From CDIC's site:
Is interest on a savings account or term deposit included in the
coverage? How is the interest calculated in the event of a failure?
CDIC insures eligible deposits at each CDIC member institution up to a
maximum of $100,000 (principal and interest combined).
Accrued interest (monthly or annually), will be calculated on eligible
deposits up to the date of the deposit insurance payment or the date
on which a court application is filed to wind up the failed
institution, whichever comes first, and will be included in the
deposit insurance payment, subject to coverage limits.
Thus, for the case you specify, you'd have to include dates as if the bank goes bankrupt very close to the end of the first year, then 1020 would come back, assuming the GIC matures in 5 years or less which is another condition on what CDIC covers, though if the bank goes bankrupt in the first month, 1000 would likely be returned as no interest has accrued yet.