PEP Coalition

We fight for truth, justice and good corporate governance!

P50-million pre-need protection fund eyed

Manila Bulletin
Dec. 13, 2000

The Philippine Federation of Pre-need Plans Companies Inc. (PFPPCI) has asked the Securities and Exchange Commission (SEC) to approve the building up of P50 million fund for the proposed planholder’s protection fund as part of the program by the industry and the agency to check into the solvency of pre-need firms.

In the draft documents culled from the SEC, it was proposed that members of the federation contribute R1 million each to the fund. This will be advanced in their trust funds for the immediate building up of the proposed P50 million protection fund for planholders.

The P1 million contribution will be amortized by the preneed companies back to the trust fund for five years at R200,000 a year.

In this line, the PFPPCI said that the contribution to the fund will remain as assets of the company and that only the earnings of the fund will be used to pay for claims of planholders from insolvent companies.

Moreover, the federation recommended that limits of claims to be paid is P50,000 or the actual amount of the benefits being claimed whichever is lower. In addition, the fund, the federation said, should be managed by both the federation and the corporate regulator which is also subject to audit by the SEC auditors.

The move was among the salient issues that was discussed between the SEC and the federation, along with requiring pre-need firms to maintain a solvency margin and a minimum standard of valuation for all pre-need companies to determine their financial stability and solvency. (RGB)


December 13, 2000 - Posted by | Philippine Newspapers/Web News | ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: