PHILIPPINE DEPOSIT INSURANCE CORPORATION ACT

Special Laws

Coverage of PDIC

Coverage of PDIC

The deposit liabilities of any bank which is engaged in the business of receiving deposits shall be insured with the PDIC

Insured Deposits

any bona fide depositor for legit deposits in an insured bank, not exceeding 500k

Excluded Deposits

1. Deposits which resulted from splitting of deposit

2. Deposits by the head office of a foreign bank in its branch in the Phils. Because there is only one entity

3. Deposits determined to be the proceeds of an unlawful activity under AMLA

4. Deposits payable in a place outside the Philippines.

5. Deposit accounts which are truly unfunded and that are fictitious and fraudulent

6. Deposit accounts emanating from unsafe and unsound banking practices

Per Bank Policy

The entitlement to deposit insurance is on a per bank basis. For instance, if Yassi has a deposit account with BDO and MetroBank and both banks closed, Yassi is entitled to Php500,000.00 maximum insurance coverage for each bank.

Per Depositor, Per Capacity Rule

All deposits in the bank maintained in the same right and capacity for his benefit either in his own name or in the name of others shall be added together in determining the insured amount, and regardless of the type of account.

1. In a “By” account - (Julia by Gerald) – Julia is the depositor

2. In a “In Trust For” account - (Julia ITF Gerald) – Gerald is the Depositor

3. In a “For the Account” - (Julia FAO Gerald) – Gerald is the depositor

Rule on Joint Accounts

A joint account shall be insured separately from any individually owned deposit account.

The Php500,000.00 entitlement to joint deposits is separate from the Php500,000.00 applicable to individually owned accounts by the depositor, giving him a maximum of Php1,000,000.00 insurance coverage.

Procedure for PDIC

1. PDIC shall commence the determination of insured deposits of a closed bank upon its actual takeover of the closed bank.

2. PDIC shall give notice to the depositors by whatever means deemed appropriate.

3. Publication of notice.

PERIOD FOR FILING CLAIM

1. The depositor has 2 years from actual takeover of the closed bank, to file a claim before the PDIC.

2. The depositor has 2 years after the 2-year period to file a claim, to enforce a claim before the PDIC.

3. PDIC has 6 months from the filing of claim to settle the same.

If you file claim and after 6 months, pdic still hasnt done their job

PDIC agents will be held liable for gross negligence

EFFECTS OF NON-FILING

1. All rights of the depositor against the PDIC shall be barred.

2. All rights of the depositor against the closed bank and its shareholders to which PDIC may have become subrogated, shall revert to the depositor..

3. PDIC shall be discharged from all liability on insured deposit.

Splitting of Deposit*

occurs when:

1. a deposit account with outstanding balance of more than 500k is broken down and transferred to 2 or more accounts in the name of persons who have no beneficial ownership in the transferred deposits;

2. within 120 days immediately preceding or during a bank-declared holiday or immediately preceding a closure issued by the Monetary Board

3. for the purpose of availing the maximum deposit insurance coverage.