Scope of coverage refers to the types of deposits and depositors eligible for deposit protection coverage that is, those who stand to gain compensation in the event that a contributing financial institution fails. In Zimbabwe, the types of deposits eligible for protection under the deposit insurance scheme include the following:
- time/fixed deposits;
- demand deposits;
- savings deposits;
- interest accrued and/or payable on all deposits;
- and any other liability or financial instrument which DPC may specify by notice in the Government Gazette.
In the event that a contributory banking institution goes bankrupt, the Deposit Protection Corporation (DPC/Corporation) is in charge of compensating protected or insured depositors.
Cover Levels:
- Deposit protection maximum cover level for USD Deposits is pegged at USD1,000 (One Thousand United States Dollars) per depositor per deposit class per contributory banking institution;
- USD500 (Five Hundred United States Dollars) per deposit class per deposit-taking microfinance institution;
- Zimbabwe Gold (ZWG) Deposits – pegged at a maximum cover level of ZWG equivalent to USD1,000 (One Thousand United States Dollars) per depositor per deposit class per contributory banking institution and USD500 (Five Hundred United States Dollars) per deposit class per deposit-taking microfinance institution, using the prevailing interbank USD to ZWG exchange rate.
Coverage for Trust Accounts
If the legal requirements are fulfilled, beneficiaries of trust accounts in contributory institutions are recognized as individual depositors and receive separate protection proportionate to the amount of money in the trust accounts. Only when the trustee in question has provided the banking institution with information about:
- a declaration that the deposit in the trust account is held in trust by the trustee,
- the trustee’s name, address, and identity card number,
- the name, address, and identity card number of each beneficiary, and
- the amount or percentage of each beneficiary’s interest in the trust account does separate protection become apparent.
Classes of deposits NOT covered/insured:
The following products are not eligible for deposit protection coverage:
- securities purchased by a banking institution on behalf of the depositor;
- interbank deposits;
- government deposits – local or foreign;
- a deposit that is not payable in Zimbabwe;
- contents of safety deposit boxes;
- unit trust/managed funds;
- debentures issued by a banking institution;
deposits of executive management, board members