IC shutters Bureau of Fire Protection Mutual Aid Beneficiary Association

MANILA, Philippines — The Insurance Commission (IC) has ordered to stop the operations of Bureau of Fire Protection Mutual Aid Beneficiary Association Inc. (BFPMBAI).

Insurance commissioner Dennis Funa, in an order dated Dec. 12, 2017, placed BFPMBAI under conservatorship after it was found to be in operations despite a cease and desist order filed on Feb. 9, 2017.

Funa said the order stemmed from an administrative complaint filed by Fire Services Mutual Benefit Association Inc. (FSMBAI), a duly licensed mutual benefit association, against BFPMBAI.

FSMBAI is comprised of officers, employees and retirees of the Bureau of Fire Protection and personnel of the Department of Interior and Local Government.

However, Funa said BFPMBAI, through its counsel Ponce Enrile Reyes and Manalastas Law Offices, alleged that any attempt of the IC to enforce its cease and desist order is “premature” considering the entity has appealed the resolution to the Secretary of Finance.

“The commission, on the other hand, is of the adamant position that BFPMBAI is a mutual benefit association doing an insurance business, as defined under Section 403 of the Insurance Code,” Funa said.

“Accordingly, we have no recourse but to enforce prompt corrective action by placing BFPMBAI under conservatorship in order to protect the interests of its members and/or creditors,” he said.