June 23, 2020
Dear Winona Fajardo,
Greetings!
Thank you for your request dated May 27, 2020 03:19:37 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
Please note that the Presidential Communications Office (PCOO) suspended the period to resolve FOI requests due to COVID-19, specifically those new requests made from 13 March 2020 and all those that remained pending until the imposition of Enhanced Community Quarantine (ECQ), until such time that ECQ is lifted and work in the Executive branch of government attained normalcy. With PCOO FOI Advisory No. 04, s. 2020, processing requests resumed on 01 June 2020 or when GCQ became effective.
Your request concerns the Savings Insurance in the Philippines, specifically with the following questions:
1. lf there are savings insurance products in the Philippines;
2. lf the answer to question no. 1 is affirmative, if the insurer defaults, who will be liable?
3. ls bank financing to buy Savings insurance for individuals allowed? lf yes, what is the permitted financing interest rate?
4. What are the currency breakdown percentages (USD, PHP, etc) of life insurance policies held by Philippine life insurance companies?
Relative to the above-mentioned inquiry, may we inform you of the following:
1. To question no.1, we are not sure if you are referring to an insurance product with savings component like endowment or whole life insurance products, or a deposit insurance provided by Philippine Deposit Insurance Corporation.
2. To question no. 2, if you are referring to an insurance product with savings component, then a Security Fund shall be used in the payment of allowed claims by reason of insolvency of the company as stated under Section 378 of the Amended Insurance Code. Also, if an insurer is under liquidation, Section 256 of the same Code states that a liquidator shall convert the assets of the insurance company to cash, or sell, assign or otherwise dispose of the same to the policyholders, and other parties for the purpose of settling the liabilities or paying the debts of such company. However, if you are referring to a deposit insurance product, may we advise you to direct your question, or inquire with, the Philippine Deposit Insurance Corporation.
3. To question no. 3, if you are referring to financing interest rates used by banks, i.e. interest on loan when the loan is intended to finance "savings" insurance, may we advise you to direct your question, or inquire with, the Bangko Sentral ng Pilipinas.
4. To question no. 4, we regret to inform you that we do not have any data/information on currency breakdown percentage of life insurance policies held by the Philippine life insurance companies.
With these, we deemed that your FOI request is answered. If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to
[email protected]. Your review request should explain why you are dissatisfied with this response, and should be made within 15 calendar days from the date when you received this letter. We will complete the review and tell you the result within 30 calendar days from the date when we receive your review request.
If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011).
Thank you.
Respectfully,
Tranquilino Espejon
FOI Receiving Officer
