After reading this article about CLAIM FOR INSURED DEPOSIT, read also: EXCLUSIONS FROM DEPOSIT INSURANCE COVERAGE
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Insured deposits are to be paid when an insured bank has been closed
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Depositors with deposit accounts with balances of Php 100,000 and below may not be required to file claims
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The requirement to file claim on the insured deposits must be done within two (2) years from the PDIC’s take over of the closed bank
Money doesn’t change men. It merely unmasks them. – Henry Ford
When a bank has been ordered closed by the Bangko Sentral ng Pilipinas, what happens after? What about the hard-earned savings that were deposited by the public in the bank?
The law says:
Whenever an insured bank shall have been closed, or upon expiration or revocation of a bank’s corporate term, payment of the insured deposits on such closed bank shall be made by the Philippine Deposit Insurance (PDIC) as soon as possible.
The payment may be either by cash or by making available to each depositor a transferred deposit in another insured bank in an amount equal to insured deposit of such depositor.
Before payment, PDIC, as Deposit Insurer, may require proof of claims to be filed before paying the insured deposits. In case PDIC is not satisfied as to the validity of a claim for an insured deposit, it may require final determination of the court before paying such claim.
However, do note that depositors with valid deposit accounts with balances of Php100,000.00 and below are not required to file claims. This is on the condition that said depositors (1) have no obligations with the closed bank, or have not acted as co-makers of these obligations, or are not spouses of the borrowers; (2) have complete mailing address found in the bank records or have updated their addresses through the Mailing Address Update Form (MAUF).
On the other hand, depositors who are required to file deposit insurance claims are the following:
- Those with valid deposit accounts with balances of more than Php100,000.00;
- Those with outstanding obligations with the closed bank either as borrower, co-maker, or as spouse of borrower;
- Those with incomplete mailing address found in the bank records, or failed to update them through the MAUF issued by the PDIC;
- Those with accounts maintained under the name of business entities;
- Those with accounts not eligible for early payment, regardless of types of account and account balance per advice of PDIC; and
- Those who are deceased whose filing of claim is thru the legal heirs.
When are claims filed?
The law says:
The depositor shall file a claim on his insured deposits with the PDIC within two (2) years from actual takeover of the closed bank by the receiver. Otherwise, after the two-year period, the depositor’s right to claim for deposit insurance is barred.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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