SC denies Prudentialife appeal vs liquidation
August 3, 2016 | 4:01pm
MANILA, Philippines — Payment of claims of shuttered Prudentialife Plans Inc. will continue after the Insurance Commission (IC) scored a win against the company at the Supreme Court four years after it was put under receivership.
"The Court resolves to deny the petition for failure of petitioners to sufficiently show that the Court of Appeals committed any reversible error," the high court said in its resolution dated April 19.
The IC received the decision two days ago. A copy of which was sent to The STAR.
In September 2012, the IC put Prudentialife under receivership after all proposals to rehabilitate it failed to meet its obligations at best value. The prior year, the company had a deficit of P12.3 billion.
Even the receivership failed, leading the IC to order the company's liquidation a month after. The company questioned this before the Court of Appeals, but lost in 2014. It then took the case to the high court last year.
Sought for comment, Insurance Commissioner Emmanuel Dooc said the ruling paves the way for a "clearer" disposition of remaining Prudentialife assets.
"We have been distributing claims since 2013 and what remains now are the non-cash assets yet to be disposed," Dooc said in a phone interview.
According to an IC statement, the first tranche of releases for education, pension and life planholders were funded by the company's remaining trust fund. They were released last August 2013.
For education planholders, the second tranche was already released last September 2015 using funds from the sale of the 1,100-square meter lot which Prudentialife owned at the Bonifacio Global City in Taguig City.
The rest could be given in the last quarter of the year, Dooc said, following approval of the sale of the firm's building in Guadalupe.
"There are several properties currently under negotiation for sale. The proceeds of sale of these properties will be used to fund the payments...," the IC said.
Asked when claim distributions could be completed, Dooc said it might take time.
"It will depend on how fast we can liquidate the non-cash assets of the company. We do not want to rush the sale of assets because we want to get the best value for them," he said.
IC has not released data on how much claims have been paid, how much are remaining and the worth of the remaining assets.
With the high court decision, Dooc reminded planholders to file their claims and get their checks from the Prudentialife head office in Makati City.
"There are still many planholders who have not claimed their benefits. We would like to remind them that all they have to do is to come to the office and get them," Dooc said.
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