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July 14, 2024

PDIC hastens insurance claim settlement, trims non-cash portfolio

State-run Philippine Deposit Insurance Corp. (PDIC) significantly cut its clearing time in settling a total of 19,184 deposit insurance claims and in resolving over 30,000 loan accounts in closed banks through the use of digital platforms last year.

PDIC president and CEO Roberto Tan said in a report to Finance Secretary and PDIC Board Chairman Carlos Dominguez III that deposit insurance claims filed last year involving 10 banks with no more than 3,000 accounts each were settled in 17-22 working days.

This was faster than its target of 27 working days.

All deposit insurance claims filed in two comparatively larger banks with over 3,000 to 10,000 accounts each were settled in 37 to 40 working days, an improvement over its target of 41 working days.

Tan also reported that insured deposits paid in closed banks more than doubled to P471.15 million in 2021 from P219.68 million in 2020. PDIC was able to beef up its Deposit Insurance Fund (DIF) by 13.8 percent to P243.87 billion last year from P214.44 billion in 2020

In cleaning up its non-cash portfolio, Tan said that the 30,384 loan accounts resolved in 2021 were 70 percent higher than its target of 17,826 loan accounts for a three-year period from 2019 to 2021.

The government-run deposit insurer has resolved a total of 79,474 loan accounts.

Likewise, PDIC’s target of disposing of 807 real properties also improved as it completed the disposal of 1,141 real properties in 2021— bringing total asset disposal to 3,551 properties since 2019.

The PDIC manages a total inventory of 32,000 real properties and a five-year asset disposal program has been drawn up to expedite the disposal process.

Last year, it continued the implementation of electronic filing and payment arrangements to settle deposit insurance claims; and electronic bidding of properties as a new normal approach to asset disposal.

These online channels include the web-based claim form made available by the PDIC on its website; and payment channels such as PesoNet, Instapay, and other electronic money issuers.

“We also continued the use of digital media platforms and local information networks to provide prompt and continuing information to depositors and other clients,” Tan said.