MANILA, Philippines - Planholders of Prudentialife Plans Inc. (PPI) are facing a bleak future as the company nears liquidation of its remaining assets and what's left of its deficient trust funds. After failing to infuse fresh capital, the Insurance Commission put the company under receivership.
IC spokesman Atty. John Apatan said for educational plans, the trust fund deficiency has ballooned to P8.57 billion and for the pension plans, the deficiency is at P5.35 billion. Only the life plan or memorial plan has an excess of P72 million but its insurance premium reserve is also deficient by P582 million.
According to Apatan, for educational planholders, in case of liquidation, they will only get a portion of what they have contributed depending on the status of payment. The same is true for pension plan holders as both their trust funds are no longer enough to cover requirements of the planholders.
But Apatan clarified that the company is still given 30 days to find a white knight to infuse capital to the company.
Apatan said consumers should not shun pre-need products despite what happened to Prudentialife Plans. With the new Pre-need Code, consumers are now assured of the parameters of investments, reserve requirements and interest rates to protect the investments of consumers.
Despite being placed under receivership, PPI said it still believes its rehabilitation plan called "Balik-Bayad Program," which it filed with the IC last May 8, is still the best program. The program would allow all payments made on pension and education plans to be returned to planholders, and would restore PPI's license as a life plan company.
In a statement, PPI said there are still many planholders who want the company to continue.
PPI officials assured planholders that they will do everything possible to protect the interest of all stakeholders while working closely with the IC on solutions for PPI to resume business.
PPI management said that there are still a great number of planholders who want PPI to continue as an ongoing concern. Part of the rehabilitation plan is PPI's urgent petition to restore its license as a life plan company.
PPI officials assured planholders that they are working to protect their interests and with the IC for a solution to its problems.
Planholders may call 840-0050 for updates.