The Deposit Insurance Act (DIA) provides that the JDIC must pay out of the Deposit Insurance Fund in respect of an insured deposit up to the prescribed coverage limit of $1,200,000 to every depositor of a Policyholder in circumstances where the Policyholder fails or is unable to make payment in respect of a deposit. Therefore, the maximum deposit insurance coverage limit is $1,200,000 (principal and interest combined) per depositor, per institution.

For the purpose of deposit insurance coverage, the ownership categories are: