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ILLUSTRATIVE CASES ON DEPOSIT INSURANCE COVERAGE

SINGLE ACCOUNTS / SOLE PROPRIETORSHIP /
“BY” ACCOUNTS / “ITF” ACCOUNTS

Charter Provision: Sec. 5 (k):

“x x x In determining such amount due to any depositor, there shall be added together all deposits in the bank maintained in the same right and capacity for his or her benefit either in his or her own name or in the name of others. x x x”

Illustrative Cases:

Case 1: Single Account/s

Computation of Insured and Uninsured Amount:

Explanations:

All the four deposit accounts (i.e., Account Nos. 1 to 4) are owned by the same person, Juan Dela Cruz, and maintained in the same Bank (Head Office and all its Branches), thus, the balance of the accounts will be added together, as they are maintained in the same right and capacity, regardless of account type and banking unit/branch. Total amount of insured deposit cannot exceed P1,000,000.00, the Maximum Deposit Insurance Coverage (MDIC).
Of the total balance of P1,400,000.00, the amount insured is P1,000,000.00 and the uninsured amount is P400,000.00.

Case 2: Single Account/s and Sole Proprietorship

Computation of Insured and Uninsured Amount:

Explanations:

The first three deposit accounts (i.e., Account Nos. 1 to 3) are owned by the same person, Juan Dela Cruz, hence, the balance of the accounts will be added together.
A sole proprietor is wholly owned by the owner, hence, the Dela Cruz Flower Shop (Account No. 4) owned by Juan Dela Cruz will be added to his first three accounts as all of them (Account Nos. 1 to 4) are maintained in the same right and capacity. The total amount insured cannot exceed P1,000,000.00.
Of the total balance of P1,400,000.00, the amount insured is P1,000,000.00 and the uninsured amount is P400,000.00.

Case 3: Single, “ITF” and “By” Accounts

Computation of Insured and Uninsured Amount:

Explanations:

Juan Dela Cruz is the principal owner of three accounts (i.e., Account Nos. 1, 3 & 4). As these are maintained in the same right and capacity, these accounts will be consolidated.

The single account (Account No. 1) is under his name alone and the other two are “By” accounts (Account Nos. 3 and 4) which are owned by him as the PRINCIPAL DEPOSITOR or BENEFICIAL OWNER while Maria Dela Cruz and Pedro Dela Cruz ACTED AS HIS AGENTS only. Thus, the total insured amount payable to Juan Dela Cruz is P1,000,000.00 and the uninsured amount is P200,000.00.
Antonio Dela Cruz, on the other, hand has only one account (Account No. 2), an “ITF” account in which Antonio is the PRINCIPAL OR BENEFICIAL OWNER and Juan acted as AGENT. Thus, Antonio Dela Cruz is entitled to a separate deposit insurance of P400,000.00 for his savings deposit.

JOINT ACCOUNTS

Charter Provision: Sec. 5 (k)

A joint account regardless of whether the conjunction “and”, “or”, “and/or” is used, shall be insured separately from any individually-owned deposit account/s.
If the account is held jointly by two or more natural persons, or by two or more juridical persons or entities, the maximum insured deposit shall be divided into as many equal shares as there are individuals, juridical person or entities, unless a different sharing is stipulated in the document of deposit.
If the account is held by a juridical person or entity jointly with one or more natural persons, the maximum insured deposit shall be presumed to belong entirely to such juridical person or entity.

Illustrative Cases:

Case 4: Single Account and Joint Account/s

Computation of Insured and Uninsured Amount:

Breakdown of Insured and Uninsured Amount:

Explanations:

Juan Dela Cruz has three accounts, one is under his name alone (Account No. 1) and the other two are jointly maintained by him and Maria or Pedro Dela Cruz (Account Nos. 2 & 3). For the Savings Deposit individually-owned by Juan Dela Cruz (Account No. 1), he is entitled to a separate deposit insurance of P1,000,000.00. The uninsured deposit is P200,000.00.
For the two accounts (Account Nos. 2 & 3) which are jointly maintained by him and Maria or Pedro Dela Cruz, each joint account is considered equally shared among co-depositors unless otherwise indicated in the deposit document. The insurance coverage of P1,000,000.00 will apply to the sum of shares of each co-depositor in the insured portion of each joint deposit account.
For Account No. 2, the maximum deposit insurance is P1,000,000.00 which shall be divided equally between Juan and Maria. The share of Juan Dela Cruz is P500,000.00. There is no uninsured amount.
For Account No. 3, the maximum deposit insurance is P1,000,000.00 which shall be divided equally between Juan and Pedro. The share of Juan Dela Cruz is P500,000.00. The uninsured amount is P500,000.00, thus, his share in the uninsured amount is P250,000.00.

Case 5: Accounts Jointly Owned by Individuals or Natural Persons

Computation of Insured and Uninsured Amount:

Breakdown of Insured and Uninsured Amount:

Explanations:

The individually-owned deposit or single deposit of Juan Dela Cruz (Account No. 1) is entitled to a separate deposit insurance of P1,000,000.00.
For Savings Deposit jointly owned by Juan and Maria Dela Cruz (Account No. 2), the share of Juan and Maria in the MDIC is P500,00.00 each while their share in the uninsured portion is P100,000.00 each.
Shares of each co-owner in each of the joint accounts are added together and insured up to P1,000,000.00 MDIC.
Juan Dela Cruz has three accounts jointly maintained with Maria and/or Pedro Dela Cruz. All his shares in each of these accounts are added together. Hence, of the P1,800,000.00 total shares of Juan, P1,000,000.00 is covered by deposit insurance. The uninsured deposit of Juan Dela Cruz is P800,000.00.
Maria Dela Cruz and Pedro Dela Cruz are also entitled to deposit insurance for their respective shares in the accounts. Pedro Dela Cruz has a share in the uninsured deposit of Account No.3 in the amount of P400,000.00.

Case 6: Accounts Jointly Owned by Individuals/ Natural Persons and Juridical Persons or Entities

Computation of Insured and Uninsured Amount:

Explanations:

The deposit insurance for Savings Deposit (Account No. 1) is to be shared equally between Juan and Maria Dela Cruz. Hence, each of them is entitled to P500,000.00 deposit insurance.
XYZ Corporation is entitled to P1,000,000.00 deposit insurance for its Time Deposit (Account No. 2) and uninsured deposit of P500,000.00.
The Demand Deposit (Account No. 3) maintained in the name of Juan Dela Cruz and ABC Corporation, is presumed to belong entirely to ABC Corporation. Hence, ABC Corporation is entitled to the P1,000,000.00 deposit insurance.

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