Philippine Deposit

Insurance
Corporation (PDIC)
R.A. 3591, as amended
Lohraine Daynne Dy
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Insures the deposits

of all banks which are
entitled to the benefits
of insurance under
this Act and which
“Corporation” shall have the powers
hereinafter granted.
“
The Corporation shall promote and
safeguard the interests of the depositing
public by providing insurance coverage on
all insured deposits and helping maintain a
sound and stable banking system. (Sec. 1)
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Deposit Insurance Coverage

The deposit liabilities of any bank which is

engaged in the business of receiving deposits or
which thereafter may engage in the business of
receiving deposits, shall be insured with the
Corporation. (Sec. 6)
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Deposit Insurance Coverage

Whenever a bank is determined by the BSP to be capital deficient,

the Corporation may conduct an insurance risk evaluation on the
bank to enable it to assess the risks to the DIF. Such evaluation
may include the determination of:

 the fair market value of the assets and liabilities of a bank; or

 the risk classification of a bank; or
 possible resolution modes under Section 11 of this Act, subject
to such terms and conditions as the PDIC Board may prescribe.
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The Philippine Deposit Insurance Corporation
(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 permanent and continuing deposit
insurance up to the maximum deposit insurance
coverage of P500,000.00, per depositor, per bank.
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Maximum Deposit Insurance Coverage (MDIC)

PDIC shall pay deposit insurance on all valid deposits up

to the Maximum Deposit Insurance Coverage of
Php500,000, per depositor, of a closed bank. Accounts
maintained in the same right and capacity for a
depositor’s benefit, whether in his own name or in the
name of others, are covered by deposit insurance.
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PDIC MEMBER BANKS

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PDIC MEMBER BANKS

▸ Banks incorporated under Philippine laws, such

as commercial banks, savings banks, mortgage
banks, development banks, rural banks and
cooperative banks and stock savings and loan
associations.

▸ Domestic branches of foreign banks

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What are covered by PDIC

deposit insurance?
Source: http://www.pdic.gov.ph/files/Deposit%20InsuranceBrochure_Final.pdf
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PDIC Deposit Insurance Coverage

PDIC insures valid deposits

in domestic offices of its
member banks.
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INSURED DEPOSITS

By Deposit Type: By Deposit Account:

▸ Savings ▸ Single Account
▸ Special Savings ▸ Joint Account
▸ Demand/ Checking ▸ Account “By”, “In
▸ Negotiable Order Trust For” (ITF) or
of Withdrawal “For the Account
(NOW) of” (FAO) another
person
▸ Certificate of Time
Deposits
 “BY”, “ITF” or “FAO” Accounts
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▸ In a “By” account,
Ana by Ben, Ana is the depositor.

▸ In an “In Trust For” (ITF) account,

Ana In Trust For Ben, Ben is the depositor.

▸ In a “For the Account of” (FAO) account,

Ana For the Account of Ben, Ben is the
depositor.
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Single Accounts
are individually-owned accounts or accounts held
under one name, either as natural person or juridical
entity.

Natural Person refers to any individual person. Single

proprietors are considered natural persons.

Juridical entity refers to a corporation, partnership or

cooperative.
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Joint Accounts
are accounts held under more than one name.

▸ A joint account regardless of whether the conjunction

“and”, “or” or “and/or” is used shall be insured separately
from single accounts.

▸ Unless a different sharing is stipulated in the deposit

documents, the insured amount up to the Maximum
Deposit Insurance Coverage of Php500,000 shall be
divided equally between or among co-owners of a joint
account.
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Joint Accounts
are accounts held under more than one name.

▸ The total shares of a co-owner in several joint accounts

may exceed Php500,000 but will only be insured up to the
Maximum Deposit Insurance Coverage of Php500,000.

▸ Joint accounts held in the names of a juridical entity and

a natural person shall be presumed to belong solely to
the juridical entity.
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To simplify:

In the case where a depositor is the sole beneficial

owner of a single, “For the Account of”, “By”, and “In
Trust For” accounts, the consolidated balances of
these accounts shall be insured up to Php500,000.
The depositor’s total shares in his/her joint accounts
shall be separately insured up to Php500,000. A
depositor with single accounts and joint accounts
may have insured deposits of up to Php1,000,000.
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INSURED DEPOSITS

By Deposit Type: By Deposit Account: By Currency:

▸ Savings ▸ Single Account ▸ Philippine peso
▸ Special Savings ▸ Joint Account ▸ Foreign currencies
▸ Demand/ Checking ▸ Account “By”, considered as part
of BSP’s
▸ Negotiable Order “In Trust For” (ITF)
international
of Withdrawal or “For the
reserves
(NOW) Account of” (FAO)
▸ Certificate of Time another person
Deposits
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What are NOT covered by

PDIC deposit insurance?
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NOT covered by PDIC

• Investment products such as bonds and

securities, trust accounts and other similar
instruments.
• Deposit accounts or transactions that:

 Are unfunded, fictitious or fraudulent

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NOT covered by PDIC

• Deposit accounts or transactions that:
 Constitute and/or emanate from unsafe and unsound
banking practices after due notice and hearing and
publication of PDIC’s cease & desist order against such
deposit accounts/transactions
 Are determined to be proceeds of an unlawful activity as
defined in the Anti-Money Laundering Act (Republic Act
9160, as amended)
Who are required to
file claims?
Source: http://www.pdic.gov.ph/files/Filing_Claims_for_Deposit_Insurance.pdf
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Required to File Claims

Depositors:

▸ With valid deposit accounts with balances of more than

P100,000.00;

▸ With outstanding obligations with the closed bank either as

borrower, co-maker, or as spouse of borrower;

▸ With incomplete mailing address found in the bank records, or

failed to update them through the MAUF issued by the PDIC;
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Required to File Claims

Depositors:

▸ With accounts maintained under the name of business

entities;

▸ With accounts not eligible for early payment, regardless of type

of account and account balance per advice of PDIC; and

▸ Who are deceased whose filing of claim is thru the legal heirs.
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NOT Required to File Claims

Depositors with valid deposit accounts with

balances of Php100,000 and below are not
required to file claims provided they have no
obligations with the closed bank and have
complete and updated addresses in the bank
records or have updated these through the
Mailing Address Update Form (MAUF) issued
by the PDIC.
Requirements in filing
claims?
Source: http://www.pdic.gov.ph/files/Filing_Claims_for_Deposit_Insurance.pdf
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Requirements in Filing Claims

1) Original Evidence Of Deposits such as savings passbook, certificate

of time deposit, bank statement, used or unused checks, or ATM card.
2) ONE (1) VALID ORIGINAL PHOTO-BEARING ID with clear signature
of depositor/claimant
3) Photocopy Of Birth Certificate and valid ID of the parent for
depositors below 18 yrs. old.
4) Original copy of a notarized SPA for claimants who are not the
signatories in the bank records.
5) Claim Form
Who Should Sign the
Claim Form?
Source: http://www.pdic.gov.ph/files/Filing_Claims_for_Deposit_Insurance.pdf
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Law on Secrecy of
Bank Deposits
R.A. 1405
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Section 1

It is hereby declared to be the policy of the

Government to give encouragement to the people to
deposit their money in banking institutions and to
discourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist
in the economic development of the country.
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Section 2
General Rule: Deposits of whatever nature with banks or
banking institutions in the Philippines are
confidential in nature and may not be examined,
inquired or looked into by any person, government
official, bureau or office.
Exception: written permission of the depositor, or in cases
of impeachment, or upon order of a competent court
in cases of bribery or dereliction of duty of public
officials, or in cases where the money deposited or
invested is the subject matter of the litigation.
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Section 3

It shall be unlawful for any official or

employee of a banking institution to
disclose to any person other than those
mentioned in Section two hereof any
information concerning said deposits.
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Section 4

All Acts or parts of Acts, Special Charters,

Executive Orders, Rules and Regulations
which are inconsistent with the provisions
of this Act are hereby repealed.
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Section 5

Any violation of this law will subject

offender upon conviction, to an
imprisonment of not more than five years or
a fine of not more than twenty thousand
pesos or both, in the discretion of the court.
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Penalties

Violation of Republic Act No. 1405 will subject the

offender, upon conviction, to the following
penalties:

(i) imprisonment of not more than five years;

(ii) fine of not more than P20,000.00; or
(iii) both imprisonment and fine (Sec. 5)
Unclaimed Balances
Law
Presidential Decree No. 679
I am an OFW, employed as a caregiver for
about eight years now. Before I left for abroad,
I opened an account with a certain bank in the
Philippines where I deposited a significant
amount of money as my inheritance from my
previous employer. Up to this date, I have not
updated my account. What will be the status
of my account since it has been inactive for
more than eight years?
 Unclaimed Balances

Includes:
▸ Credits or deposits of money
▸ Bullion
▸ Security or other evidence of indebtedness of any
kind
▸ Interest thereon with banks, buildings, and loan
association, and trust corporation
 Unclaimed Balances

In favor of:
▸ Any person known to be dead
▸ Who has not made any further deposits or
withdrawals during the preceding 10 years or more
 Unclaimed Balances

Such unclaimed balances, together with the

increase and proceeds thereof, shall be
deposited with the Treasurer of the Philippines
to the credit of the Government of the
Republic of the Philippines to be used as the
National may Assembly direct.
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Unclaimed Balances

Submit a sworn statement of The Treasurer informs the

a list of all unclaimed Solicitor General of unclaimed
balances to the Treasurer of balances held by banks,
the Philippines January of building and loan associations
every odd year. and trust corporations.

Command the bank, building The Solicitor General shall

and loan association or trust commence an action declaring
corporation to forthwith that the unclaimed balances
deposit the same with the be escheated in favor of the
Treasurer of the Philippines. government.
The End