What is the purpose of PDIC Law?

The PDIC is a government instrumentality created in 1963 by virtue

of Republic Act No. 3591 to insure the deposits of all banks.

What are the functions of PDIC?

The PDIC exists to protect depositors by providing deposit

insurance coverage for the depositing public and to help promote
financial stability.

What is the meaning of deposit as defined in the PDIC Law?

The term ‘deposit’ means the unpaid balance of money or its equivalent
received by a bank in the usual course of business and for which it has
given or is obliged to give credit to a commercial, checking, savings,
time or thrift account, or issued in accordance with Bangko Sentral rules
and regulations and other applicable laws.

What is an insured deposit?

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.

Can the maximum deposit insurance be adjusted?

Under R.A. No. 9576, the PDIC may propose to adjust the Maximum

Deposit Insurance Coverage, 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.

What are the deposits not covered by insurance?

The following are excluded from PDIC deposit insurance, whether they are denominated,
documented, recorded or booked as deposit by the bank.

 Investment products such as bonds and securities, trust accounts and

other similar instruments
 Deposit accounts or transactions that:
  Are unfunded, fictitious or fraudulent.
 Constitute and/or emanate from unsafe and unsound banking
practice/s as determined by the PDIC, in consultation with the BSP,
after due notice and hearing and publication of PDIC’s cease & desist
order against such as deposit accounts/transactions.
 Are determined to be proceeds of an unlawful activity as defined in
the Anti-Money Laundering Act (Republic Act 9160, as amended).

What is a systemic risk

Systemic risk refers to the risk of a breakdown of an entire system

rather than simply the failure of individual parts. In a financial context, it
denotes the risk of a cascading failure in the financial sector, caused by
linkages within the financial system, resulting in a severe economic
downturn.

What is splitting of deposits

Splitting of deposit occurs when a deposit account of more than the

maximum deposit insurance coverage under the name of a natural or
juridical person is broken down and transferred into two or more
accounts in the names of persons or entities with no beneficial
ownership on the transferred deposits.

Who are 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.

Who are required to file deposit insurance claims

On the other hand, depositors who are required to file deposit insurance
claims are the following:

Those with valid deposit accounts with balances of more than

Php100,000.00;
Those with outstanding obligations with the closed bank either as
borrower, co-maker, or as spouse of borrower;
Those with incomplete mailing address found in the bank records, or
failed to update them through the MAUF issued by the PDIC;
Those with accounts maintained under the name of business entities;
Those with accounts not eligible for early payment, regardless of types
of account and account balance per advice of PDIC; and
Those who are deceased whose filing of claim is thru the legal heirs.

What are the requirements in filing claims

ORIGINAL EVIDENCE OF DEPOSITS such as savings passbook,

certificate of time deposit, bank statement, used or unused checks, or
ATM card.

3.2. ONE (1) VALID ORIGINAL PHOTO-BEARING

IDENTIFICATION DOCUMENT (ID) with clear signature of
depositor/claimant (e.g. Driver's License, SSS/GSIS ID, Senior Citizen's
ID, Passport, PRC ID, OWWA/OFW ID, Seaman's ID, Alien Certificate
of Registration ID, Voter's ID) or PhilID. (IT IS RECOMMENDED TO
BRING AT LEAST TWO (2) VALID IDs IN CASE OF DISCREPANCIES
IN SIGNATURE).

3.3. For depositors below eighteen (18) years old, photocopy of

birth certificate from the Philippine Statistics Authority (PSA) or a duly
certified copy issued by the local civil registrar, and valid ID of the
parent.

3.4. Original 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.
(please click to download the sample Form of SPA).

3.5. Claim Form:

Who should sign the claim form

.1 DEPOSITOR of the account

� for depositor 18 years old and above

4.2 PARENT

� of depositor below 18 years old

4.3 AGENT

� in the case of "by" account

 4.4 TRUSTEE

� in the case of "In Trust for (ITF)" account

4.5 EACH DEPOSITOR/ACCOUNT HOLDER for account

maintained as "Or", "And/Or" or "And"

� in the case of joint accounts

4.6 AUTHORIZED REPRESENTATIVE/s

� for business entities, deceased depositors and person who has

Special Power of Attorney (SPA) from the depositor.

When should the claim be filed

Claims are filed during the onsite Claims Settlement Operations (CSO)
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 PDIC's takeover of the closed bank to file their deposit
insurance claims. After the two-year period, the depositor's right to claim
for deposit insurance is barred pursuant to Section 21(e) of R.A. 3591,
as amended.

When is the insurance paid by PDIC?

The claim for insured deposit should be settled within six (6) months
from the date of filing provided all requirements are met but the claim
must be filed within twenty-four (24) months after bank takeover.