The following provides answers to some of the most
commonly asked questions about Jamaica's Deposit Insurance Scheme.
It is a safety net set up primarily to protect depositors in case
their bank or other insured financial institution fails or is unable to
make payments on deposits.
Under the Deposit Insurance Act of 1998, the Jamaica Deposit
Insurance Corporation (JDIC) is vested with the responsibility to manage
the Scheme governed by this Act.
Under the Scheme, insurance premiums are paid into the Deposit
Insurance Fund by policyholders, i.e. financial institutions covered by
the Scheme. Resources from the Fund will be used to honour depositors’
claim in the event that a policyholder is unable to make payments on
deposits.
The Scheme provides a formal system for the Government to deal with
problems which may arise in the financial sector and should contribute
to the restoration of confidence in the financial sector and encourage
savings. Jamaica joins countries like Canada, Trinidad and Tobago,
Germany, the United States of America, the United Kingdom, Venezuela and
India in setting up deposit insurance.
