Conditions for payout

MAS may decide that a deposit insurance payout should be made if:

• A court order has been made to wind up a Scheme member; or
• MAS has determined that a Scheme member is insolvent, unable or likely to become unable to meet its obligations, or about to suspend payments.

Announcement of payout

If a Scheme member fails, all depositors entitled to receive compensation under the scheme will be contacted with details on how compensation will be made. Depositors do not need to file claims with the SDIC as payouts will be computed based on the records of the failed Scheme member.

SDIC will also make official announcements in the Government Gazette, through news stations and daily newspapers, as well as through notices at the failed Scheme member’s branches.

Arrangements will be made by the SDIC to pay out the compensation to depositors entitled to compensation as soon as possible. Payment may be made by cheque or by depositing the amount of compensation into new accounts opened for the insured depositors with another Scheme member appointed by the SDIC.

If the compensation you receive from SDIC is less than your total amount of deposits net of liabilities with the failed Scheme member, you may file a separate claim with the liquidator of the failed institution for the difference. You cannot claim for the amount that has been compensated for by SDIC.