Prudentialife Plans Inc. (PPI) has started releasing checks for an estimated 300,000 clients of various pre-need plans, the Insurance Commission said on Thursday, noting the amount to be settled is around P2.8 billion.
The troubled PPI started releasing checks to pension, life and educational planholders last December 15, newly appointed Insurance Commissioner Dennis Funa said in a statement on Thursday.
The commission placed PPI under conservatorship in 2010, before ordering in 2012 that the beleaguered preneed company be liquidated in the absence of a viable rehabilitation plan, but the planholders opposed the liquidation order and brought the matter before the Court of Appeals.
“Under the supervision of the Insurance Commission (IC), planholders can claim their checks by first checking the list of planholders with checks ready for pickup which is posted on the IC website at www.insurance.gov.ph,” the regulator stated.
Policyholders may also contact PPI at (02) 584-7376, 892-9198 or 847- 2846 or via firstname.lastname@example.org and email@example.com.
“The amount of P2.8 billion to be distributed was funded by the conversion of the respective non-liquid trust assets of PPI after it was ordered closed,” Funa said.
The checks represent the third tranche of distribution for educational planholders and the 2nd tranche of distribution covering life and pension planholders.
The appellate court has sided with the commission: that the liquidation order against PPI was arrived at in the absence of a viable rehabilitation plan that would allow the company to operate and continue as an on-going concern and service its planholders and restructure debts. The case was then elevated to the Supreme Court.
The SC affirmed the appellate court decision and denied the application for a temporary restraining order and writ of preliminary injunction to stop the liquidation of PPI.
In line with the IC-approved liquidation plan, the first tranche of payments covering all PPI planholders was made in August 2013, funded by the liquid trust fund assets of the company.
The second tranche for educational planholders was released in September 2015, and was funded by the sale of a 1,100-square meter in Bonifacio Global City in Taguig City.
The IC emphasized that PPI is different from Philippine Prudential Life Insurance Co. Inc., a life insurance company which was placed under conservatorship last month.