IC proposes 3 ways to appease defunct Prudential Plan clients

By Jun Vallecera, BusinessMirror

Posted at Jun 04 2012 07:59 AM | Updated as of Jun 04 2012 03:59 PM

MANILA, Philippines - The Insurance Commission is considering three proposals seen to soothe the frayed nerves of clients of the closed pre-need firm Prudential Plans Inc., including one seeking to take over the educational line by a firm that has never offered such a service before.

This was bared by Insurance Commissioner Emmanuel Dooc who told reporters that Loyola Plans Consolidated Inc. expressed interest in taking over not just the life or memorial as well as pension lines of Prudential Plans Inc. but its highly-charged education plan line as well.

Dooc said he and Loyola Plans Senior Vice President Christopher Concepcion met just last week and was told the pre-need firm was interested in taking over the memorial and pension lines of the defunct rival and may even take over Prudential Plan’s educational line also.

“I am interested in Concepcion’s proposal,” the regulator said who bared two other proposals seeking to put a happier ending to the misfortunes suffered by thousands of PPI plan holders who each put up hundreds of thousands of pesos as premium payments but who, in the absence of a mutually agreeable solution, stand to forfeit every centavo promised by PPI in its heyday.

Loyola Plans is known for its memorial and pension plan services and has wisely refrained from extending educational plans that has decimated the industry when tuition fee limits were liberalized and school operators were free to impose what they willed.

Plans to rescue PPI plan holders from total loss of benefits paid include the conversion of their premium contribution as equity in a proposed revival of PPI now under financial rehabilitation and the proposed rescue plan advanced by rival firm Manila Bankers Life.

Dooc said the Manila Bankers Life proposal is still under evaluation just like the proposal of seeking to revive the PPI under the equity conversion scheme advanced by a group of PPI plan holders.

Dooc said Manila Bankers Life has formally submitted its proposal to the IC where it also had been subjected to a thorough evaluation.