Philippine Prudential airs side on issues raised against it by claimants

We write to you again in response to Mr. Satur C. Ocampo’s most recent op-ed column article: “Positive Turns For Pryce Phl Prudential Planholders” which was published in your issue last Saturday, 29 March 2014. This latest article is apparently a follow-up to Mr. Ocampo’s two previous articles last August 2013 on the same subject, to which our reply was published in The Philippine STAR shortly thereafter. Once more, in light of the various issues raised in last Saturday’s article, Philippine Prudential Life Insurance Company, Inc. (Philippine Prudential) is issuing this explanation and clarification.

First of all, the 141 customer-complainants referred to by Mr. Ocampo represent only themselves and NOT the entire 4,000 original Family First Future Provider Planholders of Pre-Need Company Berkley Plans, Inc., which purchased the Protector Plan (also known by Planholders as PNCB). The PNCB is a very affordable Group Term Life Insurance protection which came with five riders: Accidental Death Benefit, Permanent Disability Benefit, Hospital Income Benefit, Burial Benefit and No Claim Bonus. The “No Claim Bonus Rider” entailed no additional cost to the client.

To recall, all of these Planholders who enrolled in the PNCB were covered under a Group Master Policy issued by Berkley Plans’ sister-company, former life insurance company Berkley International Life Insurance Company, Inc. (Berkley International Life). In 2007, Philippine Prudential assumed the rights, interest and obligations of Berkley International Life as the insurer under the same Group Master Policy. Pursuant to law, Berkley International Life’s obligations were assumed by Philippine Prudential in view of the surrender of Berkley International Life’s license as an insurance company and its exit in doing business in the Philippines.

As stated in our previous response, the Termination of Coverage, effective 25 March 2013, is legally valid under the strict terms of the Group Master Policy Insurance Contract. The PNCB’s sustainability was due to its maintaining a sufficient number of individuals covered under its Group Life Insurance Coverage. The Group Master Policy had expressly provided for a minimum participation requirement of all eligible Family First Future Provider Planholders. Unfortunately, the minimum 75% participation requirement was not met, making the coverage no longer sustainable. Thus, Philippine Prudential exercised its rights granted under the said Group Master Policy to terminate its coverage with the Pre-Need provider, which is the actual Policyholder, Philippine Prudential had repeatedly assured all Concerned Planholders that their periodic premium payments did not go to waste since they were fully covered under the Protector Plan or PNCB during the entire time it was in force. Since no premiums were collected for the “No Claim Bonus Rider,” the Company remains under no obligation to maintain the coverage.

Despite all these, and as a gesture of goodwill, Philippine Prudential had offered to refund to these Planholders a substantial portion of the premiums paid by them. While a majority of the PNCB Clients who have responded to our announcement had accepted our “Goodwill Offer,” the 141 Claimants cited by Mr. Ocampo still insist on a full or 100% refund of their premiums.

These Claimants have subsequently filed with the Insurance Commission action against Philippine Prudential late last year. Having availed of this course of action under the law, they must also abide by the demands of due process, which provides for the right of both sides to be heard, while affording fair and equal treatment before an independent and impartial adjudicator.

We believe that by bringing their case to Finance Secretary Cesar Purisima, hoping to influence the outcome of the case, they are undermining the right of Philippine Prudential (which they accuse of wrongdoing) to due process in the disposition of the case that they had filed.

As always, Philippine Prudential continues to assure all of its regular Policyowners, and the public in general, that the Company remains stable and financially capable of meeting all of its obligations as a reputable and duly-licensed Life Insurance Company by the Insurance Commission. It is most unfortunate that Mr. Ocampo continues to place our Company in the same category as those with serious reputation issues.

Again, we wish to reiterate and emphasize that, contrary to the claims of the Customer- Complainants cited in Mr. Ocampo’s column, our Company did not unjustly or “prematurely terminate” our coverage. We thus hope once more that our side of this story, through this letter, be afforded an equal opportunity to be published.

Our Clients and other concerned parties may, therefore, continue to contact the Philippine Prudential Customer Service Hotline at (02) 9022300 or Email: [email protected] for further inquiries. — Rodolfo C. Estrera, Head Corporate Communication Office Philippine Prudential Life Insurance Co., Inc.