PDIC

Philippine Deposit
Insurance Corporation
 Philippine Deposit
Insurance Corporation
a government instrumentality created on 22 June
1963 by Republic Act 3591 entitled, An Act
Establishing the Philippine Deposit Insurance
Corporation (PDIC), Defining Its Powers and Duties
and for Other Purposes
• Section 1: There is hereby created a Philippine
Deposit Insurance Corporation hereinafter
referred to as the “Corporation” which shall
insure, as herein provided, the deposits of all
banks which are entitled to the benefits of
insurance under this Act, and which shall have
the powers hereinafter granted.
 Insurable Deposits
PDIC pays deposit insurance on all valid deposits up
to Maximum Deposit Insurance Coverage (MIDC) of
P500,000 per depositor of a closed bank. That amount
includes accounts “maintained in the same right and
capacity for a depositor’s benefit” whether it’s under
his own name or the name of others. PDIC also
determines if these deposits are valid by checking
banking records evidenced by inflow of cash.
• A deposit insurance is essentially the assured
amount a bank depositor gets in the case that
the bank cannot fulfill its obligations. It is
mandatory by law and is designed to maintain
financial stability.
 References
Pingol, Dos (n.d). What you need to know about deposit
insurence. Retrieved from
https://www.securitybank.com/blog/what-you-need-to-
know-about-deposit-insurance/
Official Gazette (n.d). Retrieved from
https://www.officialgazette.gov.ph/1963/06/22/republic-
act-no-3591/
 Maximum liability

Source:
http://www.pdic.gov.ph/files/Deposit%2
0InsuranceBrochure_Final.pdf
 MAXIMUM DEPOSIT INSURANCE
COVERAGE (MDIC)
• PDIC shall pay deposit insurance on all valid deposits up to the
Maximum Deposit Insurance Coverage of Php500,000 per
depositor, of a closed bank. Accounts maintained in the same right
and capacity for a depositor’s benefit, whether in his own name or
in the name of others, are covered by deposit insurance.

• Deposits are considered valid upon the determination by the PDIC,

based on bank records, that the deposits were made with a
corresponding inflow of cash.
 Illustrative examples:
• How much is Jan Dee’s insured deposit if
she has the following four deposit
accounts in the same bank?
ACCOUNT NAME DEPOSIT ( in PHP ) Insured Deposit of Jan
Dee
Jan Dee 100,000 100,000
Jane Dee For the 100,000 100,000
Account of Jan Dee
Joy Dee In Trust For Jan 100,000 100,000
Dee
Jan Dee’s Store 500,000 200,000
( sole proprietorship )
TOTAL 800,000 500,000
• How much is Fe Santos’s insured deposit if she has the following three
joint accounts in the same bank?

ACCOUNT NAME DEPOSIT ( in PHP ) Fe’s Share in the Insured

Deposit
Fe Santos or May Santos 500,000 250,000
Fe Santos and Divine 1,000,000 250,000
Santos
Fe Santos and/or Marie 1,000,000 0*
Santos
TOTAL 2,500,000 500,000

*Ms. Fe Santos does not have any insured deposit share since she
already has P500,000 in total shares in the two joint accounts she has
with May and Devine Santos.
• How much is Janine Ash’s insured deposit
for all her single and joint accounts in the
same bank?

ACCOUNT NAME DEPOSIT ( in PHP ) Ash’s Share in the

Insured Deposit
All single accounts of 1,500,000 500,000
Janine Ash in Q1
All joint accounts of 2, 500,000 500,000
Janine Ash in Q2
TOTAL 4,000,000 1,000,000
REQUIREMENTS FOR CLAIMS

R.A 3591
(PHILIPPINE DEPOSIT INSURANCE
COPORATION)
 THINGS TO REMEMBER:
• Depositors with valid
deposit accounts with
balances of 100,000
and below are not
required to file claims.

Provided that they:

1. Have no obligations
with closed bank or
have not acted as co-
makers of this
obligations or not
spouses of the
borrowers.
2. Have complete mailing address found in the
ban records or have updated their addresses
through the mailing address update form.

3.Have not maintained the account under the

name of business entities.
 WHEN ARE CLAIMS FILED?
Claims are filed during the onsite claims
settlement operations(CSO) period, as
announced in the notice to depositors published
in national or local news.

Failed to file their claims during onsite CSO may

do the following:
 Personal filing
 Filing through mail
WHO ARE REQUIRED TO FILE DEPOSIT
INSURANCE CLAIMS?
Depositors with:
 Valid deposit accounts with balances of MORE
than 100,000.
 Outstanding obligations with the closed banks
either as borrower, co-maker or spouse of
depositor.
 Incomplete mailing address found in the bank
records.
Account maintain under the name of the business

Accounts not eligible for early payment, regardless

of type of account and account balance per advice
of PDIC.

Who are deceased whose filing of claim is thru the

legal heirs.
 WHAT ARE THOSE REQUIREMENTS IN
FILING CLAIMS?
1. Original evidence of deposits.
2. One valid original photo-bearing identification
document with clear signature of
depositor/claimants.
3. If below 18 years old:
 photocopy of birth certificate
 Valid ID of the parent
4.Original copy of notarized Special Power of
Attorney (SPA) for claimants who are not the
signatories in the ban records.in case of minor
depositor, the SPA must be executed by the parent.

5. Claim Form.

Reference: www.pdic.gov.ph
What are NOT covered by PDIC deposit
insurance ?
• Investment product such as bonds and securities,
trust accounts and other similar instruments
• Deposit account or transaction that:
• Are unfunded, fictitious or fraudulent
• Constitute and/or emanate from unsafe and unsound
banking practice 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 deposit account
transactions
• Are determined to be proceed of unlawful activity as defined
in the Anti-Money Laundering Act (RA 9160 as amended)