TOPIC 1: PDIC LAW (RA 3591, amended by RA 7400,
9302 and 9576) deposit, or other evidence of deposit shall be
1. What is the purpose of PDIC law?
PDIC was established to promote and safeguard the
interests of the depositing public by way of providing
insurance coverage on all insured deposits.
2.    What are the main functions of PDIC?
 Deposit Insurer
 Co-regulator of Banks
 Receiver and Liquidator of Closed Banks
3.    What are the public policy objectives of PDIC?
 strengthen the mandatory deposit insurance
coverage system
 to generate, preserve, and maintain faith and
confidence in the country's banking system
 protect it from illegal schemes and
machinations.
4.    DEFINE
a) Deposit
 unpaid balance of money or its equivalent received
by a bank in the usual course of business
 obliged to give credit to a commercial, checking,
savings, time, or thrift account, evidenced by a
passbook, certificate of deposit, or other evidence of
deposit issued in accordance with BSP
 any obligation of a bank which is payable at the
office of the bank located outside of the Philippines
shall not be a deposit for any of the purposes of this
Act or included as part of the total deposits or of
insured deposit.
b) Insured deposit
 An amount due to any bonafide depositor in an
insured bank as of the date of closure but not to
exceed Five hundred thousand pesos (P500,000.00).
 In determining such amount due to any depositor,
there shall be added together all deposits in the
bank
 A joint account regardless of whether the
conjunction ‘and’, ‘or’ ‘and/or’ is used, shall be
insured separately from any individually owned
deposit account: Provided:
1) if the account is held jointly by two or more
natural or juridical persons or entities, the
maximum insured deposit shall be divided into
as many equal shares as there are individuals,
juridical persons, or entities, unless a different
sharing is stipulated in the document of deposit
2) if the account is held by a juridical person or
entity jointly with one or more natural persons,
the maximum insured deposit shall belong
entirely to such juridical person or entity
 the aggregate of the interest of each co-owner
over several joint accounts shall be P500,000.00
 no owner/holder of any passbook, certificate of
recognized as a depositor unless determined by
the Corporation to be an authentic document or
record of the issuing bank
5. What is the 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.
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.
6. What are covered by PDIC deposit insurance?
PDIC insures valid deposits in domestic offices of its
member banks.
1. By Deposit Type:
 Savings
 Special Savings
 Demand/ Checking
 Negotiable Order of Withdrawal (NOW)
 Certificate of Time Deposits
2. By Deposit Account:
 Single Account
 Joint Account
 Account “By”, “In Trust For” (ITF) or “For the
Account of” (FAO) another person
3. By Currency:
 Philippine peso
 Foreign currencies considered as part of BSP’s
international reserves
7. DEFINITION OF ACCOUNTS
a)    Single accounts
Single Accounts are individually owned accounts or
account held under one name, either as natural person1
or juridical entity2
1
Natural Person refers to any individual person. Single proprietors
are considered natural persons.
2
Juridical entity refers to a corporation, partnership or cooperative.
b)    Joint accounts
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.
 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.
c) “By”, “ITF” or “FAO” accounts
 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.
8. What are the rules in determining accounts
covered?
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?
In case of a condition that threatens the stability of the
banking system, the maximum deposit insurance cover
may be adjusted in such amount, for such a period, as
may be determined by unanimous vote of the BOD
chaired by the Secretary of Finance, subject to the
approval of the President of the Philippines.
10. REQUIREMENTS FOR CLAIMS
a)    Who are 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
 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
 Who are deceased whose filing of claim is thru the
legal heirs
b)    What are the documents required in support of
the claim?
 ORIGINAL EVIDENCE OF DEPOSITS
 savings passbook
 certificate of time deposit
 bank statement
 used or unused checks
 ATM card.
 ONE (1) VALID ORIGINAL PHOTO-BEARING
IDENTIFICATION DOCUMENT (ID) with clear
signature of depositor/claimant
(e.g., Driver's License, SSS/GSIS ID, Senior Citizen's
ID, Passport, PRC ID, OWWA/OFW ID, Seaman's ID,
Alien Certificate of Registration ID, Voter's ID).
 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 minor
depositor, the SPA must be executed by the parent.
 Claim Form:
 When filing claim during the onsite CSO period,
or during personal filing at the PDIC PAC, a
system generated Claim Form shall be printed.
 When filing through mail, download the PDIC
Claim Form. The claim form needs to be
accomplished, signed, and notarized. Depositors
must ensure that the signature on the Claim
Form is similar with the signature in the bank
records and the valid IDs submitted.
c)    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 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
 Deposit accounts or transactions that:
- Are unfunded, fictitious, or fraudulent
- Constitute and/or emanate from unsafe and
unsound banking practices* as determined by
the PDIC, in consultation with the BSP, 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)

*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