The complexity of Deposit Guarantee Claims depend on the quality of the available information. Administratively sophisticated jurisdictions with extensive regulatory frameworks often envision direct links between a failed financial institution and the DGS administration. Claim submission and verification is then easier to accomplish and faster to honor. Countries that profoundly defend banking secrecy often make information sharing of account holder details more difficult. Other factors that determine the terms of DGS claim submission relate to the currency involved, the type of creditors of the financial institution and the distinction between local account holders and non-resident depositors. All of these aspects contain different risk profiles and should be handled accordingly.
For effective deposit insurance protocols that safeguard the financial system, DGS administrators follow both local guidelines and international frameworks. Account holders may be required to meet with the DGS administrators in person to satisfy the requirements of the DGS fund. The terms of claim submission and verification therefore depends on the type of creditors and their respective risk profiles.
General terms to submit a DGS involve the completion of a claim form by the account holder and proof of ownership of the account. Upon receipt of the claim form, the DGS administration must ensure that payment is only made to those creditors eligible to coverage. The administration of the bank serves as the customer database that contains creditor information. Claim forms and the evidence therein must synchronise with such databases. It is therefore critical that account holders verify the data in their files. Privacy regulation such as the EU wide accepted GDPR allow individual bank customers to lift their personal data to see what information is being stored on them.
Most Deposit Guarantee Schemes present a claim form to account holders for completion. Claim verification is provided by a certified account statement. Certification of such account information is then be done by the bank. The next step is that the claimant must submit documented evidence of his identity and where applicable the corporate structure under which he or she operates. Since companies can change ownership and lose their legal status, supporting evidence must present a recent standing and status. For most jurisdictions this information can be found on the government issued Certificate of Good Standing and Certificate of Incumbency. Most DGS administrators require these documents in original format, apostilled by the court to ensure its content is original and correct.