MANILA, Philippines - The Quezon City Regional Trial Court has ordered the Department of Finance (DOF) and the Insurance Commission (IC) to temporarily refrain from implementing the proposed capital hikes on the insurance industry.
The court injunction stops Department Order (DO) 15-2012 which, among others, increases the required minimum paid-up capital to P250 million by end-2012 to P1 billion by 2018.
The court finds, however, that there is need to explore the reasonableness of the amount of the minimum paid-up capital requirement being imposed under the DoF order and the reasonableness of the manner by which the same is being imposed.
RTC presiding judge Charito B. Gonzales signed the order. Security Pacific Assurance Corp. filed the complaint.
The original complaint was filed last June, which was followed up in October by a motion to admit an attached supplement.
The original complainants were Security Pacific Assurance Corp., Visayan Surety and Insurance Corp., Finman General Assurance Corp., Milestone Guaranty and Assurance Corp., R & B Insurance Corp., Industrial Insurance Co., Philippine Phoenix Insurance and Surety Corp., Mercantile Insurance Co., Great Domestic Insurance Co. of the Philippines and Insurance of the Philippine Islands Co.
The injunction will stand until a settlement would have been arrived at by the contesting parties, and that the courts would find the “settlement” generally agreeable.
There are 117 insurance companies in the country, including 31 life insurance firms, 81 non-life insurers, one re-insurer, and four composite (life and non-life insurer).