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Home FAQ Questions normally asked during a payout?
Questions normally asked during a payout? Print

The following are some of the typical questions, which may be asked, and problems that occur during a payoff with guidelines on how they may be handled.

  1. Is it necessary that a claimantpresents himself in person, in order to receive his money?

    No. However, payment of deposit insurance claims may be made to a person other than the claimant where the claimant so authorizes by declaration witnessed by a notary public, by whatever name called.

  2. A depositor asked whether interest on his account has been paid?

    Interest is usually credited to the depositors claim up to the date of suspension and/or closing of the institution. (If the claim is for less than $25,000 this interest is included in the claim payment). The calculation of interest will depend on the type of contract the depositor has with the bank. Where the deposit has a fixed maturity date, and has not been renewed, insurance will be calculated to the earlier date of maturity, or date of suspension of the institution.

  3. A depositor asked, Who closed the institution?

    The institution will have been wound up by an Order of the Court upon application being made by the Director of Bank Supervision and the Central Bank of Barbados. The BDIC does not have the authority to close a financial institution. It pays insured deposits to those eligible depositors of the closed insured institutions, and acts or appoints the Receiver/Liquidator of the closed institution.

  4. What happens when the BDIC pays a depositor his insured deposit?
    The depositor makes a claim to the BDIC and signs for receiving the insured deposit. He therefore automatically assigns (subrogates) his rights as a claimant to the BDIC who replaces him as a claimant against the Estate of the closed institution. According to section 40 of the Deposit Insurance Act 2006-29, the BDIC then ranks ahead of other uninsured creditors in respect of payments of insured deposits in the liquidation dividends paid by the Receiver/Liquidator as the assets are liquidated.

  5. What if a depositor loses his passbook or another negotiable document (a certificate of deposit, official cheque, etc.)?

    The depositor will be required to file an affidavit to that effect, which will then be corroborated by the policyholders records.

  6. What is required of the claimant if the account holder is deceased?

    A copy of the letters of administration or grant of probate is required. If the deposit is a joint account and one of the parties to the account is deceased, consult with the BDICs Legal Officer.

  7. A depositor queried theDIC's records whichshows that he has more in his chequing account than he thought he had. How is this possible?

    This is probable because it is likely that he has written cheques which did not reach the institution. The cheques are in the process of being returned to the last endorsers marked drawee bank closed. They will eventually go back to the persons or firms he gave them to and he must replace them or pay for them in cash. No cheques can be honoured on depositors accounts in an institution after it is suspended or closed and they must be returned. The depositor has not suffered a loss due to this because they were not deducted from his account.

  8. Who can claim the funds on negotiable instruments such as cashiers cheques, certified cheques, money order, etc.?

    The legitimate holder of such an item who acquired it for value prior to the closing of the institution (holder in due course) can claim the deposit insurance due on the instrument. The holder is required to surrender the instrument. The official must cross check the item with the Register of Deposit Liabilities to determine if the owner of the item has a deposit that when combined with the negotiable instrument exceeds $25,000.

Deposit Transfer

In most cases, and wherever practicable, payoffs will be made by way of the transfer of deposits to commercial banks. Under this procedure the commercial banks pay designated deposits on the BDICs behalf. Payment will have been considered to have been made where the depositor opens a new account with the commercial bank or receives cash or a cheque.

Final Notice to Depositors

Insured depositors have fifteen (15) months after the date of closure of an institution within which to submit claims for their insured deposit from the BDIC. The BDIC may give notice prior to the expiration of insurance coverage to all depositors who have not claimed their insured deposit that such claims may still be made. Such notice may be given at any time prior to the fifteenth month and at the beginning of the fifteenth month. The notice will be published for at least four days in the fifteenth month in one or more media.

However, if any depositor in the closed institution shall fail to claim his insured deposit from the BDIC within fifteen months after the institution is closed by the Courts, or shall fail within such period to claim or arrange to continue the transferred deposit with the transferee or paying agent bank, such depositor will then have to make his claim on the estate of the closed institution, such claims shall then be paid pro rata as the assets of the institution are collected and sold. The depositor will have no claim to deposit insurance. The amount of any transferred deposits not claimed within such fifteen months period, shall be refunded to the BDIC or through a Transferee Bank.

While the depositor who fails to make claims for his/her insured deposits within such fifteen month period will be barred from claiming deposit insurance coverage, the depositor may be entitled to file a common or general claim against the Receiver/Liquidator of the institution for such unclaimed deposit within the time established for filing such claims.



Please Note: This website is designed to give general information about deposit insurance and should not be relied upon as definitive. The actual deposit insurance coverage provided by BDIC following the failure of a member institution is based on the deposit account records at the failed member institution and is governed by the Deposit Insurance Act.