Deposit and Investment Insurance | Luminor
Principal information about the deposit protection

  • Deposits held at our Bank are insured by the State enterprise Indėlių ir investicijų draudimas
  • Protection limit - up to 100,000 Eur for a single depositor for all deposits held at a single credit institution1
  • If you have more than one deposit at the same credit institution, all your deposits held at this credit institution are aggregated and a protection limit of 100,000 Eur is applied to the total deposit amount1
  • If you share a joint account with another person(s), a limit of 100,000 Eur is applied individually for each depositor2
  • The term for the payment of deposit insurance benefits in the event that the credit institution fails to fulfil its obligations is 20 working days3
  • The currency of the deposit insurance benefits is euro
  • Contact data: SE Indėlių ir investicijų draudimas, Algirdo St. 31, Vilnius, tel. + 370 5 213 5657, fax + 370 5 213 5546, idf@idf.lt
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Notes
1 In the event the deposit is not repaid because the financial institution is not able to fulfil its financial obligations, the State enterprise Indėlių ir investicijų draudimas shall disburse the insurance benefit. The maximum insurance benefit for deposits held at a single credit institution for a single depositor is 100,000 Eur. The insurance benefit amount shall be determined by aggregating all the deposits held at the same credit institution. For example, if a depositor has a savings account with 90,000 Eur and a current account with 20,000 Eur, the depositor will receive an insurance benefit of 100,000 Eur.
In specific cases (where: the funds for residential housing owned by the depositor have been transferred to the account of the depositor no earlier than 6 months before the deposit was insured; the depositor inherits funds according to a will or by law; the depositor, in the event of a death, receives insurance benefits as the beneficiary according to a life insurance or similar contract; the depositor receives, in the cases set forth by the law, funds as compensation due to the death of another person while performing work-related or professional duties, or identical disbursements; or when the depositor is receives funds or compensation for injury suffered due to violent crime) the deposits are insured for over 100,000 Eur.
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2 If the customer has a shared account with other person(s), a protection limit of 100,000 Eur shall be applied to each joint holder of the deposit.

3 Disbursement of insurance benefits.
State enterprise Indėlių ir investicijų draudimas (Algirdo St. 31, Vilnius, tel. + 370 5 213 5657, fax + 370 5 213 5546, idf@idf.lt, www.iidraudimas.lt) is responsible for the deposit insurance system. The State Enterprise Indėlių ir investicijų draudimas shall repay deposits (capped to 100,000 Eur) no later than:
  • 20 working days, until 31 December 2018
  • 15 working days, from 1 January 2019 until 31 December 2020
  • 10 working days, from 1 January 2021 until 31 December 2023
  • 7 working days, from 1 January 2024
Where, in the period until 31 December 2023, the deposit insurance benefits are not disbursed within 7 working days from the date the deposit is insured, starting 16 May 2016, at the request of a depositor, within 5 working days the depositor shall receive part of the deposit insurance benefit in the amount equal to the minimum monthly wage, but not larger than the insurance-eligible deposit amount held by the depositor (advance deposit insurance benefit).
In the event no insurance benefit is paid to the depositor within the terms indicated above, the depositor should contact the State enterprise Indėlių ir investicijų draudimas.
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Other relevant information

In principle, all retail and corporate deposits are insured by the State enterprise Indėlių ir investicijų draudimas.

Certain deposits are subject to exceptions specified on the website of the State enterprise Indėlių ir investicijų draudimas and below. At the request of a customer, the credit institution shall also provide information regarding whether certain products are insured. Where deposits are insured, the credit institution shall provide certification of this in the account statement.

Cases in which deposits are not insured

The following shall not be subject to deposit insurance:
1) deposits of other credit institutions held at their own expense and on their own behalf;
2) other "Luminor" funds;
3) deposits in relation to which a conviction judgement has been passed in a criminal case concerning money laundering;
4) deposits of financial institutions;
5) deposits of management companies;
6) deposits of financial brokerage companies;
7) deposits of unidentified owners (deposits held in anonymous and encrypted accounts);
8) deposits of insurance and reinsurance companies operating according to the Law on Insurance of the Republic of Lithuania;
9) deposits of collective insurance undertakings;
10) deposits of pension funds;
11) deposits of State and municipal institutions and agencies as defined under the Law on Public Services of the Republic of Lithuania, except those funds owned by other persons and held in the accounts of such institutions and agencies;
12) deposits of the Bank of Lithuania;
13) debt securities and obligations issued by "Luminor" related to bank acceptances and promissory notes;
14) electronic money and funds received by electronic money institutions from holders of electronic money for the purpose of exchange into electronic money.

Restrictions on the disbursement of deposit insurance benefits

Restrictions on the disbursement of deposit insurance benefits

1. No deposit insurance benefits are paid with respect to:

1) deposits, funds, money, securities and obligations that are not covered by deposit insurance;
2) depositors for deposits in accounts in which no deposit-related operations have been executed during 24 months preceding the deposit insured event, and in which the amount of the deposit is less than 10 Eur.
2. The disbursement of deposit insurance benefits shall be suspended in the event that a depositor or another person entitled to claim the deposit insurance benefit has been indicted on money laundering charges pending the enforcement of the court’s final decision.

Obligations of "Luminor" with respect to investor protection

Luminor Bank AB (hereinafter – "Luminor") is a participant of the obligations to investors insurance system of the Republic of Lithuania.
The State enterprise Indėlių ir investicijų draudimas insures obligations to investors under the conditions and pursuant to the procedure set forth in the Law on Insurance of Deposits and Investments of the Republic of Lithuania.

Protection threshold

A maximum insurance benefit amount (no more than 22,000 Eur) is applied to a single investor. The amount of the insurance of obligations to investors is equal to the obligations assumed by "Luminor" as of the date of the insured event; however, it may not be greater than 22,000 Eur. Insurance benefits with respect to deposits and insurance benefits with respect to obligations to investors shall be calculated and disbursed separately.
The investor shall become entitled to the insurance benefit as of the date of the insured event related to the obligations to investors, where "Luminor" is not in a position to fulfil the following obligations to the investor, assumed according to legal acts or contracts:
1) repay to the investor the funds owned thereby or on their behalf that were transferred to "Luminor" in order to make use of the investment services provided by the Bank;
2) repay to the investor the financial instruments owned by the investor or held, managed or handled on their behalf, and transferred to "Luminor" in order to make use of the investment services provided by the Bank.

Insured event – instigation of bankruptcy proceedings with respect to "Luminor", or a decision by the supervisory authority recognising the Bank to be insolvent, where the Bank, due to reasons related to its financial standing, is not able to fulfil its obligations to investors and there is also reason to believe that it will not be able to do so in the near future.
The financial instruments of an investor, irrespective of the currency of their denomination, and/or funds in all currencies are subject to insurance of obligations to investors.
An investor is a natural person or legal entity, or other organisation, that has transferred funds and/or financial instruments, intending to use the investment services provided by the Bank, or, in the case of a joint investment, each joint holder of the funds or financial instruments transferred to the Bank (a natural person or legal entity, or other organisation).
Obligations to the following investors are not subject to insurance:
1. Bank of Lithuania;
2. credit institutions;
3. financial brokerage companies;
4. financial institutions;
5. insurance and reinsurance companies operating according to the Law on Insurance of the Republic of Lithuania;
6. pension funds;
7. collective investment undertakings.

Investment risk is not subject to insurance.

No deposit insurance benefits shall be paid to the following investors:
1. investors, the obligations in respect of which assumed by "Luminor" are not subject to insurance;
2. investors in respect of whose financial instruments and/or funds a conviction judgement has been passed in criminal proceedings concerning money laundering;
3. Heads of bank administration, members of the Board (Supervisory Board) or the Council, persons holding no less than 5% of the authorised capital of "Luminor", persons carrying out an independent audit of the Bank (who have carried out an audit no later than one year prior to the insured event), close family members acting on behalf of the persons indicated in the present Item, and third parties.

Examples of circumstances or claims for which the insurance system is not applicable.
1. Investment risk is not subject to insurance: in the event the issuer does not redeem debt securities, or the value of an acquired financial instrument has decreased – this does not become an object of insurance of obligations to investors.
2. The insurance of obligations to investors is applied to the obligation of "Luminor" to return financial instruments (in the meaning of the Law on Markets in Financial Instruments (hereinafter – LMFI). Savings bonds of the Government of the Republic of Lithuania are not financial instruments within the meaning of the LMFI; therefore, in the event "Luminor" fails to fulfil its obligation to return savings bonds, no insurance will be applied to the obligation to investors. 

Insurance benefit amount

The insurance benefit in relation to the obligations to investors shall be calculated by summing up all the funds and financial instruments of the investor that "Luminor" is not in a position to repay to the investor; however, the total amount of the benefit may not exceed 22,000 Eur.

The amount of the insurance benefit to an investor shall be calculated on the basis of the market value of the financial instruments of the investor on the day of the insured event. The amount of the insurance benefit with respect to obligations to investors in a foreign currency shall be calculated according to the euro-foreign currency exchange rate published by the European Central Bank on the date of the insured event, or, in the event the European Central Bank does not publish said exchange rate, according to the most recent reference exchange rate published by the Bank of Lithuania.

In the event funds and/or securities are claimed by a group of persons

In the event a group of people (shared investment) has a claim to funds and/or financial instruments, then each person is considered to be an investor and the funds and the financial instruments shall be distributed to each investor in equal shares, unless the contracts from which the claim arises or  court ruling provides otherwise.

This means that, for the purpose of determining the amount of the insurance benefit, the shared financial instruments and funds are allocated to each investor according to the share they are entitled to. However, all financial instruments and funds of a single investor shall be cumulated, and the total amount shall be subject to a limit of 22,000 Eur.

Term for the payment of insurance benefits

The State enterprise Indėlių ir investicijų draudimas shall insurance benefits within 3 months of the insured event. The Board of the State enterprise Indėlių ir investicijų draudimas may extend this term for a period no longer than 3 months.
In the event no insurance benefit is paid to the customer within the terms indicated above, the customer should contact the State enterprise Indėlių ir investicijų draudimas, because the investor’s entitlement to an insurance benefit remains valid for 5 years after the insured event, following which the investor may lose their right to claim the insurance benefit.

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Postponing the term for insurance benefit pay out

In the cases provided by the Law of the Republic of Lithuania on Deposit Insurance and Insurance of Liabilities to Investors (for more details please visit iidraudimas.lt), the pay out of the deposit insurance benefit may be postponed, e.g. in case of the lack of data to evidence the right to the deposit insurance benefit or due to the ongoing legal proceedings about the deposit, or in case the right to dispose of the deposit is restricted to the depositor.
 

Currency of the benefit

Insurance benefits are paid to investors in euro.

Contact information

Detailed information about the deposit insurance conditions and the cases in which deposits are not covered and the payout limits apply to them is available on the website of VĮ Indėlių ir Investicijų Draudimas (Deposit and Investment Insurance) www.iidraudimas.lt.