Ineligible Claims

1. On the basis of the results of the reconciliation and/or verification, an Insurance claim is deemed ineligible for payment if:
a. The deposit(s) are not recorded in the bank;
b. Depositor(s) is deemed to have benefited through means that run counter to prudent banking practices; and/or
c. Depositor(s) is deemed responsible for the failing conditions of the bank.
2. Deposits are deemed to be registered with a bank if:
a. The data on deposits are registered, such as account number/instrument number, depositor's name, deposit balance, and any other relevant information for such accounts and/or;
b. Evidence in terms of cash flow indicating the existence of the deposit.
3. Depositors that are deemed as those that benefit from practices that run counter to prudent banking practices if they obtain an interest rate higher than the maximum interest rate determined by IDIC.
4. IDIC announces the maximum insured interest rate each month with the following conditions:
a. The rate is only valid for a 1 (one) month period; and
b. The announcement is made no later than 2 (two) working days before it becomes effective.
5. A party is deemed to be a party that is responsible for the failing conditions of the bank as stipulated on Article 36 letter C, in the event that the said party has an obligation to the bank which can be classified as a "Non-performing loan" in accordance with prevailing regulations and the obligation of the party to the bank is larger than its deposit balance.
6. If depositors whose deposits are deemed ineligible for payment feel that they are disadvantaged, therefore, the depositors can:
a. Submit their objections, supported by clear evidence, to IDIC; or
b. Seek to undertake appropriate legal action.
7. If IDIC accepts the depositor's objection or if a court of competent jurisdiction so declares, IDIC shall therefore reclassify the ineligible deposits to become eligible deposits.
8. IDIC shall only pay the insured deposit in accordance with the insurance along with the insured interest rate since the deposit is determined to be ineligible for payment up to the point of time in which the deposit is paid by IDIC.
9. Insured interest rate is calculated by using the maximum insured interest rate.