--- title: "EBA Q&A 2019_4542 — Q&A — Insurance policy on minimum monetary amount [Final Q&A]" shortTitle: "EBA Q&A 2019_4542 — Q&A — Insurance policy on minimum monetary amount [Final Q&A]" answer_id: EBA_QA_2019_4542 status: "Final Q&A" type: qa instrument_type: qa authority: EBA binding: false binding_character: non_binding legal_status: in_force regulation: "PSD2" psd2_level3: true mica_level2: false legal_basis: "Article 5 PSD2" date: 31 July 2020 source_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2019_4542 lifecycle: "Final Q&A" text_version: "EBA Q&A register, 31 July 2020" source_url: "https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2019_4542" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the EBA publication" source: prepared_by: "EBA" published_by: "EBA" published_in: "EBA Single Rulebook Q&A tool" evidence: prepared_by: "Answer prepared by the EBA." locator: "EBA Q&A register entry 2019_4542, field 'Answer prepared by'" document_type: "qa_answer" legal_nature: "not_legislation" addressees: "not stated in the document" dates: published_on: "2020-07-31" question_submitted_on: "2019-02-12" locators: published_on: "EBA Q&A register entry 2019_4542, field 'Final publishing date'" question_submitted_on: "EBA Q&A register entry 2019_4542, field 'Submission date'" lifecycle_label: "Final Q&A" --- **Answer by the EBA, published in its Q&A tool · not legislation · published 31 Jul 2020 [Final Q&A]** *Final Q&A · EBA Q&A register, 31 July 2020 · Checked against the EBA publication on 26 Oct 2026 · [Official source](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2019_4542)* | | | |---|---| | **Full title** | EBA Q&A 2019_4542 — Q&A — Insurance policy on minimum monetary amount \[Final Q&A\] | | **Prepared by** | EBA | | **Published by** | EBA, in the EBA Single Rulebook Q&A tool | | **Reference** | EBA_QA_2019_4542 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 31 July 2020; question submitted 12 February 2019 | | **Legal basis** | Article 5 PSD2 | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the EBA publication | **Insurance policy on minimum monetary amount of the professional indemnity insurance of PSD2** ### Question If an e-money payment institution (for the purpose of new PSD2 services - Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP) in line with insurance industry standards signed an insurance policy with insurance company for several thousand/million euros with franchise deductible (e.g. in the amount of 25k EUR), fulfills adequate capital requirements and is being regularly monitored by the regulator (local central bank), does the above mentioned insurance policy violate guidelines rule that the insurance policy should not have any excess, deductible or any threshold that could prejudice repayments or do we understand it correctly that such insurance policy does not in any case prejudice that potential refunds requests will not be refunded and it as such fulfills guideline requirements? We understand that such insurance does not prejudice any repayments. ### Background E-money payment institution (EMI) has (for the purpose of new PSD2 services - PISP and AISP), signed an insurance policy with international leading insurance company for several thousand/million euros with franchise deductible (e.g. in the amount of 25k EUR). Respectively, EMI fulfills adequate capital requirements and is being regularly monitored by the regulator (local central bank). As an e-money issuer, we need clarification on the Guideline 1.4 from the Guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance or other comparable guarantee under Article 5(4) of Directive (EU) 2015/2366 (PSD2). We also acknowledge that guidelines do not explicitly determine that the deductible has to be 0 EUR, which is in line with international insurance market standards. Having an adequate insurance policy for several thousand/millions of euros with 25k EUR deductible, having in mind EMI with sufficient capital requirements, it does not in any case prejudice that potential repayments by EMI could not be performed. Capital requirements for EMI in addition and legal requirements are set a level, where all potential repayments will be possible. Being an EMI, having signed adequate insurance policy with internationally renowned insurance company, which is in line with insurance industry standards, having adequate capital requirements regularly monitored, we understand that such insurance policy does not in any case prejudice that potential refunds requests will not be refunded. We understand that such policy fulfills guideline requirements. *** ### Answer Guideline 1.4 of the EBA Guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance (PII) or other comparable guarantee under Article 5(4) of Directive (EU) 2015/2366 (PSD2) prescribes that ‘the minimum monetary amount of the PII or comparable guarantee allows undertakings to effectively meet their liabilities in relation to their activities by verifying that the PII or comparable guarantee does not have any excess, deductible or any threshold that could prejudice repayments resulting from the requests for refunds of payment service users and account servicing payment service providers (ASPSPs) and is valid when the liability occurs’. Guideline 1.3 further specifies that the minimum monetary amount of the PII or comparable guarantee, should cover costs and expenses incurred by payment service users and ASPSPs who request undertakings to refund losses resulting from one or more of the liabilities referred to in Article 5(2) and (3) of PSD2. In relation to the above, the PII or the comparable guarantee should cover the potential costs and expenses that may be incurred by all payment service users of the third party provider (TPP) and ASPSPs resulting from one or more of the liabilities that are referred in Article 5(2) and (3) of PSD2. Where the amount of the cover, has any excess, deductible or any threshold whatsoever, these should not prejudice repayments to payment service users and/or ASPSPs and should be covered by any safeguards the TPP may have put in place, such as a deposit that can be withdrawn within certain conditions, an additional insurance or another comparable guarantee. *** **Source:** [EBA original document](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2019_4542) ## Related Level 1 articles - [Article 5 — Applications for authorisation](../../../articles/5.md)