Pdic Law

PDIC LAW
INSURABLE DEPOSITS
MAXIMUM LIABILITY
REQUIREMENTS OF CLAIMS
(REPUBLIC ACT NO. 3591, as amended) AN
ACT ESTABLISHING THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION,
DEFINING ITS POWERS AND DUTIES AND
FOR OTHER PURPOSES
(June 2 1963)
REPUBLIC ACT NO. 9576
AN ACT INCREASING THE MAXIMUM DEPOSIT
INSURANCE COVERAGE, AND IN CONNECTION
THEREWITH, TO STRENGTHEN THE REGULATORY AND
ADMINISTRATIVE AUTHORITY, AND FINANCIAL
CAPABILITY OF THE PHILIPPINE DEPOSIT INSURANCE
CORPORATION (PDIC), AMENDING FOR THIS PURPOSE
REPUBLIC ACT NUMBERED THREE THOUSAND FIVE
HUNDRED NINETY-ONE, AS AMENDED, OTHERWISE
KNOWN AS THE PDIC CHARTER, AND FOR OTHER
PURPOSES
Date of Effectivity: June 1, 2009
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 depositors benefit, whether in his own
name or in the name of others, are covered by deposit
insurance.
Deposits are considered valid upon the determination by the
PDIC, based on bank records, that the deposits were made
with a corresponding inflow of cash.
PDIC Member Banks
PDIC member banks include the following institutions

authorized by the Bangko Sentral ng Pilipinas (BSP) to
perform banking functions in the Philippines:
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
What are covered by PDIC deposit
insurance?
PDIC insures valid deposits in domestic offices of its
member banks.
By Deposit Type: By Deposit Account:
Savings Single Account
Special Savings Joint Account
Account By, In Trust For (ITF) or
Demand/ Checking
For the Account of (FAO) another
Negotiable Order of Withdrawal
person
(NOW)
Certificate of Time Deposits
By Currency:
Philippine peso
Foreign currencies considered as
part
of BSPs international reserves
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.
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.
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.
BY, ITF or FAO Accounts
In a By account, A by B, A is the depositor.
In an In Trust For (ITF) account, A In Trust For B, B is

the depositor.
In a For the Account of (FAO) account, A For the

Account of B, B is the depositor.
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 depositors 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.
For purposes of computing the insured deposits, all

obligations or loans of the depositor with the closed bank, as
of bank closure, shall be deducted from the depositors total
deposits with the said bank. (PDIC Regulatory Issuance No.
2011-04)
How much is As insured deposit if she has the
following four deposit accounts in the same bank?
Account Name Deposit Insured Deposit
(in Php) of A
A 100,000 100,000
B For the Account of A 100,000 100,000
C In Trust For A 100,000 100,000
As Store (Sole Proprietor) 700,000 200,000
Total 1,000,000 500,000
How much is As insured deposit if she has the
following three joint accounts in the same bank?
(in Php) of A
A or B 500,000 250,000
A and C 1,000,000 250,000
A and/or D 1,000,000 *
Total 2,500,000 500,000
*A does not have any insured deposit share since she already has P500,000
in total shares in the two joint accounts A has with B and C.
How much is As insured deposit for all her
single and joint accounts in the same bank?
(in Php) of A
All single accounts of A in Q1 1,000,000 500,000

All joint accounts of A in Q2 2,500,000 500,000
Total 3,500,000 1,000,000
What are NOT covered by PDIC deposit
insurance?
The following, whether denominated, documented,
recorded or booked as deposit by the bank, are excluded
from PDIC deposit insurance (Section 4 (f) of the PDIC
Charter):
Investment products such as bonds and securities, trust
accounts and other similar instruments
What are NOT covered by PDIC deposit
insurance?
Deposit accounts or transactions that:
-- Are unfunded, fictitious or fraudulent
-- Constitute and/or emanate from unsafe and unsound banking
practice/s as determined by the PDIC, in consultation with the BSP,
after due notice and hearing and publication of PDICs 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)
Unsafe and unsound deposit-related activities include,
among others: (PDIC Regulatory Issuance No. 2011-01)
-- Deposit-related practice/activity/transaction without
the approval or adequate controls required under
existing laws, rules and regulations
-- Failure to keep bank records within bank premises
-- Granting high interest rates, when bank has: (i)
negative unimpaired capital, or (ii) liquid assets to
deposit ratio less than 10%
-- Non-compliance with PDIC regulations
HOW TO FILE CLAIM FOR DEPOSIT INSURANCE
1. WHEN ARE CLAIMS FILED?

2. WHO ARE REQUIRED TO FILE DEPOSIT INSURANCE
CLAIMS?
3. WHAT ARE THE STEPS IN FILING CLAIMS?
4. WHO SHOULD SIGN THE CLAIM FORM?
DEPOSITORS NOT REQUIRED TO FILE DEPOSIT
INSURANCE 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. Depositors with deposit balances of Php100,000 and below may update
their addresses using the MAUF and submit to PDIC representatives stationed at
the closed bank premises before the start of the onsite claims settlement
operations.
These depositors are entitled to immediate/early payment of deposit insurance

claim as part of PDICs initiative to provide convenience to small depositors.
Payments to these depositors are sent as postal money orders to the
depositors mailing addresses.
1. WHEN ARE CLAIMS FILED?
Claims are filed during the claims settlement operations

period, as announced in the Notice to Depositors
published in national or local newspapers, or posted in
the bank premises and conspicuous places within the
locality, and in the PDIC website.
Depositors have two (2) years from PDICs takeover of the

closed bank to file their deposit insurance claims.
2. WHO ARE REQUIRED TO FILE DEPOSIT
INSURANCE CLAIMS?
Depositors with valid deposit accounts with balances of more than
Php100,000.
Depositors who have outstanding obligations with the closed bank regardless
of amount of deposits.
Depositors with account balances of less than Php100,000 who have no
updated addresses in the bank records or who have not updated their
addresses through the Mailing Address Update Form (MAUF) issued by the
PDIC.
Depositors who maintain their accounts under the name of business entities,
regardless of type of account and account balance.
Depositors with accounts not eligible for early payment, regardless of type of
account and account balance per advice of PDIC.
Documentary Requirements:
1. Original evidence of deposits such as savings passbook, certificate

of time deposit, bank statement, unused checks, and ATM card.
2. Original copy of TWO (2) VALID PHOTO-BEARING IDENTIFICATION
DOCUMENTS (IDs) with clear signature of depositor/claimant such
as Drivers License, SSS/ GSIS ID, Senior Citizens ID, Passport, PRC ID,
OWWA/ OFW ID, Seamans ID, Alien Certification of Registration ID,
Voters ID, IBP. Please ensure that the ID number is clear and legible.
Documentary Requirements:
3. If the depositor is below 18 years old, a photocopy of his/her

birth certificate from the National Statistics Office (NSO) or duly
certified copy from the local civil registrar and valid IDs of the
parent.
4. Original copy of a notarized Special Power of Attorney (SPA)
for claimants who are not the signatories in the bank records. In
the case of minor depositor, the SPA must be executed by the
parent.
If filing Personally
The PDIC representatives at the premises of the closed bank
during Claims Settlement Operations (CSO) or to the PDIC Public
Assistance Center at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue
corner V.A. Rufino Street, Makati City after the onsite CSO.
If filing through Mail

Send the accomplished and notarized Claim Form and
requirements to:
The Claims Processing Department
Philippine Deposit Insurance Corporation
4/F SSS Building, 6782 Ayala Avenue corner
V.A. Rufino Street, 1226 Makati City
4. WHO SHOULD SIGN THE CLAIM FORM?
DEPOSITOR of the account
- for depositors 18 years old and above
PARENT
- if the depositor is below 18 years old
AGENT
- in the case of By accounts
TRUSTEE
- in the case of In Trust For (ITF) accounts
EACH DEPOSITOR
- in the case of joint accounts such as Or, And/Or or And accounts
If a depositor is unable to file his claim personally, a representative may file on his
behalf by presenting a duly notarized (SPA,) or in the case of a depositor residing
abroad, an SPA duly authenticated by the Philippine Consulate nearest his/her
residence.

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PDIC LAW

PDIC member banks include the following institutions

Natural Person refers to any individual person. Single

Joint accounts held in the names of a juridical entity and

In a By account, A by B, A is the depositor.

In an In Trust For (ITF) account, A In Trust For B, B is

In a For the Account of (FAO) account, A For the

The depositors total shares in his/her joint accounts shall be

For purposes of computing the insured deposits, all

All single accounts of A in Q1 1,000,000 500,000

1. WHEN ARE CLAIMS FILED?

These depositors are entitled to immediate/early payment of deposit insurance

Claims are filed during the claims settlement operations

Depositors have two (2) years from PDICs takeover of the

1. Original evidence of deposits such as savings passbook, certificate

3. If the depositor is below 18 years old, a photocopy of his/her

If filing through Mail

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