M.

Person Eligible to Sign the Insurance Claim Form

1. Depositor of the Account
 For depositors 18 years old and above
2. Parent
 If the depositor is below 18 years old
3. Agent
 In the case of “By” accounts
4. Trustee
 In the case of “In Trust For” (ITF)’ accounts
5. Each 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
duly authenticated SPA.

 In the case of a depositor residing abroad, an SPA duly authenticated by the

Philippine Consulate nearest his residence

N. 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
 Depositors have two (2) years from PDIC’s takeover of the closed bank to file
their deposit insurance claims.

O. Mode of Payment of the PDIC for Insured Claims

Whenever an insured bank has been closed on account of insolvency, payment
of the insured deposits in such bank shall be made PDIC as soon as possible either
1. by cash; or
2. by making available to each depositor a transferred deposit in another
insured bank in an amount equal to the insured deposit of such depositor.
P. Commencement of PDIC of Determination of Insured Deposits

 Upon actual takeover of the closed bank

 The PDIC shall publish the notice once a week for at least three (3) consecutive
weeks in a newspaper of general circulation or, when appropriate, in a
newspaper circulated in the community or communities where the closed bank or
its branches are located.

Q. Withholding of Payment
PDIC may withhold a portion of the payment of the insured deposit of any
depositor in a closed bank to provide for the payment of
 Liability of the depositor as a stockholder of the closed bank; or
 Liability of such depositor to the closed bank or its receiver, which is not
offset against a claim due from such bank, pending the determination and
payment of such liability by such depositor or any other liable therefor.

R. Failure of PDIC to Settle the Claim

 Failure of PDIC to settle the claim within 6 months from the date of filing of
claim for insured deposits, and such failure was due to grave abuse of
discretion, gross negligence, bad faith, or malice.
 It will subject the directors, officers or employees of the Corporation
responsible for the delay, to imprisonment from six (6) months to one (1)
year.
 The period shall not apply if validity of the claim requires the resolution of issues
of facts and or law by another office, body or agency.

S. Effects of Failure of Depositor to File a Claim

If the depositor in the closed bank shall fail to claim his insured deposits with the
PDIC within two (2) years from actual takeover of the closed bank by the receiver, or
does not enforce his claim filed with PDIC within two (2) years after the two-year period
to file a claim, the effects are:

 all rights of the depositor against PDIC with respect to the insured deposit
shall be barred
  all rights of the depositor against the closed bank and its shareholders or
the receivership estate to which PDIC may have become subrogated,
shall thereupon revert to the depositor
 PDIC shall be discharged from any liability on the insured deposit.

T. Other Points to Remember

 PDIC is created in order to protect depositors in case a bank closes and to

ensure financial stability within the banking system of the Philippines.
 The total share of a co-owner may exceed the amount of P500,000 but will only
be insured up to the Maximum Deposit Insurance Coverage (MDIC) of P500,000.
 The PDIC will not accept claims that are incomplete or lacking in requirements.
 The PDIC may also require additional documents during the CSO.
 PDIC, as a Receiver, has the authority to adjust the interest rate on unpaid
interest if it is deemed unreasonably higher compared to the market rates.
 Standard procedures for claims settlement may not apply if the closed bank
failed to properly turn over to the PDIC its complete records. Without the
complete records, the PDIC will not be able to conduct the validation process
needed before deposit insurance claims are paid.

OTHER NOTES:
What are not covered by PDIC deposit insurance?
Republic Act No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:

 Investment products such as bonds and securities, trust accounts and other
similar instruments
 Deposit accounts which are unfunded, fictitious or fraudulent.
 Deposit products constituting or emanating from unsafe and unsound banking
practices.
 Deposits that are determined to be proceeds of an unlawful activity as defined
under the Anti-Money Laundering Law
What are considered unsafe and unsound banking practices?

 Deposit-related practice/activity/transaction without the approval or adequate

controls required under existing laws, rules and regulations
  Failure to keep bank records within bank premises
 Granting high interest rates, when bank has
i. negative unimpaired capital, or
ii. liquid assets to deposit ratio less than 10%
 Non-compliance with PDIC regulations
Does a depositor need to pay any insurance premium to the PDIC to be covered?

 No. The insurance premium is paid by the banks, not by the depositors.

What is the PDIC deposit insurance coverage if:

a. A depositor has several types of accounts in a bank?
 The PDIC insurance coverage will not increase and will be up to P500,000 in
total.
b. A depositor has several deposits in different banks?
 The PDIC insurance coverage is up to P500,000 per bank
c. A depositor has a deposit in a bank’s main office, and also in its branches?
 The PDIC insurance coverage shall not exceed P500,000.
Questions:
True of False
1. PDIC needs to settle claims of depositors within 6 months from the date of the
filing of the claim.
2. When a depositor has a deposit in a bank’s main office, and also in its branches,
the PDIC insurance coverage is up to P500,000 per branch.
3. A depositor needs to pay an insurance premium to be covered by the PDIC
Deposit Insurance.
4. A depositor is not covered by the PDIC Deposit Insurance if its deposit accounts
are unfunded, fictitious or fraudulent.
5. Depositors have one year from PDIC’s takeover of the closed bank to file their
deposit insurance claims.
6. When a depositor in the closed bank fails to claim his insured deposits with the
PDIC within two (2) years from actual takeover of the closed bank by the receiver,
PDIC is still liable on the insured deposit.
7. PDIC shall not pay deposit insurance on investment products such as bonds and
securities, trust accounts and other similar instruments .

8. Payment of insured deposit can be done by transferring the deposit in another

insured bank.
9. PDIC has no authority to adjust the interest rate on unpaid interest if it is deemed
unreasonably higher compared to the market rates.
10. PDIC has no right to withhold a portion of the payment of the insured deposit of
any depositor in a closed bank.
Answers:
1. T
2. F
3. F
4. T
5. F
6. F
7. T
8. T
9. F
10. F
Multiple Choice
1. Majoha maintains P500,000 in the Gomburza Bank. In the event of a closure
of Gomburza bank, Majoha shall file his claim within:
a. the month of actual closure of bank
b. 1 year from actual takeover of the closed bank
c. the month from actual takeover of the closed bank
d. 2 years from actual takeover of the closed bank

2. Failure to settle claims within 6 months due to grave abuse of discretion,

gross negligence, bad faith, or malice will:
a. Subject the directors, officers or employees of the corporation
responsible for the delay.
b. It might lead to imprisonment from 6 months to 1 year
c. Both A and B
d. None of the above

3. PDIC will not pay any deposit insurance for the following accounts and
transactions except
a. Bonds and securities
b. Deposits accounts which are fictitious
c. Deposits that are proceeds from illegal activities
d. Individually owned accounts held under one name

4. The following are the effects when the depositor fails to claim his deposit
insurance from PDIC within two years except
a. All rights of the depositor against PDIC with respect to the insured
deposit shall be barred
b. All rights of the depositor against the closed bank and its shareholders
or the receivership estate to which PDIC may have become
subrogated, shall thereupon revert to the depositor
c. PDIC is still liable on the insured deposit.
d. All of the above are the effects when the depositor fails to claim his
deposit insurance within two years.

5. J. Rizal has a P1,000,000 deposit in the main branch of Noli Bank. In

addition, he has also a P500,000 deposit in Noli Bank’s Calamba branch.
Which of the following statements is true?
a. J. Rizal’s insurance coverage is P1,500,000.
 b. J. Rizal’s insurance coverage is P500,000 per branch, for a total of
P1,000,000
c. J. Rizal’s insurance coverage shall not exceed P500,000
d. J Rizal’s insurance coverage is P750,000

Identification
1. Pepe is currently residing in Spain. Back in the Philippines, he has a deposit of
P500,000 in Bagumbayan Bank, which unfortunately closed. Since he cannot go to the
Philippines due to his busy schedule to file a deposit insurance claim, what remedy can
Pepe do?
 In the case where a depositor is unable to file his claim personally because he
was living abroad, a representative may file on his behalf by presenting a Special
Power of Attorney (SPA), duly authenticated by the Philippine Consulate nearest
his residence.

2. Melchora a.k.a Ninoy Aquino has a P500,000 in Katipunan Bank. In the event of
closure of Katipunan bank, she shall file her claim within:
 Two (2) years from PDIC’s takeover of the closed bank

3. Who shall sign the deposit insurance claim in the case of joint accounts such as “Or”,
“And/Or” or “And” accounts?
 Each depositor of the joint account

4. When is the start of the commencement of PDIC in the determination of insured

deposits?
 Upon actual takeover of the closed bank

5. Can PDIC withhold a portion of the payment of the insured deposit of any depositor in
a closed bank?
 Yes, PDIC can withhold a portion of the payment of the insured deposit of
any depositor in a closed bank as a payment for the liability of the
depositor as a stockholder of the closed bank or the liability of such
depositor to the closed bank or its receiver, which is not offset against a
claim due from such bank, pending the determination and payment of
such liability by such depositor or any other liable therefor.