Manila policemen who have failed to receive their endowment pay after the maturity of their insurance policy are now seeking clarification from the Securities and Exchange Commission (SEC) over the liquidity of Primanila Plans, Inc., not Prime Manila Plans as earlier reported.
An endowment pay is the sum of money directly given to the policy holder after the maturity of the insurance policy.
The policemen said they are also thinking of filing a case against Primanila.
“We fear this company is already bankrupt and might be using the money of their new policy holders to bankroll its day to day operations,” they said.
Eduardo Madrid, owner and president of Primanila, called up The STAR to point out some errors in the news, including the name of his company, which appeared last May 27. He said the news might create a bank run due to panic from policy holders. He also insisted that his company is not a pre-need firm.
However, he failed to state the reason for his failure to pay the endowment of policy holders, except to say that the payment is already forthcoming.
The complainants told The STAR they had gone to the Insurance Commission to look into the financial status of the company, but were told that their problem should be directed to the SEC.
Some 100 complaining policemen said representatives of the Primanila Plans, Inc. with office address at Buendia, Makati City had sweet-talked them into getting an insurance policy with maturity of from five to 10 years.
Primanila reportedly offers endowment of P10,800 for five years, P14,000 for seven years and P20,000 for 10 years.
Most of the complainants said they were being deducted P298 per month since their membership in 1999. However, when their policy matured after five years and after surrendering their policy for its cash value, Primanila failed to pay them despite repeated demands.
Other policemen whose policies have matured said they have been following up on their endowment pay for more than a year but Primanila repeatedly promises that their payment is being readied. – Nestor Etolle