liabilities to investors from the date of the insured event of liabilities to investors. An insured event – opening of the insolvency proceedings or the decision of the supervisory authority to recognise the Bank insolvent, where the Bank is incapable of fulfilling its obligations to investors for the reasons related to its financial state – is the grounds to consider that it will be unable to do that in the nearest future.
• The investor acquires the right to the insurance compensation for liabilities to investors in the case where the Bank is incapable of fulfilling the following obligations to the investor under legal acts or contracts:
• To repay to the  investor money owned by the investor and held in its name which have been transferred to the Bank  to make use of the investment services provided by the Bank;
• To repay to the investor financial instruments owned by the investor and held in its name, handled or managed by the investor which have been transferred to the Bank to make use of the investment services provided by the Bank.
• The amount of insurance compensation for liabilities to investors shall be calculated at the market value of the financial instruments of the investor on the day of the insured event of liabilities to investors. The amount of insurance compensation for liabilities to investors held in foreign currency shall be calculated in accordance with the indicative exchange rates of the euro and foreign currencies last published by the European Central Bank on the day of the insured event of liabilities to investors, and in the cases when the European Central Bank does not publish the exchange rates of the euro and foreign currencies – in accordance with the indicative exchange rates of the euro and foreign currencies last published by the Bank of Lithuania.
• The compensation for liabilities to investors shall be paid out without requesting from the investor to lodge a request to the insurance company. The compensation for liabilities to investors shall be paid within 3 months from the day of the insured event of liabilities to investors. In exceptional circumstances the council of the insurance undertaking, in agreement with the Bank of Lithuania, may extend this time limit for no more than 3 months. The investors shall have the right to claim the reimbursement of compensations for liabilities to investors which shall be valid for 5 years from the date of the payment of compensation for liabilities to investors.

For more details visit the website of the SE Deposit and Investment Insurance.