What is the Current Insured Limit and why is it limited to a Fixed Sum?
The insured limit is currently a maximum of ₦500,000 for
each depositor in respect of deposits held in each insured Deposit Money Bank
(including Non-Interest Banks) and Primary Mortgage Bank and ₦200,000 for
depositor in MFB in the same right and capacity.
The amount to be
reimbursed has to be defined. Limited coverage is to minimize moral
hazard through excessive risk-taking by bank management and depositors.
Unlimited coverage could constitute a perverse incentive for excessive
risk-taking.
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How are the Insured Sums Collected?
Insured sums are collected by depositors on filing their claims through the completion of relevant forms provided by the NDIC. In addition, they have to furnish the NDIC with account documents such as unused cheque books, old cheque stubs, passbooks, ...
If a Depositor has Deposit Accounts in Different Insured Banks, will the Deposits be added together for the Purpose of Determining Insurance Coverage?
No. The maximum insurance limit is applicable to deposits in each of the participating banks. In the case of a bank having one or more branches, the main office and all branch offices are considered as one bank. In summary, if a person has many ...
Is an Account Held by either a Company or Partnership, Insured Separately from the Individual Accounts of Shareholders or Partners?
Yes. If the Company or Partnership is engaged in an independent activity, its account is separately insured up to the maximum insured sum. The term Independent activity means any activity other than one directed solely at increasing insurance ...
If a Husband and Wife or any two or more Persons, have, in addition to their Individual Accounts, a Joint Account in the same Insured Bank, is each Account Separately Insured?
Yes. If each of the co-owners has personally signed a valid mandate card and has a right of withdrawal on the same basis as the other co-owners, the joint account and each of the individually-owned accounts are separately insured up to the insured ...
When an Account is Held by a Person Designated as Agent for the True Owner of the Funds, How is the Account Insured?
The account is insured as an account of the principal or true owner. The funds in the account are added to any other accounts owned by the owner and the total is insured up to the maximum sum.