Dear PAO,
My parents have individual savings accounts amounting to P1,000,000 each. Unfortunately, the bank where they maintain an account declared bankruptcy and eventually closed. We tried to claim the deposit insurance coverage, and we were informed that my parents can only claim P500,000 each. Is this correct?
Ava
Dear Ava,
Under Section 5 (k) of Republic Act (RA) 3591, otherwise known as the “PDIC Charter,” as amended by RA 10846, the maximum amount of insurable coverage that can be claimed by a depositor is P500,000 only regardless of the number of accounts in a bank. It states:
“SEC. 5. As used in this Act – xxx
“(k) The term ‘insured deposit’ means the amount due to any bona fide depositor for legitimate deposits in an insured bank as of the date of closure but not to exceed Five Hundred Thousand Pesos (P500,000.00). Such amount shall be determined according to such regulations as the Board of Directors may prescribe. In determining such amount due to any depositor, there shall be added together all deposits in the bank maintained in the same right and capacity for his or her benefit either in his or her own name or in the name of others. 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, That (1) If the account is held jointly by two or more natural persons, or by two or more 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, and (2) If the account is held by a juridical person or entity jointly with one or more natural persons, the maximum insured deposit shall be presumed to belong entirely to such juridical person or entity: Provided, further, That the aggregate of the interests of each co-owner over several joint accounts, whether owned by the same or different combinations of individuals, juridical persons or entities, shall likewise be subject to the maximum insured deposit: Provided, furthermore, That the provisions of any law to the contrary notwithstanding, no owner/holder of any passbook, certificate of deposit or other evidence of deposit shall be recognized as a depositor entitled to the rights provided in this Act unless the passbook, certificate of deposit or other evidence of deposit is determined by the Corporation to be an authentic document or record of the issuing bank.
xxx” (Emphasis supplied)
Thus, regardless of the amount of deposit in a bank, the maximum insurable coverage of a depositor, as provided by law, is P500,000 only. Any deposit above the said threshold is no longer covered by the insurance provided by the Philippine Deposit Insurance Corp.
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net.
