Insurance company misses deadline on capital defic

The CICI General Insurance Corp. failed to meet a Sept. 3 deadline for the submission of documentary proof that it could cover its deficiency of P59.426 million.

However, the Insurance Commission (IC) is inclined to give the Filipino-owned non-life insurance company up to Friday to complete all the requirements or face administrative sanctions including the permanent cancellation of its working license.

The company is now operating without a license after the IC refused to renew it. Such situation is tolerated by government as long as the company services its existing clients although it is not allowed to solicit new accounts.

Company officials said they would be fulfilling their capital impairment and margin of solvency deficiency through dacion en pago (payment in kind) rather than in cash.

The commission instructed CICI General Insurance to submit copies of transfer certificates of the properties. Likewise it required appraisals of the properties by an independent and reputable appraiser, and proof of tax payments of said properties.

Officials said that the non-life firm submitted documents Monday morning but initial findings point to a shortfall of roughly P10 million.