On April 3, The Philippines’ Insurance Commission released Insurance Memorandum Circular (IMC) No. 2023-02 to amend Sections 5 and 6 of IMC No. 2023-01 entitled “Implementing Rules and Regulations of Republic Act No. 11765” otherwise known as “The Financial Products and Services Consumer Protection Act (FPSCPA)”. The amended IMC took effect on March 28, 2023, after its public circulation.
Section 5 on Commission Evaluation now reflects that a) the Commission shall evaluate Claimant Assistant Request and its supporting documents within seven (7) working days from receipt; b) Conduct mediation upon the consumer’s request or if the concerns cannot be addressed by the Insurance Commission-Regulated Entity (ICRE); and c) refer to ICRE for comments if “the concerned ICRE has not yet acted on the claim with finality.” Section 6 on Mediation Proceedings reflects that a) there is a maximum of three (3) mediations for each complaint; b) if the parties compromise, the complaint will be terminated; and c) proceedings will be terminated after 3 mediations, and if there is no agreement yet, consumers may file a claim under Rule lX and/or an administrative case under Rule X.
In November 2022, the Bangko Sentral ng Pilipinas (BSP) adopted the Amended Regulations and Guidelines on Financial Consumer Protection (FCP) Framework to implement Republic Act No. 11765 on FPSCPA. This Act covers financial products or services including but not limited to savings, credit, insurance, investments, and digital financial products. The objective of the Act is to establish a Consumer Protection Risk Management System through transparency, protection of client information and protection of consumer assets against fraud and misuse, among other measures.
