6 - PDIC Flashcards
What does RA No. 3591 pertain to?
It relates to the Philippine Deposit Insurance Corporation Act, which establishes a deposit insurance system in the Philippines.
What is the state policy of the Philippine Deposit Insurance Corporation (PDIC)?
The policy aims to:
a. Strengthen the mandatory deposit insurance coverage system
b. Generate, preserve, and maintain public confidence in the banking system
c. Protect against illegal schemes and machinations
What is the Philippine Deposit Insurance Corporation (PDIC)?
The PDIC is a government instrumentality created in 1963 by R.A. No. 3591, as amended by R.A. No. 10846, to insure deposits of all banks.
What are the main functions of the PDIC?
- Deposit insurer – Provides insurance coverage on all insured deposits.
- Co-regulator of banks – Empowers PDIC to examine and investigate banks.
- Receiver and Liquidator of closed banks – Controls and manages the affairs of closed banks.
What constitutes insured deposits under the PDIC?
Insured deposits are the amount due to any bona fide depositor for legitimate deposits in an insured bank, net of any obligations of the depositor to the bank, with a maximum coverage of ₱500,000.
What is the maximum insurance coverage amount provided by the PDIC?
The maximum insurance coverage is ₱500,000.
Under what conditions are deposits insured by the PDIC?
Deposits are insured in the event of a bank closure ordered by the Monetary Board or the Bangko Sentral ng Pilipinas (BSP).
How is the entitlement to deposit insurance determined?
The entitlement is determined on a per bank basis.
What is the “Per Depositor or Per Capacity Rule”?
All deposits maintained in the same right or capacity for a depositor’s benefit, whether in their name or the name of others, are aggregated to determine the insured amount.
How are accounts categorized under the PDIC rules?
The descriptions for the types of accounts are as follows:
a. Accounts “By” (e.g., “Juan by Pedro”) – The depositor is Juan.
b. Accounts “In Trust For” (e.g., “Juan ITF Pedro”) – The depositor is Pedro.
c. Accounts “For the Account Of” (e.g., “Juan FAO Pedro”) – The depositor is Pedro.
Are individual accounts covered independently by the PDIC?
Yes, all individual accounts where ownership is vested in the depositor are insured up to a maximum of ₱500,000.
How are joint accounts treated under the PDIC?
Joint accounts are insured separately from individually owned deposit accounts. The maximum insured deposit is divided among all account holders unless otherwise specified.
What happens to the insurance coverage if a joint account is held with a natural person and a juridical entity?
The maximum insured deposit will be presumed to belong entirely to the juridical person or entity.
Who is exempt from filing claims for deposits under ₱100,000?
Depositors with balances of ₱100,000 and below do not need to file a claim if they have no obligations with the closed bank and have a complete and updated mailing address in bank records.
What happens to depositors with balances above ₱100,000?
They are required to file deposit insurance claims to receive their insurance coverage.
Who is required to file for deposit insurance claims?
The following are the categories of depositors:
a. Depositors with balances over ₱100,000.
b. Depositors with outstanding obligations with the closed bank.
c. Depositors with incomplete mailing addresses.
d. Depositors with accounts under business names.
e. Depositors who are deceased, with claims to be filed by their legal heirs.
What are the requirements to file a claim with PDIC?
The following documents are required for filing a claim:
a. Original evidence of deposits (e.g., passbook).
b. One valid original photo-bearing ID with clear signature.
c. For depositors below 18 years: Birth certificate and valid ID of a parent.
d. Original notarized Special Power of Attorney (SPA) if not a signatory.
e. Completed claim form.
What time frame do depositors have to file a claim?
Depositors have 2 years from the actual takeover of the closed bank to file a claim.
How long do depositors have to enforce their claims after filing?
Depositors have an additional 2 years after the initial 2-year filing period to enforce their claims.
What is the period within which the PDIC must settle a claim?
The PDIC must settle the claim within 6 months from the date of filing.
What conditions must be met for depositors with balances above ₱100,000 to file a claim?
They must have valid deposit accounts, have updated mailing addresses, and comply with any obligations with the closed bank.
How does the PDIC ensure that depositors are properly compensated?
The PDIC processes claims based on valid account records and adherence to the rules stated in the PDIC law.
What is the procedure for claiming deposit insurance after a bank closure?
The process for filing a claim involves the following steps:
a. Ensure eligibility by meeting the criteria set by the PDIC.
b. Prepare the required documents as specified.
c. File the claim with the PDIC.
d. Await the processing of the claim within the stipulated time frame.
Are business entity accounts eligible for the same treatment as personal accounts under the PDIC?
No, accounts maintained in the name of business entities are subject to different rules and typically require filing a claim to access insurance.
What is the purpose of the Mailing Address Update Form (MAUF)?
The MAUF allows depositors to update their mailing addresses to ensure they receive communications regarding claims.
What happens if depositors fail to file claims within the specified period?
If depositors fail to file claims within the 2-year period after the bank closure, they may lose their rights to insurance coverage.
How does the PDIC handle claims for deceased depositors?
Claims for deceased depositors must be filed through their legal heirs, following the same requirements set for regular claims.
Can depositors check their eligibility for insurance coverage before a bank closure occurs?
Yes, depositors can check their eligibility and coverage amounts using PDIC resources or by asking their banks for information.
What types of accounts may require additional scrutiny from PDIC during claims?
Accounts with outstanding obligations, those maintained under business entities, or those with incomplete documentation may require more scrutiny.
Is there a limit to the number of claims an individual can file under different accounts?
Yes, each claim is subject to the ₱500,000 maximum insurance coverage per bank; subsequent claims would depend on separate bank accounts.
