PDIC, LandBank team up for insurance claim payment system

Posted at 12/21/12 5:01 PM

MANILA, Philippines - The Philippine Deposit Insurance Corp. and Land Bank of the Philippines have signed a memorandum of agreement for new schemes for the payment of deposit insurance claims.

In a statement, PDIC said depositors may now be paid through the issuance of a LandBank-issued manager's check or by transferring funds to their LandBank accounts.

"[These are] both aimed at providing convenience and security to depositors," PDIC said.

PDIC acts as a receiver and liquidator of shuttered banks. Thus, the agency is the one responsible for the settlement of deposit insurance, the maximum coverage of which is P500,000 per depositor.

The new schemes add to the other means of claiming deposit insurance payments such as through cash cards or cash-over-the-counter.

"The PDIC continues to conduct process and systems reviews to enhance its core operations particularly in implementing convenient deposit insurance payment schemes to better serve depositors of closed banks," the agency said.