PDIC pays out P124 million in deposit insurance in 2020

CEBU, Philippines — State insurer Philippine Deposit Insurance Corporation (PDIC) released a total of P124.11 million worth of deposit insurance claims in 2020.

In its latest report, PDIC said that payments represented claims for 7,072 valid deposit accounts maintained in five banks ordered closed in 2020, or 76 percent of the estimated total deposit accounts of 9,305.

The PDIC further said that total payments accounted for about 60 percent of the total estimated insured deposits of P208.07 million in these five closed banks.

The Monetary Board of the Bangko Sentral ng Pilipinas ordered closed five banks from January to December 2020, namely, Providence Rural Bank, Inc.; Rural Bank of Tibiao (Antique), Inc.; De La O Rural Bank, Inc.; San Fernando Rural Bank, Inc.; and Cooperative Bank of Aurora. As provided for by the PDIC Charter (Republic Act No. 3591, as amended), depositors of closed banks have two years to file their deposit insurance claims reckoned from PDIC’s bank takeover.

These five banks are now under liquidation by the PDIC.

The state deposit insurer pays insured depositors in various modes including direct mail of postal money orders to depositors with valid deposits amounting to P100,000 and below; and check payments for valid claims above P100,000.

In strict observance of health protocols and for convenience of depositors during the pandemic, the PDIC introduced the electronic filing of deposit insurance claims through email; and transfer deposit and cash over the counter schemes as additional payment modes in coordination with Land Bank of the Philippines.

“It is important for PDIC to sustain the trust of the depositing public through adequate and timely delivery of deposit insurance payments to closed banks’ depositors. Despite the pandemic and the community quarantines imposed across the country, we continue to deliver critical frontline services by maximizing the use of technology and other channels to provide much needed assistance to stakeholders,” PDIC President Roberto B. Tan said.

The PDIC also noted that despite the operational changes it implemented in response to the ongoing health crisis, depositors and other clients showed patience and understanding.

Furthermore, officers and employees of banks that were closed readily cooperated with and even provided support to PDIC field personnel in performing their tasks. These all contributed to the timely settlement of deposit insurance claims once the strict quarantine status in Metro Manila and other regions and provinces were eased by the National Government.

Meanwhile, the PDIC announced that it continues to accept deposit insurance claims from depositors via e-mail, postal mail and courier service. Personal filing at its Public Assistance Center in Makati City is on appointment basis only to be able to strictly observe health and safety protocols.

PDIC was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.