IC closes pre-need firm Danvil Plans

THE INSURANCE COMMISSION (IC) has closed pre-need firm Danvil Plans, Inc. following nearly a decade of liquidation proceedings.

The company has been released from the IC’s regulation and will continue doing business under a different name and purpose other than pre-need or insurance-related endeavors, according to an IC directive dated Jan. 21.

“Henceforth, it will be the full responsibility of Danvil to direct the audit of its remaining corporate assets and liabilities should it find it necessary or in compliance to certain government reportorial requirements and to address its own corporate issues, if any,” the IC said.

Danvil Plans submitted its application for formal closure on Jan. 8, 2021. The company was placed under liquidation in December 2014 after it was issued a stay order in October 2013 and put under conservatorship in October 2010.

The IC said liquidation proceedings reached almost 10 years due to unclaimed checks. Part of the requirements for Danvil Plans’ closure was the distribution of P2.23 billion in payments of maturity benefits to planholders.

“The distribution of matured plans (100% of maturity value) was approved by the order dated Dec. 16, 2015. The proposal for the final distribution was approved by the issuance of the Directive dated Feb. 24, 2016,” the IC said.

“Distribution has been ongoing for almost ten years now and no new planholder incident emerged during the said period aside from the request of those with lapsed and pre-terminated plans. The IC and the Liquidator exerted all possible means to speed up the said distribution including various publications and communications with the planholders. Had it not for the said delay in claiming the checks, liquidation proceedings should have been completed and closed.”

It added that Danvil Plans has already distributed 68% of benefit checks representing the values ordered by the IC for immediate distribution.

Following its closure, the company will transfer the remaining funds to the IC for distribution. — Aaron Michael C. Sy