PNB’s innovative insurance product helps Pinoys deal with rising ATM theft

MANILA, Philippines - What do you do if you become a victim of holdup right after withdrawing money from an automated teller machine (ATM)? 

For Ernie Santos, such an experience was so traumatic because the money taken from him was supposed to pay for the tuition fee of his son. 

 â€œI couldn’t speak to my wife who is working abroad because I am ashamed of what happened,” he recalled. “I told her I was just having some minor problems in enrolling our son, but the truth was I was still trying to borrow money from friends.” 

Fortunately, Ernie was enrolled by his bank – the Philippine National Bank – to a new product that insures him against ATM theft. Days after the holdup, the bank called him up to inform him about his insurance and Ernie couldn’t be happier to be reimbursed of the money he lost. Excited, he finally called his wife to tell her the truth. 

The insurance that saved the day for Ernie is called ATMSafe. It is an innovative product that provides protection for ATM cardholders in case of robbery, replacing stolen cash up to a maximum of P50,000 and providing hospitalization benefits if the victim is injured. In case of death, the victim is insured for P112,500. 

First in the country

Joven B. Hernandez, PNB executive vice president for Retail Banking, said ATMSafe is the first insurance product in the country that offers protection to ATM card holders.

“PNB is the pioneer in providing security to our ATM card holders,” he said. “We introduced ATMSafe to address the need for protection of our customers at this time when incidents of ATM robbery are rising at an alarming rate.”

According to Hernandez, ATMSafe is a product invented in the United States and adapted in the Philippines by PNB and its sister company, Allied Bankers Insurance, as the insurance provider.  Through the use of a “master policy,” PNB is able to insure its cardholders for a measly P11 per month. At present, PNB already paid at least a dozen claimants. 

“It’s really a very useful product,” Hernandez said. “This is the reason why many of our cardholders are already renewing their coverage on their own even without us prodding them. This is because they have realized how important ATMSafe is.” 

First in the world

In so short a time, ATMSafe has already evolved with the Philippine market. Its latest innovation is in the way it is now being sold – through the ATMs themselves. 

“We are the first to use the ATM as a point-of-sale, making it very easy for the customer to get insured,” said Hernandez, his voice full of excitement. 

Emmanuel Tuazon, PNB’s senior vice president for Marketing, said in the beginning ATMSafe was sold over the counter. “Our customers used to sign an agreement that they would remain insured until the time they change their mind,” he remembers.   

But Tuazon said Filipinos apparently do not like such way of buying. “We have a penchant for “tingi” or small items in sachets. So we thought of offering ATMSafe on a monthly basis at a very affordable price of P11. It was our way of adapting the product to the market’s demands,” he said. 

Now, PNB customers simply press the “Yes” button whenever the ATM asks them if they want to be insured or not. The back of their transaction slip serves as their policy. 

But Tuazon said customers do not have to present the “policy” in an event of a claim.  

“As much as possible, we want to make claims payment as hassle-free and as easy as possible. Becoming a victim of a holdup is stressful enough. We don’t want to subject our customers to more stress. That’s why we assist them in their documentary requirements such as getting a police report. We settle claims within 24 hours. Matagal na yung three days,” he said. 

Market’s acceptance

Tuazon said the market has apparently accepted ATMSafe, given the one million enrollees they already have as of press time. And he noted that this number is fast growing especially now that ATM thieves are also becoming more innovative in their modus operandi. 

“Our sales peaked after news came out that an ATM skimming syndicate has been discovered in Iloilo City. Obviously, the market already knows how important ATMSafe is. Cardholders have realized their vulnerability,” he said. 

Tuazon added that holdup men are no longer satisfied with the cash they can get from their victims’ wallets. There have been cases, he said, where the criminals took all passengers of an FX taxi to an ATM to force them to withdraw money at gunpoint. 

“They checked the balance first before forcing the poor victims to withdraw everything from the account,” said Tuazon.  “Our message is simple: Why risk your life? With ATMSafe, you can let the thieves run with your money because you are assured that we are behind you,” he stressed.