MANILA – House Deputy Speaker and Quezon Rep. Lorenzo Tañada has sought an investigation into the conservatorship of Prudential Life Inc., saying he "felt the need to respond to complaints by the plan-holders that they are being disenfranchised by the Insurance Commission in its consideration of proposals to rehabilitate PPI."
"House Resolution 2537 will launch a congressional inquiry into whether the Pre-Need Code needs amendment to protect the rights and interests of plan holders in cases like this one, where the firm is under conservatorship," Tañada said.
He said that Prudential Life has been under conservatorship since 2010, and was placed in a state of suspension of payments last March while the Insurance Commission decided on its proposal for rehabilitation. It has not been allowed to sell new plans since 2009.
The plan holders of PPI just want to be included in the process of determining the acceptable rehabilitation plan of the company. That is their right, because they are the owners of the trust fund that will be used for the rehabilitation, Tañada said.
In fact they have already rejected a proposal from PPI and Manila Bankers Life Insurance, and have forwarded their own, he added.
Unfortunately, the conservator had come out in the media stating a preference for the PPI proposal, which put the plan-holders in an awkward position because they thought the conservator represented their interests, Tañada also said.
"HR 2537 asks the question, ‘who is the conservator meant to be representing here?’ Is it the plan-holders, the company, or the Insurance Commission? Under the law, the conservator is appointed by, and accountable to, the Commission – but isn’t the Commission also supposed to represent the interests of the plan-holders?" he said.
There is a lot at stake here – hundreds of thousands of families’ lives and futures are involved. I don’t want to wait to make changes in the law when the damage has been done; we need to correct it now with the first case so that the rest can really benefit, he added.*PNA