PDIC relaxes insurance rules for small depositors

Small depositors of closed banks may now get their money back without filing a claim with the Philippine Deposit Insurance Corp. (PDIC). Covered by the waiver for filing claims are those who have deposits of not more than P5,000, the PDIC said in a statement on Wednesday. Check payments will be sent through registered mail to the address indicated in the closed bank's records. Depositors should therefore regularly update their bank records especially their addresses to facilitate mailing of payments. Before, deposit insurance claims must be filed regardless of the amount. Depositors must also submit documents and other requirements to validate their accounts. "It is highly unlikely that accounts at the P5,000 and below level are involved in fraudulent transactions or are fictitious accounts," PDIC President Jose Nograles said. The PDIC chief said the new policy protects small depositors, allowing them to have their money back without having to spend on fares and documentary costs. The policy was approved during a recent meeting with the board of director of the Rural Bankers Association of the Philippines (RBAP) and the Cebu Confederation of Rural Bankers, Nograles said. — GMANews.TV