IC refutes ‘inaction’ in case against Philam, 3 agents

THE Insurance Commission (IC) has assured the public that all cases falling under its jurisdiction are fully investigated and dealt with in accordance with existing laws and regulations, and such diligence is being exerted in the handling of the administrative case filed against Philippine American Life and General Insurance Co. (Philam Life).

The IC was responding to the statements of one Mona R. Tan, who deplored the alleged inaction and delay of the IC during her interview aired on Wednesday.

“This commission assures the public that all cases falling under its jurisdiction are fully investigated and dealt with in accordance with existing laws and regulations,” the IC said in a statement.

The IC pointed out that based on its records, Tan filed an administrative case around in February 2017 against respondents Philam Life and three of its agents on the grounds that the method of business of the respondents is such as to render its proceedings hazardous to the public or its policyholders.

Tan’s case against Philam Life and agents Leticia Ang, Vicente Ang and Ernesto Lim before the IC stems from the practice of terminating insurance policies and creating new ones to generate more commissions. An estimated P101 million worth of policies were manipulated.

The IC said that, in line with the commission’s rules of procedure, all parties have undergone the regular stages of an administrative proceeding from filing of the complaint until the conduct of mediation proceedings and pretrial.

Several issues were raised by both parties in addition to requests for postponement filed by both parties on separate occasions, the IC said.

A hearing is scheduled on August 28, 2018, for the initial presentation of the evidence by the complainant.

“It is, thus, regrettable that this commission is being accused of inaction and delay. Nevertheless, in view of the pendency of the case, this commission deems it proper and appropriate not to comment on the merits of the case and will let the process run its course,” the IC added.

According to the IC, Philam Life will continue to comply with the process.

“In this regard, this Commission urges the parties involved and the public from forming any speculations regarding this matter in order to prevent any negative impact on the insurance-agency sector and the insurance industry as a whole,” the IC said. The IC added that it will continue to be steadfast in the performance of its mandate to promote the growth and financial stability of the insurance industry, and to safeguard the rights and interest of the insuring public.

“Rest assured that this commission does not and will not tolerate any unethical practices in the insurance industry,” it added.

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Rea Cu

Rea Cu is a graduate of Assumption College-Makati with a Bachelor's degree in Communications. She majored in Advertising and is currently the finance reporter of the BusinessMirror.
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