I.

Background
PDIC is a government instrumentality created in 1963 by virtue of
Republic Act 3591 to insure the deposits of all banks which are entitled to the
benefits of insurance. The latest amendments to RA 3591 are contained in
RA 9576 signed into law on April 29, 2009. RA 9576 increased the maximum
deposit insurance coverage to P500,000.00. The new law also includes
important provisions to ensure that the PDIC remains financially and
institutionally strong to fulfill its mandate under its Charter. The PDIC now
has the authority to determine which deposit products are covered by
insurance. The PDIC is also authorized to conduct independent special
examination of banks and may inquire into or examine deposit accounts of
ailing banks in the event there is a finding of unsafe and unsound banking
practices. Part of the financial strengthening measures for the PDIC, on the
other hand, include exemption from taxes and the authority to issue
sovereign bonds, debentures and other debt issuances. The PDIC is an
attached agency of the Department of Finance.
The PDICs overall mandate is to provide permanent and continuing
deposit insurance coverage for the depositing public to help promote public
confidence and stability in the economy. It ensures prompt payment of
insured deposits, exercises complementary supervision of banks, adopts
responsive resolution methods, and applies efficient management of
receivership and liquidation functions.
The functions of the PDIC are:
Deposit Insurer
Co-regulator of Banks
Receiver and Liquidator of Closed Banks
Effective June 1, 2009, the maximum deposit insurance coverage is
P500,000 per depositor. All deposit accounts by a depositor in a closed bank
maintained in the same right and capacity shall be added together.Under
R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to the
approval of the President of the Philippines, in case of a condition that
threatens the monetary and financial stability of the banking system that
may have systemic consequences.
The term insured deposit means the amount due to any bona fide
depositor for legitimate deposits in an insured bank net of any obligation of
the depositor to the insured bank as of date of closure, but not to exceed

P500,000.00.A joint account shall

individually-owned deposit account.

be

insured

separately

from

any

R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:
1. Investment products such as bonds, securities and trust accounts;
2. Deposit accounts which are unfunded, fictitious or fraudulent;
3. Deposit products constituting or emanating from unsafe and unsound
banking practices;
4. Deposits that are determined to be proceeds of an unlawful activity as
defined under the Anti-Money Laundering Law.
Except for the exclusions stipulated in RA 9576 (stated above),
deposits of all commercial banks, savings and mortgage banks, rural banks,
private development banks, cooperative banks, savings and loan
associations, as well as branches and agencies in the Philippines of foreign
banks and all other corporations authorized to perform banking functions in
the Philippines, are insured with PDIC. As for Philippine banks with branches
outside the country, RA 9576 stipulates that subject to the approval of the
Board of Directors, any insured bank with branch outside the Philippines may
elect to include for insurance its deposit obligations payable at such branch.
Foreign currency deposits are also insured by PDIC pursuant to RA 6426 (An
act instituting a foreign currency deposit system in the Philippines, and for
other purposes) and Central Bank (CB) Circular No. 1389. Depositors may
receive payment in the same currency in which the insured deposit is
denominated.
II.

Discussion
a. Insurable Deposits
The Corporation provides the maximum deposit insurance
coverage of Php500,000 per depositor per bank. In promoting
financial stability, the PDIC is tasked to continuously build up the
level of the Deposit Insurance Fund (DIF), the fund source for
deposit insurance payouts and financial assistance to banks, to
enable it to adequately respond to insurance calls. Member-

banks are assessed the annual flat rate of 1/5 of 1% of their total
deposit liabilities. The assessments are collected from memberbanks semi-annually and form part of the DIF. The DIF is
managed through prudent investments, as provided in the PDIC
Charter.
In the event of bank closures, PDIC pays valid deposit accounts
and deposit insurance claims as soon as possible and within the
set turnaround time to provide immediate relief to depositors. Its
quality management system on claims settlement operations is
ISO 9001:2008 certified and at par with international standards.
(Under PDIC Law:)
SEC. 3. Section 4 (g) of the same Act is hereby amended to read as follows:

(g) The term insured deposit means the amount due to any bona
fide depositor for legitimate deposits in an insured bank net of any
obligation of the depositor to the insured bank as of date of closure,
but not to exceed Five hundred thousand pesos (P500,000.00). Such
net amount shall be determined according to such regulations as the
Board of Directors may prescribe. In determining such amount due
to any depositor, there shall be added together all deposits in the
bank maintained in the same right and capacity for his benefit either
in his own name or in the name of others. A joint account regardless
of whether the conjunction and, or, and/or is used, shall be
insured
separately
from
any
individually-owned
deposit
account:Provided, That (1) If the account is held jointly by two or
more natural persons, or by two or more juridical persons or entities,
the maximum insured deposit shall be divided into as many equal
shares as there are individuals, juridical persons or entities, unless a
different sharing is stipulated in the document of deposit, and (2) If
the account is held by a juridical person or entity jointly with one or
more natural persons, the maximum insured deposit shall be
presumed to belong entirely to such juridical person or
entity: Provided, further, That the aggregate of the interests of each
co-owner over several joint accounts, whether owned by the same
or different combinations of individuals, juridical persons or entities,
shall likewise be subject to the maximum insured deposit of Five
hundred thousand pesos (P500,000.00):Provided, furthermore, That
the provisions of any law to the contrary notwithstanding, no
owner/holder of any negotiable certificate of deposit shall be
recognized as a depositor entitled to the rights provided in this Act

unless his name is registered as owner/holder thereof in the books of

the issuing bank: Provided, finally, That, in case of a condition that
threatens the monetary and financial stability of the banking system
that may have systemic consequences, as defined in Section 17
hereof, as determined by the Monetary Board, the maximum deposit
insurance cover may be adjusted in such amount, for such a period,
and/or for such deposit products, as may be determined by a
unanimous vote of the Board of Directors in a meeting called for the
purpose and chaired by the Secretary of Finance, subject to the
approval of the President of the Philippines.

SEC. 4. The maximum deposit insurance coverage of Five hundred thousand

pesos (P500,000.00) provided in Section 4(g) of Republic Act 3591, as
amended herein, shall be paid by the Corporation: Provided, That, for the
first three (3) years from the effectivity of this Act, the first Two hundred fifty
thousand pesos (P250,000.00) of the deposit insurance coverage shall be for
the account of the Corporation, and those in excess of Two hundred fifty
thousand pesos (P250,000.00) but not more than Five hundred thousand
pesos (P500,000.00) shall be for the account of the National Government.
The Congress shall annually appropriate the necessary funding to reimburse
the Corporation for any payment to insured depositors paid in excess of Two
hundred fifty thousand pesos (P250,000.00).
b. Explain maximum liability
c. Enumerate the requirements of claims
REQUIREMENT FOR CLAIM

HOW TO FILE CLAIM FOR DEPOSIT INSURANCE

DEPOSITORS NOT REQUIRED TO FILE DEPOSIT INSURANCE

CLAIMS
Depositors with valid deposit accounts with balances of
Php100,000 and below are not required to file claims provided
they have no obligations with the closed bank and have
complete and updated addresses in the bank records or have
updated these through the Mailing Address Update Form (MAUF)
issued by the PDIC. Depositors with deposit balances of

Php100,000 and below may update their addresses using the

MAUF and submit to PDIC representatives stationed at the closed
bank premises before the start of the onsite claims settlement
operations.
These depositors are entitled to immediate/early payment
of deposit insurance claim as part of PDICs initiative to provide
convenience to small depositors. Payments to these depositors
are sent as postal money orders to the depositors mailing
addresses.
1.

WHEN ARE CLAIMS FILED?

Claims are filed during the claims settlement
operations period, as announced in the Notice to
Depositors published in national or local newspapers, or
posted in the bank premises and conspicuous places within
the locality, and in the PDIC website.

Depositors have two (2) years from PDICs takeover of the

closed bank to file their deposit insurance claims.
2. WHO ARE REQUIRED TO FILE DEPOSIT INSURANCE CLAIMS?
2.1Depositors with valid deposit accounts with balances of more
than Php100,000.
2.2Depositors who have outstanding obligations with the closed
bank regardless of amount of deposits.
2.3Depositors with account balances of less than Php100,000
who have no updated addresses in the bank records or who have
not updated their addresses through the Mailing Address Update
Form (MAUF) issued by the PDIC.
2.4Depositors who maintain their accounts under the name of
business entities, regardless of type of account and account
balance.

2.5Depositors with accounts not eligible for early payment,

regardless of type of account and account balance per advice of
PDIC.
3. WHAT ARE THE STEPS IN FILING CLAIMS?
3.1Prepare the following documents:
3.1.1Original evidence of deposits such as savings
passbook, certificate of time deposit, bank statement, unused
checks, and ATM card.
3.1.2Original copy of TWO (2) VALID PHOTO-BEARING
IDENTIFICATION DOCUMENTS (IDs) with clear signature of
depositor/claimant such as Drivers License, SSS/ GSIS ID, Senior
Citizens ID, Passport, PRC ID, OWWA/ OFW ID, Seamans ID, Alien
Certification of Registration ID, Voters ID, IBP. Please ensure that
the ID number is clear and legible.
3.1.3If the depositor is below 18 years old, a photocopy of
his/her birth certificate from the National Statistics Office (NSO)
or duly certified copy from the local civil registrar and valid IDs of
the parent.
3.1.4Original copy of a notarized Special Power of Attorney
(SPA) for claimants who are not the signatories in the bank
records. In the case of minor depositor, the SPA must be
executed by the parent.
3.2Submit to:
3.2.1If filing Personally
The PDIC representatives at the premises of the closed
bank during Claims Settlement Operations (CSO) or to the PDIC
Public Assistance Center at the 3rd Floor, SSS Bldg., 6782 Ayala
Avenue corner V.A. Rufino Street, Makati City after the onsite
CSO.
3.2.2If filing through Mail

Send the accomplished and notarized Claim Form and

requirements to:
The Claims Processing Department
Philippine Deposit Insurance Corporation
4/F SSS Building, 6782 Ayala Avenue corner
V.A. Rufino Street, 1226 Makati City

The Claim Form may be downloaded from the PDIC

website, www.pdic.gov.ph. The signature in the Claim Form
should tally with the depositors signature in the closed banks
records and in his/her IDs. The PDIC likewise sends letter-notices
to depositors on record who were unable to file their claims
during the onsite CSO on how, where and when to file their
claims. The Claim Form is conveniently enclosed in the letternotice.
4. WHO SHOULD SIGN THE CLAIM FORM?
4.1DEPOSITOR of the account
- for depositors 18 years old and above
4.2PARENT
- if the depositor is below 18 years old
4.3AGENT
- in the case of By accounts
4.4TRUSTEE
- in the case of In Trust For (ITF) accounts
4.5EACH DEPOSITOR

- in the case of joint accounts such as Or, And/Or or And

accounts
If a depositor is unable to file his claim personally, a
representative may file on his behalf by presenting a duly
notarized Special Power of Attorney (SPA,) or in the case of a
depositor residing abroad, an SPA duly authenticated by the
Philippine Consulate nearest his/her residence.
5. HOW CAN CLAIMS BE FOLLOWED UP?
Status of claims may be followed up through any of the following
modes:

Phone
Public Assistance Hotlines
(632) 841-4630/(632) 841-4631
(for depositors in Metro Manila)

Toll Free
1-800-1-888-7342 or 1-800-1-888-PDIC
(for depositors outside Metro Manila)

E-mail
pad@pdic.gov.ph

Helpdesk/Public Assistance Center

3/F SSS Bldg., 6782 Ayala Avenue

corner V.A. Rufino Street,

1226 Makati City
In following up a deposit insurance claim, the depositor should
have the following information ready for easy reference:

Name of the closed bank

Name of the depositor

Claim Number and/or Account Number

Remember!
1
Claims should be filed within the two-year
prescriptive period after PDICs takeover of the closed bank.
2
The PDIC will not accept claims that are incomplete
or lacking in requirements.
3
The PDIC may also require additional documents in
the course of claims processing.
4
The PDIC, as Receiver, has the authority to adjust the
interest rate on unpaid interests on deposits if such rate is
deemed unreasonably higher compared to market rates.
5
The standard procedures for claims settlement may
not apply if the closed bank fails to properly turn over to the PDIC
the closed banks complete records. Without the complete
records, the PDIC will not be able to conduct the validation
process for bank deposits, a requirement before deposit
insurance claims are paid
III.

Illustrative cases