Philippine Deposit Insurance Corporation
1. What is the purpose of PDIC law?
PDIC is created to insure the deposits of all banks. It shall promote and safeguard the
interest of the depositing public by providing insurance coverage on all insured deposits and
helping maintain a sound and stable banking system.
2. What are the main functions of PDIC?
Deposit insurer and liquidator of closed banks. *receiver and liquidator of banks, acts as
co-regulator of banks
3. What are the public policy objectives of PDIC?
PDIC was established to promote and safeguard the interests of the depositing public by
way of providing insurance coverage on all insured deposits. PDIC also aims to strengthen
the mandatory deposit insurance coverage system to generate, preserve, and maintain faith
and confidence in the country's banking system, and protect it from illegal schemes and
machinations.
4. Define:
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Deposit - unpaid balance of money or its equivalent received by a bank in the
usual course of business and for which it has given or is obliged to give credit
to a commercial, checking, savings, time or thrift account, or issued in
accordance with Bangko Sentral rules and regulations and other applicable
laws
Insured deposit - amount due to any bona fide depositor for legitimate
deposits in an insured bank net of any obligation of the depositor to the
insured bank as of date of closure, but not to exceed P500,000.00
5. What is the maximum deposit insurance coverage?
The maximum deposit insurance coverage is at P500,000.00 per depositor.
6. What is covered by PDIC deposit insurance?
PDIC covers only the risk of a bank closure ordered by the Monetary Board.
7. Definition of accounts
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Single accounts - are individually-owned accounts or accounts held under
one name, either as natural person or juridical entity
Joint account - is an account held jointly by two or more natural persons, or
by two or more juridical persons or entities
“By”, “ITF” or “FAO” accounts
In a “By” account (Juan by Pedro) - Juan is the depositor.
In an “In Trust For” account (Juan ITF Pedro) - Pedro is the depositor.
In a “For the Account of” account (Juan FAO Pedro) - Pedro is the depositor.
8. What are the rules in determining accounts covered?
Single Accounts
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In determining the
insured deposit of
single accounts, 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.
Total insured deposit
should not exceed
the
Maximum
Deposit
Insurance
Coverage
of
Php500,000.
Joint Accounts
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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.
If the account is held
by
a
juridical
person/entity jointly
with one or more
natural persons, the
maximum
insured
deposit
shall
be
presumed to belong
entirely
to
such
juridical
person/entity.
The total share 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.
”By”, “ITF”, “FAO” Accounts
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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.
9. What is compensation or set-off in relation to computing insured deposits?
The claim on the insured deposit shall be calculated net of any obligation of the depositor to
the bank but shall not exceed P500,000.
10. Requirements for Claims
● Who are required to file claims?
Depositors with:
● valid deposit accounts with balances of more than P100,000.00;
● outstanding obligations with the closed bank either as borrower, co-maker, or as
spouse of borrower;
● incomplete mailing address found in the bank records, or failed to update them
through the MAUF issued by the PDIC;
● accounts maintained under the name of business entities;
● 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 through the legal heirs.
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ORIGINAL EVIDENCE OF DEPOSITS such as savings passbook, certificate of time
deposit, bank statement, used or unused checks, or ATM card;
ONE (1) VALID ORIGINAL PHOTO-BEARING IDENTIFICATION DOCUMENT (ID)
with clear signature of depositor/claimant
For depositors below eighteen (18) years old, photocopy of birth certificate from the
Philippine Statistics Authority (PSA) or a duly certified copy issued by the local civil
registrar, and valid ID of the parent.
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 a minor depositor, the SPA
must be executed by the parent.
Claim Form
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What are the documents required in support of the claim?
Who should sign the Claim Form?
DEPOSITOR of the account - for depositor 18 years old and above
PARENT - of depositor below 18 years old
AGENT - in the case of “by” account
TRUSTEE - in the case of “In Trust for (ITF)” account
EACH DEPOSITOR/ACCOUNT HOLDER for account maintained as “Or”, “And/Or”
or “And” - in the case of joint accounts
AUTHORIZED REPRESENTATIVE/s - for business entities, deceased depositors
and person who has Special Power of Attorney (SPA) from the depositor.
11. What is 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:
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Investment products such as bonds and securities, trust accounts and other similar
instruments;
Deposit accounts or transactions that: are unfunded, fictitious or fraudulent,
constitute;
Deposit products constituting or emanating from unsafe and unsound banking
practices; and
Deposits that are determined to be proceeds of an unlawful activity as defined under
the Anti-Money Laundering Law.
Note: Bank losses due to theft, fire, closure by reason of strike or existence of public
disorder, revolution or civil war, are not covered by PDIC.