PDIC raises waived filing threshold for insurance claims to P500K

PDIC raises waived filing threshold for insurance claims to P500K
SunStar Business

The Philippine Deposit Insurance Corp. (PDIC) announced it has raised the threshold for waived filing of deposit insurance claims to P500,000 for valid accounts, subject to conditions set by the PDIC Board of Directors.

This is to ensure more responsive client service and promote public confidence in the stability of the Philippine banking system, the state-run agency said on Monday, July 1, 2024.

The unprecedented move will cover depositors, both individuals and registered entities, with account balances up to P500,000. These depositors won’t need to file deposit insurance claims if their addresses are complete in the closed banks’ records.

Eligible depositors will be automatically paid by the PDIC either through checks to be issued and delivered by the Philippine Postal Corp. (PHLPost) to their last registered addresses or updated addresses indicated in the PDIC’s Mailing Address Update Form, or through the issuance of the LandBank Visa Debit Cards.

Prior to expanding the threshold, waived filing of deposit insurance claims covered valid deposit accounts with outstanding balance of up to P100,000 of individual depositors only.

The expanded threshold for the waived filing of claims will be implemented starting with

the closed Rural Bank of Cuyo (Palawan) Inc., which the PDIC took over on June 10, 2024, following the issuance by the Monetary Board of the Bangko Sentral ng Pilipinas of a resolution ordering the closure of said closed bank.

Over the years, the PDIC has been increasing the threshold for the waived filing of deposit insurance claims for convenience and prompt reimbursement to closed bank depositors. Waived filing of deposit insurance claims started in 2009 when the PDIC Board of Directors approved the initial ceiling set at P5,000 which was later expanded to P10,000, P15,000 and P50,000 in 2011, 2012 and 2013, respectively, until the most recent threshold of P100,000 set in 2015.

The PDIC said it commits to promptly pay depositors of closed banks to give them immediate access to their deposits. / KOC

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