PDIC LAW

The PDIC or Philippine Deposit Insurance Corporation 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.

What are the insurable deposits/interests?

PDIC insures valid deposits in domestic offices of its member banks.
1. By deposit type:
• Savings
• Special Savings
• Demand/Checking
• Negotiable Order of Withdrawal
• 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

What is the maximum deposit insurance coverage?

PDIC shall pay deposit insurance on all valid deposits up to the Maximum Deposit
Insurance Coverage of Php500,000, per depositor, per bank. The total share of the depositor
in his joint account shall be separately insured from his single account up to Php500,000. A
depositor with single and joint accounts may have insured deposits of up to Php1,000,000
only per bank.

What are the requirements for claims?

1. Original evidence of deposits – examples are savings passbook, ATM card, checks,
bank statement
2. One or two valid original photo-bearing ID with depositor’s clear signature –
examples are Driver’s License, PRC ID, Passport, etc.
3. Certified copy or photocopy of birth certificate issued by PSA and valid ID of the
parent – for depositors below 18 only.
 4. Original copy of a notarized SPA or Special Power of Attorney – for claimants who
are not the signatories in the bank records.
5. Claim form – can be filed onsite or through mail.

Steps for claims:

STAGE 1 Examination of Deposit Accounts

Deposit accounts are examined and validated against records of a closed bank upon
takeover.

STAGE 2 – Filing of Claims

Filing of claims for deposit insurance by the depositor following the steps laid down in the
Notice to the Depositors published by the PDIC.

STAGE 3 – Evaluation of Claims

Filed claims are evaluated by the PDIC in accordance with established guidelines.

STAGE 4 – Decision on the Claims

Claims are resolved by the PDIC in accordance with established guidelines.

STAGE 5 – Reconsideration of Denied Claims

a. Depositor/s with claims wholly or partially denied may request for a reconsideration
within 60 days from receipt of the notice of denial of their claim/s.
b. The request must be in writing. It must be accompanied by a duly notarized affidavit
together with documents that would support the deposit/s made in the bank. The
supporting documents must be new evidence that have not been submitted at the
time the claims were filed.
c. Request for reconsideration filed after the abovementioned 60-day period shall no
longer be entertained by the PDIC and the decision of the PDIC denying such claim/s
shall be deemed final and executory.
Multiple Choice Questions with Answers

1. Statement 1: All recorded, documented, or booked as deposit by the bank are insurable
deposits.
Statement 2: Deposits that are from proceeds of unlawful activity is still insurable as long as
it is deposited properly.
a. Both statements are correct
b. Both statements are incorrect
c. Only statement 1 is correct
d. Only statement 1 is incorrect
2. “Anikka by Tina”, Who is the depositor?
a. Anikka
b. Tina
c. Anikka and Tina
d. None of the above
3. “Anikka In Trust for Tina”, who is the depositor?
a. Anikka
b. Tina
c. Anikka and Tina
d. None of the above
4. “Anikka For the Account of Tina”, who is the depositor?
a. Anikka
b. Tina
c. Anikka and Tina
d. None of the above
For no. 5-7
Anikka has the following deposits:
Account Name Deposit Insured Deposit of A. Sy
Anikka Sy 100K 100K

Tina Go For the 100K 100K

Account of A. Sy

Kim Santos In 250K 150K

Trust For A. Sy

Anikka Sy’s Store 500K ?

TOTAL 950K ?

Compute for the:

5. Insured deposit from Anikka’s store.

a. 500K
b. 100K
c. 150K
d. 250K
6. Total insured deposits of Anikka Sy:
a. 850K
b. 600K
 c. 450K
d. 500K
7. How much is the maximum amount that can be insured in Anikka’s Share in her joint
account deposits given the above data?
a. 500K
b. 1M
c. 400K
d. Cannot be determined by the information given
8. Statement 1: Joint accounts held in the names of a juridical entity and a natural person shall
be presumed to belong solely to the juridical entity.
Statement 2: A joint account regardless of whether the conjunction “and”, “or” or “and/or”
is used shall be insured separately from single accounts.
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
9. A depositor with single accounts and joint accounts may have insured deposits of up to
what amount?
a. PHP 500,000
b. PHP 1,000,000
c. PHP 1,500,000
d. PHP 2,000,000
10. The following are insurable interests except one:
a. Savings
b. Checking
c. Bonds
d. Certificate of Time Deposit
11. What is the amount of insured deposit?
a. Minimum of 500,000, gross
b. Maximum of 500,000, gross
c. Maximum of 500,000, net
d. Minimum of 500,000, net
12. Which of the following is not a function of PDIC?
a. Deposit insurer
b. Co-regulator of banks
c. Receiver and liquidator of closed banks
d. Engage of the lending of funds obtain from the public.
13. Statement. Joint accounts shall be insured separately from any individually-owned deposit
account.
a. True b. False
14. Which of the following is not covered by PDIC deposit insurance?
a. Commercial banks
b. Savings banks
c. Mortgage banks
d. Bonds and securities
15. Statement 1. Natural person refers to any individual person.
Statement 2. Juridical entity refers to a corporation, partnership or cooperative.
a. Only statement 1 is true
 b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
16. Statement 1. 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.
Statement 2. Joint accounts held in the names of a juridical entity and a natural person shall
not be presumed to belong solely to the juridical entity.
a. Only statement 1 is true
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
17. A depositor with single accounts and joint accounts may have insured deposits of up
to_____
a. Php1,000,000
b. Php500,000
c. Php1,500,000
d. Php2,000,000
18. The depositor’s total shares in his/her joint accounts shall be separately insured up to______
a. Php1,000,000
b. Php500,000
c. Php1,500,000
d. Php2,000,000
19. Statement. 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.
a. False b. True
20. Juridical entity refers to the following EXCEPT
a. Corporation
b. Partnership
c. Sole Proprietor
d. Cooperative
21. Depositor/s with claims wholly or partially denied may request for a reconsideration within
___ days from receipt of the notice of denial of their claim/s.
A. 60 C. 70
B. 50 D. 40

22. The request must be in ______. Which of the following is the answer?
A. Writing C. Either of the two
B. Oral D. Neither of the two

23. It must be accompanied by a duly ________ affidavit together with documents that would
support the deposit/s made in the bank.
A. Notarized C. Assurance
B. Recorded D. Perfect
24. Request for reconsideration filed after the abovementioned 60-day period shall no longer be
entertained by the PDIC and the decision of the PDIC denying such claim/s shall be deemed
final and executory.
a. True
b. False

25. Deposit accounts are examined and validated against records of a closed bank upon
takeover.
a. True
b. False
26. Filing of claims for deposit insurance by the depositor following the steps laid down in the
Notice to the Depositors published by the PDIC.
a. True
b. False
27. Filed claims are evaluated by the PDIC in accordance with established guidelines.
a. Filing of Claims
b. Evaluation of Claims
c. Decision of Claims
d. All of the Above.

28. Claims are resolved by the PDIC in accordance with established guidelines.
a. A Filing of Claims
b. Evaluation of Claims
c. Decision of Claims
d. All of the Above.
29. Filing of claims for deposit insurance by the depositor following the steps laid down in the
Notice to the Depositors published by the PDIC.
a. A Filing of Claims
b. Evaluation of Claims
c. Decision of Claims
d. All of the Above.
30. The supporting documents must be new evidence that have not been submitted at the time
the claims were filed.
a. True
b. False