The Philippine Deposit Insurance Corporation (PDIC) announced that depositors who have valid savings and demand deposit accounts with balances of P15,000 and below will now be eligible for outright payment without the filing of deposit insurance claims. The PDIC had earlier waived the required claims filing for savings accounts with balances of P10,000 and below for banks closed beginning March 17, 2011. Raising the ceiling to P15,000 is expected to cover 75% of the total number of the account holders in a closed bank on the average.

Accounts are determined to be valid for outright payment through examination by the PDIC of bank records that such accounts are recorded in the books of the banks and are funded as evidenced by cashflows.

Under the new policy, only account holders with account balances greater than P15,000 and all depositors with term deposits (i.e., special savings and time deposits) are required to file deposit insurance claims.

Outright payment of valid deposit accounts with balances of up to P15,000 will likewise be coursed through the Philippine Postal Corporation via postal money order (PMO). The PMO scheme is the most expedient channel and cost-effective way of servicing the small depositors and may be encashed through the nearest Land Bank branch or the post office.

In 2010, PDIC pegged the initial maximum amount covered in the waiver of claims filing at P5,000. It was expanded to P10,000 in 2011. The latest policy move is part of PDIC’s objective to better serve the depositors through expeditious and prompt settlement of deposit insurance claims.

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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. Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.