Level and scope of insurance coverage

The Fund carries out mandatory insurance of deposits and savings of depositors.

 In accordance with the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings” (as amended by the Law of the Republic of Tajikistan “On Amendments and Supplements to the Law of the Republic of Tajikistan “On Insurance of Savings of Individuals” dated 15.03.2023 No. 1961), depositors whose funds are subject to insurance are individuals, including individual entrepreneurs, as well as legal entities of small business entities and non-profit organizations.

Deposits and savings of depositors in national and foreign currencies placed on savings and term accounts, as well as on bank payment cards of a credit institution, which are confirmed by bank deposit agreements and (or) bank accounts of salary and pension payment cards and (or) savings books, are objects of compulsory insurance.

At the same time, the following are not subject to compulsory insurance:

 — metal accounts of individuals and legal entities;

— money and assets deposited in bank safe deposit boxes;

— bank certificates;

 — deposit and savings accounts of legal entities, with the exception of small businesses and non-profit organizations;

 — deposit and savings accounts opened in Islamic credit institutions;

— electronic money;

— deposit and savings accounts, the rights to which are transferred to other persons on the basis of an agreement concluded outside the credit institution;

— deposit and savings accounts, the owner of the right to dispose of which in the credit institution is not determined.

Deposit insurance is completely free for depositors and does not require the conclusion of a special insurance contract – all expenses and funds are borne by the credit institutions and the Fund themselves.

Depositors’ funds are automatically insured, and in the event of an insured event, compensation is paid by the Fund.

Therefore, when an insured event occurs in a credit institution, depositors have the legal right to receive insurance compensation for their savings in the credit institution.

What is an insured event?

An insured event is the forced liquidation of a credit institution by a court decision not on the grounds of bankruptcy or on the grounds of bankruptcy in accordance with the Law of the Republic of Tajikistan “On the Liquidation of Credit Institutions”, as a result of which the obligations of the Deposit and Savings Insurance Fund of Tajikistan arise to pay the amount of insurance compensation to depositors of a bankrupt credit institution.

Amount of insurance compensation

In the event of an insured event, the Fund pays depositors compensation for deposits and savings in a credit institution within the maximum amount of insurance compensation established by law.

In accordance with the Law, the amount of compensation for insured deposits and savings is no more than 35,000 somoni.

In accordance with the procedure established by the Law, the amount of insurance compensation is established as follows:

 — If a depositor has several deposit and savings accounts in a credit institution, these accounts are recognized as one savings account and compensation is paid based on the total amount of funds in the deposit and savings accounts in an amount not exceeding 35,000 somoni;

— If an insured event occurs in several credit institutions in which the depositor has deposit and savings accounts, the amount of insurance compensation is calculated separately for each credit institution. Interest on deposits and savings is not reimbursed by the Fund.

If the deposit and savings account agreement provides for interest capitalization, then compensation will be paid on the balance of the deposit and savings accounts. Deposits and savings placed in national currency are reimbursed in national currency.

Deposits and savings placed in foreign currency are reimbursed in national currency at the official exchange rate set on the day of the insured event.

* — Note: If the amount of deposits and savings of the depositor in the liquidated credit institution exceeds the amount of insurance compensation, the remaining amount is paid by a special administrator (liquidator) in the manner prescribed by law.

At the same time, in the event of an insured event, compensation is not paid on the following deposits and savings:

• deposits and savings obtained by criminal means or a deposit and savings seized by the court;
• deposit and savings which, according to the conclusion of the National Bank of Tajikistan, contributed to the deterioration of the financial position of the credit institution;
• deposit and savings of certain legally related (affiliated) persons of the credit institution, as well as persons who were considered as such during the last year prior to the liquidation of the credit institution;
• deposit and savings of partners of the audit firm who were involved as auditors of the credit institution in the calendar year preceding the date of occurrence of the insured event;
• savings of individuals owning more than five percent of the shares of the credit institution on a beneficial basis;
• deposit and savings placed in foreign branches of the credit institution;
• deposit and savings in the amount of any outstanding debt of the depositor to the credit institution;
• deposit and savings in the amount of less than 10 somoni.