FIN 100: Philippine Deposit Insurance Corporation

Deposits in various Philippine banks, including branches and agencies of foreign banks, are insured by PDIC, except for specific exclusions.

Investment products (like bonds, securities, trusts), unfunded/fictitious/fraudulent accounts, deposits from unsafe practices, and proceeds of unlawful activities are excluded from PDIC deposit insurance.

All operating banks in the Philippines are required to be members of PDIC.

Foreign currency deposits are also insured by PDIC, subject to specific laws and regulations (RA 6426 and CB Circular 1389).

Philippine banks with branches abroad can elect to include their overseas deposit obligations in the PDIC insurance coverage, with board approval.

Bank accounts without sufficient funds are not covered by PDIC.

Deposits resulting from risky or unsound banking methods are not protected by PDIC.

Deposits that are legally considered to be from illegal activities are not insured by PDIC.

The process of examining deposit records and evaluating claims before PDIC starts paying insured depositors.

Thorough review of deposit records to ensure accurate and complete data before processing claims.

Claims for deposit amounts exceeding the maximum insured deposit (P500,000) are filed with the closed bank's liquidator.

A contract where an insurance company provides a death benefit to beneficiaries in exchange for premiums.

Insurance that protects against losses other than death, like property damage, liability, and accidents.

Most non-life insurance policies are valid for one year, with premium payments typically made annually.

Insurance helps to reduce financial uncertainty by providing a guaranteed payment in case of an insured event.

Insurance shields individuals and businesses from financial losses caused by covered events, like accidents or disasters.

Using money to make a profit or grow in value over time. It can involve buying assets like stocks, bonds, or real estate.

A gradual increase in the prices of goods and services over time, causing your money to buy less.

The profit or gain made on an investment, expressed as a percentage.

The chance of losing money or not getting the expected return on an investment.

The percentage charged by lenders for borrowing money or paid by banks to depositors.

Economic conditions, like demand for money, government borrowing, and inflation, influence interest rates.

Investing in assets with a shorter maturity period, like fixed deposits or savings accounts.

A type of investment in a bank where you deposit a fixed amount for a specific period, earning fixed interest.

Pawnshops provide short-term loans secured by personal property, enabling individuals to obtain cash quickly.

Pawnshops offer loans, purchase of pawned items, and sometimes provide other services like money transfers.

Pawnshops are regulated by the Central Bank to ensure fair practices, transparency, and customer protection.

The GSIS provides life insurance coverage to government employees, offering protection for them and their families.

The GSIS Enhanced Life Policy provides life insurance coverage from the very first day of government service.

The GSIS offers various retirement programs for government employees, including lump sum payments, annuities, and pension plans.

The GSIS 'Magic 87' retirement program provides both a regular pension and a lump sum payment upon retirement.

This law allows government employees to combine their GSIS and SSS years of service for retirement benefits.

A benefit paid to the beneficiary if the insured member dies due to an accident, provided the claim is filed within four years of the accident.

A benefit that pays the insured member's salary if they are unable to work due to a sickness that's classified as an occupational disease or is proven to be caused by their working conditions.

A portion of the GSIS's profits that is distributed to policyholders, based on the performance of their insurance policies.

The value of a life insurance policy if the insured member decides to terminate it before its maturity. It's calculated based on the premiums paid.

The amount paid to the beneficiary of the insured member upon their death. It's typically calculated as a multiple of the member's salary.

A type of insurance that covers properties against fire damage. It requires specific documents as proof of ownership.

A type of insurance that covers cars against accidents and other risks. It requires various documents for registration and ownership proof.

A type of GSIS loan that combines various loan products into one. More information can be found on the GSIS website.

The timely payment of deductions from employees' salaries to the Government Service Insurance System (GSIS) by employers.

The deadline for employers to remit GSIS premium deductions is within the first ten days of the month following the month the deductions were made.

Agencies face a penalty of 2% interest per month on unremitted collections, calculated from the due date until payment.

Agency officials responsible for late remittance of GSIS deductions face administrative and criminal charges, with possible imprisonment and fines.

Employees with 3 to 15 years of service receive a lump sum cash payment equivalent to 18 times their basic monthly pay upon separation.

Employees with at least 15 years of service receive a lump sum payment and a monthly old-age pension upon reaching age 60.

Employees who contributed to GSIS for 1 to 3 years receive unemployment benefits for 2 months, with benefits increasing with longer contribution periods.

For uniformed personnel (PNP, BJMP, BFP), the reckoning date for separation benefits is February 1, 1996.