Philam Plans backs protection fund

Philam Plans president and chief executive officer Eliseo Dizon Jr. echoed recently the Securities and Exchange Commission’s (SEC) proposal to set up a protection fund for pre-need planholders.

The proposal was authored by the government after reports came out on the CAP trust fund deficiency of P2.59 billion. Under the proposal, pre-need firms would be required to contribute to the fund, which pre-need investors can turn to when their pre-need firm goes bankrupt.

"We in the pre-need industry should always look out of the interest of our planholders. They invest in us their hard-earned money and it is criminal to take advantage of their trust," Dizon said.

He said that the protection fund can act as assurance for pre-need investors to get the full benefit of their plan. This can unnecessarily avoid having displaced planholders in the event of business closure.

Dizon is the former chief of the Philippine Federation of Pre-Need Plan Companies Inc. (PFPCCI). Philams Plans recently announced a 19.55 percent growth in its funds, now amounting to P5.1 billion as of April 2002. It is reportedly the highest trust fund for a company in only its 13th year of operations.

Latest reports indicate Philam Plans has overtaken rival College Assurance Plan (CAP) as of April 2002 based on over-all plan sales. It registers a P2.8-billion total sales with a 26.93 percent market share, besting other leaders Prudentialife Plans and CAP as well as 74 other pre-need companies.

For the first time, Philam Plans was also able to conquer the education plan market with P1 billion in sales, outdoing education plan bigwig CAP. It also leads in the pension plan category and maintains a top three standing in life plan sales.

Philam Plans is affiliated with two industry giants; Philippine American Life and General Insurance Company (Philamlife), the number one life insurance company; and American International Group (AIG), the leading US-based international insurance organization and the largest underwriter of commercial and industrial coverages in the United States.