Summary Law
Summary Law
Claims are filed during the claims settlement operations period, as announced in
the Notice to Depositors published in national or local newspapers
Depositors have two (2) years from PDIC’s takeover of the closed bank to file
their deposit insurance claims.
Q. Withholding of Payment
PDIC may withhold a portion of the payment of the insured deposit of any
depositor in a closed bank to provide for the payment of
Liability of the depositor as a stockholder of the closed bank; or
Liability of such depositor to the closed bank or its receiver, which is not
offset against a claim due from such bank, pending the determination and
payment of such liability by such depositor or any other liable therefor.
Failure of PDIC to settle the claim within 6 months from the date of filing of
claim for insured deposits, and such failure was due to grave abuse of
discretion, gross negligence, bad faith, or malice.
It will subject the directors, officers or employees of the Corporation
responsible for the delay, to imprisonment from six (6) months to one (1)
year.
The period shall not apply if validity of the claim requires the resolution of issues
of facts and or law by another office, body or agency.
all rights of the depositor against PDIC with respect to the insured deposit
shall be barred
all rights of the depositor against the closed bank and its shareholders or
the receivership estate to which PDIC may have become subrogated,
shall thereupon revert to the depositor
PDIC shall be discharged from any liability on the insured deposit.
OTHER NOTES:
What are not covered by PDIC deposit insurance?
Republic Act No. 9576 stipulates that PDIC will not pay deposit insurance for the
following accounts or transactions:
Investment products such as bonds and securities, trust accounts and other
similar instruments
Deposit accounts which are unfunded, fictitious or fraudulent.
Deposit products constituting or emanating from unsafe and unsound banking
practices.
Deposits that are determined to be proceeds of an unlawful activity as defined
under the Anti-Money Laundering Law
What are considered unsafe and unsound banking practices?
No. The insurance premium is paid by the banks, not by the depositors.
3. PDIC will not pay any deposit insurance for the following accounts and
transactions except
a. Bonds and securities
b. Deposits accounts which are fictitious
c. Deposits that are proceeds from illegal activities
d. Individually owned accounts held under one name
4. The following are the effects when the depositor fails to claim his deposit
insurance from PDIC within two years except
a. All rights of the depositor against PDIC with respect to the insured
deposit shall be barred
b. All rights of the depositor against the closed bank and its shareholders
or the receivership estate to which PDIC may have become
subrogated, shall thereupon revert to the depositor
c. PDIC is still liable on the insured deposit.
d. All of the above are the effects when the depositor fails to claim his
deposit insurance within two years.
Identification
1. Pepe is currently residing in Spain. Back in the Philippines, he has a deposit of
P500,000 in Bagumbayan Bank, which unfortunately closed. Since he cannot go to the
Philippines due to his busy schedule to file a deposit insurance claim, what remedy can
Pepe do?
In the case where a depositor is unable to file his claim personally because he
was living abroad, a representative may file on his behalf by presenting a Special
Power of Attorney (SPA), duly authenticated by the Philippine Consulate nearest
his residence.
2. Melchora a.k.a Ninoy Aquino has a P500,000 in Katipunan Bank. In the event of
closure of Katipunan bank, she shall file her claim within:
Two (2) years from PDIC’s takeover of the closed bank
3. Who shall sign the deposit insurance claim in the case of joint accounts such as “Or”,
“And/Or” or “And” accounts?
Each depositor of the joint account
5. Can PDIC withhold a portion of the payment of the insured deposit of any depositor in
a closed bank?
Yes, PDIC can withhold a portion of the payment of the insured deposit of
any depositor in a closed bank as a payment for the liability of the
depositor as a stockholder of the closed bank or the liability of such
depositor to the closed bank or its receiver, which is not offset against a
claim due from such bank, pending the determination and payment of
such liability by such depositor or any other liable therefor.