Prudentialife pPlan holders want liquidation deferred

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MANILA, Philippines—Insurance Commissioner Emmanuel Dooc has deferred the liquidation of the troubled preneed firm Prudentialife Plans Inc. on the request of some plan holders themselves.

 

In a hearing at the House of Representatives on Tuesday, plan holders who formed the Prudentialife Warriors called on the Insurance Commission to defer the liquidation process because they wanted more time to study the firm’s records.

 

According to Prudentialife Warrior member Eleuteria Buhay, they had yet to peruse the actuarial report of the firm. They want to know what assets and liabilities the firm has so they would be sure to get the maximum amount they could from the failed company.

 

“If we liquidate the firm, how will we safeguard our interests? We do not have documents in our possession so that we can check if we would be able to get the maximum amount that we are supposed to receive from the liquidation process,” Buhay said.

 

Last year, Prudentialife was placed under receivership after it could no longer cover the preneed plans that hundreds of thousands of investors had paid for.

 

The company was reported to have been cofounded in 1978 by former Ambassador to the Holy See Francisco Alba and Jocelyn “Joc-joc” Bolante who later joined the Arroyo administration and was implicated in the P728-million fertilizer fund scam.

 

The Insurance Commission wants to go ahead and liquidate the failed preneed company.

 

Under the liquidation plan, some P8 billion in trust funds is to be divided among 300,000 holders of educational, pension and memorial plans. The trust funds consist of cash and noncash assets, but the latter would have to be sold first.

 

But the plan holders are expected to receive only a portion of the principal amount they paid for, and this would depend on the kind of plan they hold. Educational plan holders could get back an average of only 20 percent; pension plan holders, around 43 percent; and memorial plan holders, 80 percent.

 

As the trust fund is being distributed, the Insurance Commission intends to file insolvency proceedings in a regular court to run after the other corporate assets of Prudentialife, including those held by its subsidiaries.

 

Buhay said one of the plan holders’ concerns was that after the release of the first tranche of their refund, they would be told there would be many liabilities that would have to be paid for from the sale of the assets, thereby depriving them of the chance to get their money back.

 

There are other plan holders, however, who would like the liquidation process to begin immediately so they could recover some money as soon as possible, Dooc said.

 

He said he had to balance the conflicting demands of the plan holders.

 

He said he was also worried that at any time, the Court of Appeals could issue a temporary restraining order to stop the liquidation process.

 

Prudentialife Plans earlier filed a petition challenging the order to liquidate the firm.

 

At any rate, Dooc has agreed to give the plan holders some time to study the firm’s records.

 

Deputy Speaker Lorenzo Tañada III, who chairs the committee hearing the case, said the plan holders’ request for a deferment did not sound unreasonable.

 

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  • disqus_UO2fCuQ429

    I am a Prudentialife planholder and I am in the group who wants to pursue the liquidation… I want to have some of my money back to augment my son’s necessities instead of assuming to 100% money back…

  • Guest

    I am a Prduentialife planholder and I prefer to be in a group who would like to pursue the liquidation so that I can recover now some of money which could augment to my son’s necessities instead of assuming 100% money back….

  • http://twitter.com/hp2184 RJ Legaspi

    Instead of investing on preneed plans put your money in a mutual/trust fund or even in a time deposit account. Principal and interests accumulated over the years of saving your money on these channels could help you cover the expenses in the future, in your child’s college education for instance.

  • Chrisnadal19

    its karma for prudential life dahil yng agents nila mukhang pera.

  • joboni96

    i revive na laang yan

    lean web-enabled low-cost organization
    new investors, pilipino only
    new planholders, kahit hindi pilipino
    new management with the better in the old
    3 planholder reps in the board

  • JOHNCeneza

    That’s why I don’t really trust any insurance firms, they are just like legalized version of a ponzi scams. They just pay claims from new premiums, and we won’t really have control over what they spend our money for. And when they go bankrupt, we just get a portion of what we paid for because they already spend the money on salaries, commissions, overhead and other unnecessary assets.

    • arvin

      I am also a prudential life plan holder with my kid educational plan….I was victimized by these people in the pre-need companies because these are not globally recognized and handled by SEC – which is not known expertise in the insurance industries…actually if we get into the bottom line

      the problem at first is during legislation…why the lawmakers create pre-need companies whose function is like an Insurance and under SEC.

      If currently and proven track record is the Insurance commission who handle life insurance and non life which can also cater same products with pre-need companies…

      right now I have 6 policies under life insurance and not pre-need companies…..

      Pre need is different from life insurance.

      • JOHNCeneza

        The distinctions is not that clear anymore since many insurance firms offer pension plans which is a pre-need product. Unsuspecting and non-informed Clients will be enticed by agents (after their commissions) by “possible” huge earnings from investment when in fact, only the insurance part is guaranteed by the insurance commission. When the times come on the product maturity, the firm will just send letters that due to economic crises, they cannot give the planholder what was promised.

      • arvin

        It may happened that the earning of investment will reduced depending on the performance of the funds but so far two of my policy is earning very well infact i don partial withdrawal to my account value to pay for the education of my son whose educational plan from prudential life was put on hold.

        I think its depend on what product you are joining…if endowement which earn devidends or VUL whose funds is invested in equities or stocks, bonds and combination……you must study the poilcy before you sign..this is what i learned from my experience sinse 2004….

        but thanks for your thoughts or sharing….

  • NAGMAMARUNONG

    ARE THERE PHIL LAWS THAT PROTECT THESE EMBEZZLERS? INSTEAD THE INSURANCE COMMISSION SHOULD PROTECT THE THOUSANDS OF HELPLESS INVESTORS OR INSUREDS. IF THE COMMISSIONER RUNS IN FAVOR OF ALBA ET AL THEN WE RATHER ALL BE DAMNED.

    • dodong1

      there might not be any laws protecting the embezzlers but there are plenty of politicians and big names protecting whoever are the embezzlers…

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