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Businesswoman complains against Philam Life for 'churning' insurance policies

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Adrian Ayalin, ABS-CBN News

MANILA - A businesswoman on Wednesday complained against Philippine American Life and General Insurance Company (Philam Life) after the firm allegedly continued to ignore a complaint against the practice of “churning” done by three of its agents.Mona Tan, who owns an &quot;auto business,&quot; has filed a case against Philam Life as well as agents Leticia Ang, Vicente Ang, and Ernesto Lim before the Insurance Commission for the practice of “churning” or terminating insurance policies and creating new ones to generate more commissions.The company said it has received Tan&#x27;s complaint and is working with the Insurance Commission to resolve this.In a press conference, Tan and her daughter Melissa said it was a difficult decision for them to come out but they had to warn other policy holders.“llang dekada na po ang pagsasamantala na ginagawa sa amin ng Philam Life. Hindi rin po kami tinulungan ng Philam Life para ma-settle ang aming kaso, wala silang ginawa, at ito ay para rin po mabigyan ng babala ang ibang Philam clients,” Melissa said.(Philam Life has been taking advantage of us for decades. They did not help us settle our case, they did nothing, and we do this to warn other Philam clients.)The younger Tan also said their family has been a loyal client of Philam Life since 1990, with 359 different policies for their family members and employees of their business.She said they have paid an estimated P101 million for the policies they got from Philam Life. “Ilang beses na kaming pabalik-balik sa opisina nila para dinggin ang aming reklamo, kaya nagsumbong na kami sa Philippine Insurance Commission, basta makuha lang nila (Philam) ang pera namin. Naturingang VIP client pero pinababayaan kami,” Mona Tan said.(We have come back many times to their office for them to hear our complaint, so we decided to complain before the Philippine Insurance Commission just for [Philam] to get our money. They consider us VIP clients but they are neglecting us.)According to the Tan family&#x27;s lawyer Leonardo Benedicto Jr., they asked for the revocation of Philam Life&#x27;s license before the Insurance Commission in the administrative complaint they filed last year.In the complaint, the Tans said their policies were converted to automatic extended term insurance, some lapsed for unknown reasons, while others lapsed after one to three years, without their knowledge.“Sa ibang insurance companies, &#x27;pag nagkaroon ng churning, nagre-red flag na dapat &#x27;yun eh. Bakit naman sa isang instance hindi mabayaran ang policy niya and at the same time bibili siya ng bago?” Benedicto said.(In other companies, when there is churning, that is immediately flagged. Why would a client fail to pay for a policy and then buy a new one?)Benedicto said the Insurance Commission has scheduled a hearing on August 28 for their initial presentation of evidence.Philam Life, meanwhile, denied the elder Tan&#x27;s allegations against the company and its agents.&quot;Itinatanggi ng Philam Life ang mga alegasyon ni Gng. Tan at kami ay lubusang nakikipag-ugnayan sa Insurance Commission tungo sa kalutasan ng bagay na ito,” Philam Life said in a statement.(Philam Life denies Mrs. Tan&#x27;s allegations and we are coordinating closely with the Insurance Commission to resolve this matter.)The company also said they remain true to their commitment to help improve the lives of Filipinos.&quot;Mahalaga sa amin ang kanilang tiwala at patuloy naming pangangalagaan ito,” Philam Life said.(Their trust in us is important and we will continue to nurture this.)

A businesswoman on Wednesday complained against Philippine American Life and General Insurance Company after the firm allegedly continued to ignore their complaint against the practice of “churning” done by 3 of its agents.

A businesswoman on Wednesday complained against Philippine American Life and General Insurance Company after the firm allegedly continued to ignore their complaint against the practice of “churning” done by 3 of its agents.

Businesswoman complains against Philam Life for 'churning' insurance policies

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Businesswoman complains against Philam Life for 'churning' insurance policies

Adrian Ayalin,

ABS-CBN News

Published Aug 01, 2018 07:03 PM PHT

Read More:

Philam Life

Mona Tan

Insurance Commission

insurance

Philippine American Life and General Insurance Company

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