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Insurance Commission says helping protect Eternal Plans plan holders

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Warren De Guzman, ABS-CBN News

MANILA - Maria Theresa Francisco waited 15 years and paid P46,490 to Eternal Plans Incorporated (EPI) for the educational plan of her daughter but she was only able to withdraw less than what she was promised.She was supposed to start collecting checks from EPI in 2018 to pay for tuition, but she only ended up collecting 1 check worth P17,000. In her contract, she was entitled to over P120,000 in benefits plus another P17,000 in transportation allowance. It would have been a great help for her, especially during the pandemic. She and her husband lost their jobs, and her husband is also undergoing regular dialysis. They were forced to move their daughter to a public school just to keep her education on track. &quot;Na pandemic, nawalan kami ng trabaho, nag transfer kami sa public school, government school dito sa Bacolod. Kaya mabuti wala kaming bayad doon, nakatulong sa amin ang pag transfer sa public school,&quot; Francisco said.Francisco said she had three other friends who purchased plans from EPI and these plans were supposed to start paying out during the pandemic. Instead, they were reduced to complaining online in a Facebook Support group specifically catering to EPI plan holders.This, after Eternal Plans Incorporated, was placed under conservatorship by the Insurance Commission in late January, as announced by the Department of Finance on March 3. The DOF said Section 49 of the Pre-Need Code states that “a conservator may be appointed to take charge of the assets, liabilities, and the management of such company, collect all moneys and debts due the company and exercise all powers necessary to preserve the assets of the company, reorganize its management, and restore its viability.”Insurance Commission Media Relations Officer Alwyn Villaruel said EPI has indicated that it has every intention of fulfilling its responsibilities to plan holders.The industry as a whole, however, has been consolidating since 2019 when the Insurance Commission raised capital requirements for pre-need companies.“The company has expressed its commitment that it would be servicing it would be continuing to serve its customers, and we are counting on that representation by the company,&quot; Villaruel said.Villaruel added that the entry of EPI into conservatorship is not a step toward closing the company. &quot;It had been misconstrued as the insurance commission trying to close down the company, but that is not the case here. In this case, what we are trying to do is actually to help the company become viable again and with the ultimate objective of protecting its plan holders once the company has been restored to financial health,&quot; Villaruel said. <div>PRE-NEED SECTOR</div>From as many as 19 pre-need companies in 2017, the industry now only has 12 licensed pre-need companies, based on data from the Insurance Commission website. Eternal Plans hasn’t been able to obtain a new license from the Insurance Commission since 2018. Pre-need companies need to apply for a new license with the IC annually. Villaruel said that year, Eternal Plans had a trust fund deficiency of P209.7 million.The IC said they&#x27;re not sure how long it will take for EPI to be nursed back to health, but it will largely depend on the company’s willingness to infuse the needed money to meet its obligations. If needed, the conservator may choose to liquidate EPI assets to bring in more cash. In 2021 it was reported that EPI infused P300 million in fresh capital into its business. &quot;That was taken into account, but regrettably, despite the infusion, the conservatorship order was still issued, as there was still a finding of trust fund deficiency despite the infusion,&quot; he said. He said the company reiterated its commitments to pay plan holders on time.Efforts to reach out to EPI management have not been successful.During the pandemic, the total plans sold fell from 925,000 in 2019 to 383,000 in 2020, before rebounding to around 414,000 as of September 2021. The industry as a whole suffered a net loss of P2.25 billion in 2020.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/life/03/02/22/cebuana-lhuillier-now-offering-insurance-for-dogs">Did you know? 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The Insurance Commission placed Eternal Plans Inc. under conservatorship in January.

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Insurance Commission says helping protect Eternal Plans plan holders

Warren De Guzman,

ABS-CBN News

Published Mar 04, 2022 06:56 PM PHT

Read More:

Eternal Plans Inc

Eternal Plans conservatorship

insurance commission

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education plan

pre-need plan

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