LOAN BRIEFING

For F I C C O members
 Chapter I

The FICCO “Culture”

The FICCO Culture
 What is the culture of FICCO?
 What makes it different from the
culture of the mainstream
cooperatives?
 What makes FICCO unique?
The FICCO Culture
 Applied to institutions, culture is defined
as “the set of shared attitudes,
values, goals and practices that
characterizes an institution.”
 This set of values has gradually seeped
into almost all aspects of FICCO’s
operations and has shaped its character,
which in turn defined its image and public
perception.
The FICCO Culture
 This culture is actually anchored on
the following values and practices:
 Stewardship and Ownership
 Transparency, accountability and
Democracy
 Common Good

 Recognition of Rights and

Responsibilities
 Service with Personal Touch
The FICCO Culture
 Active Participation of Grateful
Members
 Quality Service

 Volunteerism, not opportunism

 Lean Organization

 Control cost and expenses

 High returns to members

 Aggressive, yet sure-footed

Chapter II

Sources of Funds &

Types of Deposits
Sources of Funds & Types of Deposits

 Internal Sources:
 Share Capital
 Minimum – P 3,000.00 or 30 shares
 Maximum – 20% of Ficco’s total

assets
 Earns dividend @ 9% - 12% P.A.

 Can be used as leverage to loans

 Can not be partially withdrawn

Sources of Funds
 Savings Deposits:
 A. Regular Savings
 Interest @ 4.50% p.a. subject to the
following:
 1% savings protection plan***
 20% withholding tax
 Minimum – average daily deposit of
500.00 pesos
 Can be Withdrawn anytime during
office hours if not encumbered to
loan
 Can be used as leverage to a loan
Sources of Funds
 Savings Deposits:
 Special Deposits:
 Interest @ 4.50% subject to 20% withholding tax
 Can be withdrawn anytime during office hours
 Youth Savers Club
 For children ages 0 to 13 yrs old
 Interest @ 4.75% subject to 20% withholding tax
 Minimum initial deposit is P 50.00
 Membership Fee of P 30.00
 Can be withdrawn anytime during office hours
 The depositor will be given a gift item upon signing
in and gift items will also be given every deposit of
30 times.
Sources of Funds
 Time Deposits
 Subject to 20% withholding tax
 May be used to secure loans
 Pre-termination interest rate shall be based on prevailing
savings rate

Amount Bracket Term Interest Rates

1,000.00 to 30 to 31 days 4.50% per annum

50,000
50,001 to -do- 4.75% per annum
100,000
100,001 to 300 T -do- 5.00% per annum

300,001 to 500T -do- 5.50% per annum

500,001 & Above -do- 6.00% per annum

Sources of Funds
 Installment Savings
 Interest rate – 8% per annum
 Term ranges - 12 to 48 months

 May be used as collateral to loans of up to

95% of actual deposits excluding the

interest.
 Retirement savings
 Interest rate – 8% per annum
 Term ranges – 5 to 20 years

 May be used as collateral to loans of up to

95% of actual deposits excluding the

interest.
Chapter III

Loan Services
Who will qualify for a loan?
 Ficco members who have :
– Attended and completed the prescribed ½
day Pre-membership Seminar (PMS)
– Deposited at least 3,000.00 pesos (30
shares) in his share capital.
– Maintained a monthly deposit balance of at
least 500.00 pesos
– Completed the 4-month probationary period
– The capacity to enter into a contract.
– Gainfully employed or have a visible source
of income from a business not contrary to
Ficco’s principles & philosophies.
How much loan can one member
avail?
 The amount of loan that a member may avail
from Ficco is based on the following:
1. The amount of share capital & savings
deposit he has accumulated with the
cooperative
2. His classification as a member
3. His Character & Capacity to pay
4. His willingness to promote Ficco ideals by
actively recruiting other people to be
members and remind lost & members.
5. And his participation in Ficco activities, such
as the General or Special Assemblies
Membership Classification

 Basis of classification:
1. Monthly depositor
2. Pays loans on the agreed due date &
the agreed amortization
3. Character & Capacity to pay
4. Attendance during General or Special
Assemblies
Membership Classification
 CLASS “A1” :
 Members who have established good
loan track record for at least one year;
 Pay loans on or before due date;
 Monthly depositor;
 With at least 10% increase or P5,000 in
Share &/or Savings deposits whichever is
lower;
 Has attended the last 2 general
assemblies.
 Membership Classification
Classification Share & Savings multiplier

For Regular Loan

If s/a is =>60% of Enc. Dep. x 350%
If s/a is b/n 50-59% of Enc x 325%
If s/a is < 50% of Enc. Dep. x 290%
Class A1 For Seal & Halo
If s/a is =>30% of Enc x 350%
If s/a b/n 15-29% of Enc x 325%
If s/a is < 14% of encumbered x 290%
Membership Classification
 CLASS “A”:
 Members who have established good loan track
record for at least one year;
 Pay loans monthly but avails the 7-day grace
period;
 Monthly depositor;
 With at least 10% increase or P5,000 in Share
&/or Savings deposits whichever is lower;
 Has attended the last 2 general assemblies.
 Membership Classification
Classification Share & Savings multiplier

For Regular Loan

If savings is >=50 to Enc x 325%
If savings b/n 40-49% of Enc x 300%
If s/a is less 40% of enc x 275%
Class A For Seal & Halo
If savings is =>30% of Enc x 325%
If savings b/n 15-29% of Enc x 300%
If s/a is < 14% of encumbered x 275%
Membership Classification
 Class “B”:
 Members whose loan record is less than 1 year,
or
 Pay loans within the month but exceeds the 7-
day grace period;
 Failed to deposit from one to two months during
the 4-month reckoning period;
 Has attended the last general assembly.
 Loan Multiple:
 Share x 190%
 Savings x 200%
Membership Classification
 Class “C”:
 Members who failed to pay loans for two
months during the term of the loan;
 Failed to deposit for two months during
the 4-month reckoning period;
 Has attended the last general assembly

 Loan Multiple:
 Share x 165%
 Savings x 185%
Membership Classification
 Class “D”:
 Members who failed to pay loans for two
months during the term of the loan;
 Failed to deposit for two months during
the 4-month reckoning period;
 Failed to attended the last general
assembly
 Loan Multiple:
 Share and savings x 150%
Membership Classification
 Class “E”:
 Members who failed to pay loans
for three months or more during
the term of the loan;
 Failed to deposit for one or more
months during the four-month
reckoning period.
 Loan Multiple:
 Share & savings x 100%
 Interest on loan rates & Service Fees
Loan Term Interest Service Fees
Less than 1 year 9% p.a. 1.00% for the whole term

12 months 9% p.a. 1.75% for the whole term

13 to 24 months 9.5%p.a. 2.25% for the whole term

25 to 36 months 10% p.a. 2.75% for the whole term

37 to 48 months 10.5%p.a 4.50% for the whole term

49 to 60 months 11% p.a. 5.50% for the whole term

 Applicable to Major Loan types with monthly amortization

 Interest on loans shall be paid together with the monthly
amortization of the loan.
 Interest on loan rates & Service Fees
 For Regular Agricultural Loan (RAL)

Crop type Term (Maximum) Interest Service Fee

Rice & Corn 6 months 7% for 6 2.00%
Production months
Sugar Cane 15 months 14% p.a. 5.00%
Cassava 12 months 14% p.a. 5.00%

• Payable upon maturity of the loan

Loan Types per membership
classification
For class B, C & D - First Time Borrowers
 (Members applying loans after the 4-month
probationary period).
1. Regular Loan – Either Provident or Productive or
Regular Agricultural Loan
 Maximum of P25,000.00 without collateral. Only
share & savings are encumbered.
 Maximum amount with chattel + Share & Savings
as collateral is P50,000.00
 Maximum amount with real estate + Share &
Savings as collateral is P2 million.
 Maximum term is 36 months for loans of less
than P50,000.00 and 60 months for loans
P50,000.00 or more.
Note: LAD applied within the probationary period are not
included in the classification consideration.
For Class B (re-loan)
1. Regular Loan – Either Provident or Productive or
Regular Agricultural Loan
 Maximum of P60,000.00 without collateral. Only
share & savings are encumbered.
 Maximum amount with chattel + Share & Savings
as collateral is P100,000.00
 Maximum amount with real estate + Share &
Savings as collateral is P2 million.
 Maximum term is 36 months for loans of less
than P50,000.00 and 60 months for loans
P50,000.00 or more.
2. Petty Cash Loan
3. Rice Loan
For Class A1 and A members:

1. Regular Loans
2. Housing Related Loans
3. Business Related loans
4. Financing Loans
5. Medical Loans
6. Travel & Tour Loan
For Class A1 and A members
1. Commodity Loans
2. Petty Cash Loan
3. Jewelry Loan
4. Back to back loans
5. Regular Agricultural Loan
(RAL)
OTHER POLICIES
Loan Requirements
 Fully accomplished Loan Application
 Two co-makers**
 Utility bills (Light, water, telephone, cable
whenever applicable)
 Proof of source of income/ pay slip/ etc.
 Residence Certificate – current year
 For Chattel:
 Certificate of ownership/ Affidavit of ownership or
O.R. & CR for motor vehicles
 For Real Estate
 Original Title, Tax Clearance, Tax Declaration, Sketch
Plan, Vicinity Map, Certificate of non-tenancy for agri-
land, SPA if the loaner is not the owner
Collateral & Loan Security
Personal Properties:
 Household appliances not more than 2
years and motorcycles not more than
3 years from purchase for loans up to
P200T
 Motor Vehicles not more than 3 years
from original purchase for loans up to
P 500T for brand new & P300 T for
surplus
 Medical and/or Dental equipment,
heavy equipment or farm machineries
not more than 5 years from purchase
for loans up to P 500T
Collateral & Loan Security

Real Estate properties:

 Residential, Commercial, Industrial or
Agricultural Lots for loans up to P 2 M.

Note:
All properties used as collateral must be free from liens &
encumbrances.
 Collateral & Security
The use of PDC as security to a loan maybe allowed
provided:
 Member does not request to hold or postpone
payment of the check more than once in the entire
length of the loan
 The member’s check has not bounced due to
insufficiency of funds.
 The member will not redeem the PDC at Ficco & is
actually doing transaction with his bank.
 The checking/current account of the member is
existing for at least 1 year with good tract record
in his bank.
 Class “B, C & D” members are not allowed to use
PDC’S as “collateral” to loans.
Co-Makers
 Who will qualify as co-makers?
 Members who:
 Have share capital deposit of at least

P3,000.00 and has completed the 4-month

probationary period.
 Whose accounts are updated and not

restructured
 Have not signed as co-maker to two (2) other

member- borrowers
Note: Class A & A1 members are allowed to sign as co-
makers to a maximum of three (3) times while Class B, C,
D & E are allowed to sign up to two (2) other borrowers
Co-Makers
 Class A1 & A members will require only
one co-maker except when these
members avail of the following:
 Class “A1” – P120,000.00 w/ 2 class “A1”
or “A” members as co-makers
 Class “A” - P100,000.00 w/ 2 class “A1”
or “A” members as co-makers
 Class “B”, “C”, “D” & “E” members
require 2 co-makers regardless of the
amount of loan requested.
“Bundak” Deposits
 Any sizable deposit (more than 10% of
the member’s existing deposit) made by
a member to cover deficiency in his
deposit requirement is called a “Bundak”
deposit.
 Class “B-FTTB”, “C”, “D” & “E” members
who will make a “Bundak” deposit will
have to wait for one & one-half month or
45 days before he will be allowed to apply
for a loan.
 Class “A1” & “A”, “B-re loan” are
exempted from the “Bundak” deposit rule.
Encumbered Deposits
 Deposits used as equity to a loan are
called “Encumbered Deposits”
 These deposits (either share or savings or
both or Time Deposits as well as
Retirement or Installment Savings) are
not withdrawable** until such time that
the loan for which it was used as an
equity have been fully paid.
** except for LAD where the encumbered deposits is
based on the loan balance
Delinquency
Delinquency

When are loan accounts

considered delinquent?
 When Loan accounts are paid
after the agreed amortization
Due Date.
 When Loan Payment is lower
than the agreed Amortization.
 Delinquency
 Notices & Demand Letters

No. of missed Type of Notice/Action to be

Payment/s taken
1 month Collection Notice
2 months 1st Demand Letter
3 months Final Demand Letter
4 or more Account is Turned over to
months the Legal Department
Delinquency
 If an account becomes delinquent, a
3% fines will be collected based on
the monthly amortization until the
3rd month of the delinquency. The
3% fines will be collected based on
the entire loan balance starting
on the 4th month of the
delinquency.
Delinquency
 Offsetting of Delinquent Accounts:
 Why are delinquent accounts offsetted
against the members deposits?
 Offsetting reduces Ficco’s expenses on
the provision for bad debts.
 It also diminishes the member’s
expenses on the penalties.
 It is a last resort in collecting delinquent
accounts.
Delinquency
 Offsetting of Delinquent Accounts:
 When should delinquent accounts be
offsetted against the members deposits?
1. Delinquent loans with terms of three (3)
months or less will be offsetted 30 days after
maturity.
2. Delinquent loans with terms of more than
three (3) months will be offsetted if the
arrearages exceeded three (3) monthly
amortization for monthly amortized loan &
one unpaid amortization for quarterly &
semi-annual amortized loans.
 Delinquency
Members whose accounts are zeroed
out due to offsetting of Past Due Loans
& those who were turned over to the
legal department but have eventually
paid off will only be admitted for re-
membership after the approval of the
BOD of Ficco based on the
recommendation of the Past Due
Committee.
Delinquency
 Co-makers of delinquent accounts will also be
sent notices and demand letters.
 In case a member applies for a loan but is a co-
maker to a delinquent account or an account
already at the hands of the legal counsel but not
yet filed in the court, the member will be
requested to follow up the payment of the said
account and the loan request will be granted,
however, if the account has already been filed in
court, the member/co-maker will have to pay the
entire loan balance including all the charges
before the requested loan will be released or if
the member/co-maker wishes, the delinquent
account will be deducted from the proceeds of his
loan.
Chapter IV

SPP & LPP

Savings Protection Plan (SPP) & Loan
Protection Plan (LPP)

 What are these plans?

 Savings protection plan (SPP) is a
facility that will help a member’s family
financially in case of death or total
disability of the member.
 Loan protection plan (LPP) is another
facility that will help ease the burden of
paying a member’s loan in case of his
death or total disability.
Savings Protection Plan (SPP) & Loan
Protection Plan (LPP)
 How do these plan work?
 In the case of the Savings Protection
Plan or SPP, Ficco will pay the
member’s family an amount
corresponding to his total share and
savings in case of death or total
disability based on the following
policies, viz:
• For members accepted before July 1, 2006, SPP is
100% of the members total share & savings but
not to exceed 750,000.00 pesos.
• For members accepted on July 1, 2006 onwards,
the SPP is 25% of the total share & savings but
not to exceed 750,000.00 pesos.
Loan Protection Plan (LPP)
 LPP Bracket

Member’s Premium per 1000

Age loan
18 to 33 yrs P 0.65
34 to 43 yrs P 1.00
44 to 48 yrs P 1.50
49 to 53 yrs P 2.00
54 to 59 yrs P 2.50
60 & above P 3.00
Loan Protection Plan (LPP)
 Ifa person is more than 15
years as a member of Ficco the
Bracket amount for LPP is One
Peso per One Thousand Loan
(P1.00/1000) regardless of age
of the member.
 Chapter V

Mutual Aid Fund (MAF)

Mutual Aid Fund (MAF)
 WHAT IS MUTUAL AID FUND?

It is a fund that provides

financial assistance to
members in case of
hospitalization, disability or
death of the enrolled member
or his relatives
Mutual Aid Fund (MAF)

Membership to this
Program is Voluntary!
What are these plans?

1. NON-MATERNAL
HOSPITALIZATION
PLAN
Mutual Aid Fund (MAF)

MATERNAL PLAN
Mutual Aid Fund (MAF)

DEATH AID PLAN

Mutual Aid Fund (MAF)

TOTAL PERMANENT
DISABILITY PLAN
Non-maternal Contribution
 Member - P120/year
 Spouse - 130/year
 Children - 130/child/year
maximum of 4 children
 Parents - 180/parent/year
Non-maternal benefit

P 700.00 per day for 5 days

in a year
 For MAF members and
enrolled beneficiaries.
Maternal Contribution

P 250.00/year
 Optional only to female
members.
Maternal Benefits

For Normal Delivery:

 Trained hilot – P 1,100.00

 Midwife/Nurse 1,250.00
 Doctor/Hospital 1,750.00
For Caesarian section:
P700.00 per day maximum of 5
days.
Death Aid Contribution

For every death of an enrolled

member of the MAF, a bonafide
member will contribute:
# of yrs as member contribution
 Less than 2 years – P2.50/death
 2 – 5 years - 1.50/death
 Above 5 years - .50/death
Death Benefits

 Member - P 35,000.00
 Beneficiaries - 8,000.00
CHAPTER VI
Compulsory membership

Membership to the MBA is

compulsory for the following:
 New members joining FICCO
starting September 1, 2007
 Old members who borrow more
than twice** their deposit
Payment of membership & premiums
 After the PMS, new members who
want to join FICCO will be required
to pay the following:
 FICCO membership fee -P 50
 Initial Share Capital - 100
 Initial Savings Deposit - 100
 MBA membership fee - 100
 1st month premium - 90
Total P 440
Payment of membership & premiums

 Upon loan application of more than

twice* his deposit, an old member
who is a non-MBA member is
required to pay the following;
 Membership fee - P 100
 6 mos. Premium - 540
Total 640
 RULES AND REGULATIONS

 BENEFITS
LIFE INSURANCE BENEFITS

CAUSE OF DEATH OR LEGAL

LENGTH OF MEMBERSHIP TOTAL AND PERMANENT MEMBER DEPENDE
DISABILITY NTS

Due to Natural Death 2,500.00 None

LESS THAN 3 MONTHS
Due to Accident 20,000.00 5,000.00

Due to Natural Death 5,000.00 None

3 MONTHS BUT LESS
THAN 12 MONTHS
Due to Accident 20,000.00 5,0000.00

Due to Natural Death 40,000.00 10,000.00

12 MONTHS OR MORE
Due to Accident 80,000.00 10,000.00
BENEFITS
 Death or Total and Permanent
Disability Benefit
 Total and permanent disability (TPD)
shall mean disability caused by bodily
injury or disease which prevents the
member or his/her legal dependents
from engaging in any gainful activity;
and,
 must continue uninterruptedly for at
least six (6) months
Death or Total and Permanent
Disability Benefit
 There are two types of TPD coverage:
2. Disability with dismemberment – The loss of arms, or
both legs, of one arm and one leg, or of both eyes,
shall be considered total and permanent disability.
Loss of both arms and both legs shall mean
dismemberment by amputation of the entire hand or
foot; with respect to eyes, entire and irrecoverable loss
of sight.
3. Disability without dismemberment – If a member or
his/her legal dependent becomes sick or meets an
accident without dismemberment resulting to complete
inability to engage in any gainful employment and
becomes bedridden, he/she can be considered as total
and permanently disabled if after six (6) months the
health condition has not improved as confirmed by a
competent doctor.
Accidental Death Benefit
 Accident is defined as a loss as a direct
result, independently and exclusively of
all other causes, of bodily injury effected
solely by external, violent and accidental
means of which, except in the case of
drowning or if internal injury revealed by
an autopsy, there is evidence of a visible
contusion or wound on the exterior of the
body occurring within one hundred eighty
(180) days from date of such injury.
Member’s Equity Value
 After three (3) full years of continuous membership in
FICCO MBA INC, a member shall be entitled to an
equity value equivalent to at least FIFTY PER
CENTUM (50%) of the total membership
dues/contributions collected from him/her. This is
payable upon termination of his/her membership from
FICCO MBA INC. except upon death or total and
permanent disability.
 Upon reaching the termination age of seventy, the
member shall be entitled to payment of the member’s
equity value. For unclaimed member’s equity value
after reaching seventy-one, interest shall be credited to
the equity value at a rate to be determined by the
Board of Trustees but in no case less than 2% p.a. per
year.
MEMBERSHIP
 Applicants must be at least eighteen (18) years
old but not more than sixty (64) years old as of
the enrollment date. Only those applicants who
can meet all of the requirements stated on the
prescribed application form shall be eligible for
membership.
 Any willful misstatement of age in the
application that would render a person eligible
for coverage when he/she would otherwise be
ineligible shall be sufficient cause for the
cancellation of one’s membership in the FICCO
MBA INC. at any time such misstatement is
known. FICCO MBA INC. will only refund all
contributions paid by the disqualified member.
MEMBERSHIP
 The right to designate beneficiaries is reserved to every
member of FICCO MBA INC., who may, at anytime, designate
a new beneficiary or beneficiaries. Such request for change
of beneficiaries must be made in writing and signed by the
member under oath, then submitted to the FICCO MBA INC.
office or designated authorized collection centers.
 When a member dies without any designation of
beneficiaries, the benefits shall be awarded to the legal heirs
based on law.
 In case of multiple, overlapping applications for membership
only the initial application shall be considered valid. Upon
discovery of multiple overlapping memberships of one
person, the additional certificates of membership shall be
automatically cancelled and the contributions for these
overlapping memberships shall be refunded. In case of
multiple claims for a single event by one member, benefits
will be paid only once as defined and due under the initial
membership
The member’s legal dependents shall
be defined as follows:

 If a member is married, his/her

legal dependents are:
 legal spouse
 three (3) single and biological and/or

legally adopted children, TWO weeks old

but not more than 21 years old
 three (3) biological children over 21 years

old, single, who are disabled and

incapacitated to work.
member’s legal dependents:
 If a member is single without biological
children, his/her legal dependents are
his/her biological parents not more than
60 years old
 If a member is single (unmarried) but
with children, his/her legal dependents
are:
 three (3) single and biological and/or legally
adopted children, TWO weeks old but not more
than 21 years old
 three (3) biological children over 21 years old,
single, who are disabled and incapacitated to
work.
SUICIDE AND OTHER EXCLUSIONS

 FICCO MBA INC. will not be liable if the

member and/or his/her legal dependent
dies by suicide within two (2) years after
the effective date or date of last
reinstatement of the Certificate of
Membership, provided, however, that
suicide committed in state of insanity will
be compensable regardless of the date of
commission.
 Where suicide is not compensable, FICCO
MBA INC.’s liability shall be limited to the
return of all contributions paid.
PRE-EXISTING CONDITION
 Pre-existing condition of member: To maintain
low contribution rates and to safeguard the funds,
FICCO MBA INC. is not liable to any loss (death, total
and permanent disability) occurring during the first
year of membership or within six (6) months from the
date of last reinstatement except if caused by
accident and/or diseases acquired within that period
as certified by competent physician other than TWO
THOUSAND FIVE HUNDRED PESOS (PhP2,500)
gratuity for loss occurring less than three (3) months
from effectivity date of insurance coverage or FIVE
THOUSAND PESOS (PhP5,000) gratuity for loss
occurring at least three (3) months but less than
twelve (12) months from effectivity date of insurance
coverage in case of member’s death or total and
permanent disability.
PRE-EXISTING CONDITION
 Pre-existing condition of legal dependents:
To maintain low contribution rates and to
safeguard the funds of the FICCO MBA INC.,
FICCO MBA INC. is not liable to any loss (death,
total and permanent disability) occurring during
the first year of membership except caused by
accident in case of a legal dependent’s death or
total and permanent disability.
 Pre-existing condition is a condition for which
the member received treatment or has consulted
a physician for treatment or has been taking
medications during the twelve months prior to the
effective date of membership or six (6) months
from the date of last reinstatement.
VOLUNTARILY RESIGNED MEMBERS RE-
APPLYING FOR NEW MEMBERSHIP

 Members that have formally resigned their

membership and have received their member’s
equity and then re-apply for new membership
shall be considered as new members.
 In such a case the previously accrued
membership term and benefits may not be
carried over towards credit in the new
membership.
 Members that have relinquished their
membership and then re-apply for new
membership shall once again be subject to the
pre-existing condition, as well as all of their
covered legal dependents.
FEES AND CONTRIBUTIONS

 Members shall be charged TWENTY ONE PESOS

(PhP21.00) contribution per week for benefits
described in Section A. Benefits above.
 Members shall be charged ONE HUNDRED PESOS
(PhP100.00) as a one-time application fee in order to
cover the expenses incurred in processing the
application. This fee is not refundable, nor will it be
included for purposes of determining the member’s
accumulated and refundable contributions.
 The fees and contributions may be adjusted by the
Board of Trustees as may be necessary to maintain
the funds of FICCO MBA INC. at a level adequate to
meet its benefit obligations or commitments under
the insurance plan. Any change in the contribution or
fee is subject to approval by the Insurance
Commission.
FEES AND CONTRIBUTIONS

 Contributions may be paid by direct remittance to the FICCO

MBA INC. Office or designated authorized collection centers
either by Postal Money Order or in cash. If paid by Postal
Money Order, contributions are considered paid on the date
of Postal Money Order and if paid in cash, the date of receipt
in the FICCO MBA INC. office or authorized collection center.
 Postal Money Order for group remittance of the weekly
contributions shall be accompanied with a list of individual
remitters. In the absence of said list, the Money Order shall
not be considered as contribution payments.
 Payments and/or instruments for payment of the weekly
contributions made and executed not in accordance with the
Rules and Regulations of the FICCO MBA INC. shall not be
accepted and if inadvertently accepted shall be considered
null and void and will be refunded.
EFFECTIVITY

 Membership in FICCO MBA INC. shall take effect

immediately upon payment of the first
contribution and approval of the application for
membership by the Board or the official so
delegated by the Board.
 A certificate of membership containing the date
of effectivity of membership and a summary of
benefits and excerpts of the Rules and
Regulations of FICCO MBA INC. shall be issued
to each and every member upon approval of the
application for membership.
GRACE PERIOD

 Any member who fails to pay his/her contribution

shall be given a grace period of thirty-one (31) days
within which to remit the contributions.
 In case of death or total and permanent disability of
the insured or legal dependent during the grace
period, the balance of the contribution in arrears shall
automatically be deducted from the benefits payable.
 If after the thirty-one (31) day grace period no
contribution payments are received by FICCO MBA
INC., the membership shall lapse and in the event of
death or disability no benefit will accrue to the
member or to the beneficiaries of the deceased
member other than the member’s equity value.
TERMINATION OF COVERAGE

 Upon death or total and permanent

disability of the member;
 Upon resignation from FICCO MBA
INC.;
 Upon expiration of the grace
period if no payment is received by
then;
 Upon withdrawal of the equity
value on the insurance certificate;
TERMINATION OF COVERAGE
 If the member is terminated with cause
by FICCO MBA INC.;
 Upon reaching the exit/termination age of
70.
 Dependent’s coverage terminates upon the
termination of the member’s coverage or at
age 70 for the legal spouse, if married, or at
60 for the member’s parents, if single,
whichever comes earlier. Termination of
coverage shall be without prejudice to any
claim arising prior to such termination
REINSTATEMENT OF MEMBERSHIP
AND COVERAGE
 Membership may be reactivated provided the
member is in good health and fulfills all of the
requirements as stated in the Reinstatement
Declaration form. The reinstatement shall take effect
upon payment of the required weekly contributions in
arrears with interest at the rate of five per cent (5%)
per annum.
 If the member cannot afford to pay all the
contributions in arrears, he/she may pay only one
weekly contribution and his/her membership will be
reactivated. But the number of days he/she was on
leave/resigned will be deducted in computing the
effective number of years of his/her membership.
 The member is eligible for reinstatement within a
period of three (3) years from the date of lapse. After
the three year period, the membership is cancelled.
NOTICE AND PROOF OF CLAIM
 When a member dies or becomes totally and
permanently disabled or upon the death or total
and permanent disability of the member’s legal
dependents, the member or the beneficiary shall
notify the Benefits Review Committee through
the Branch Manager to which said member
belongs of such death or total and permanent
disability, stating the full name and address of
the deceased or disabled, the cause of death or
total and permanent disability, the date of death
or total and permanent disability, the address
and full name(s) of the beneficiary/ies. The
claim for benefits should be filed within six (6)
months after death or total and permanent
disability with any FICCO MBA INC. office.
NOTICE AND PROOF OF CLAIM
 The benefits described in Section A. Benefits above
shall be paid upon presentation of death or total and
permanent disability certificate, sworn statement of the
beneficiaries establishing their lawful status as such,
and the special power of attorney executed by the
beneficiaries as to who among them shall receive the
payment in the event that there is more than one
beneficiary.
 The Member’s Equity benefit shall be paid upon
presentation of the member’s birth certificate to prove
that he/she has attained the exit age of 70.
 Failure to give notice and proof as required, will not
invalidate nor diminish the claim if it is shown not to
have been reasonably possible to give such notice or
proof and that each was given as soon as was
reasonably possible.
ASSIGNMENT
 FICCO MBA INC. will not be bound by any
certificate of membership unless a copy of
the assignment and the written consent of
every assignee, or other similarly affected
person, if any, are filed at the FICCO MBA
INC. Head Office and duly endorsed on
the certificate. FICCO MBA INC. assumes
no responsibility for the effect, sufficiency
or validity of any assignment.
NON-TRANSFERABILITY CLAUSE

 TheCertificate of
Membership is non-
transferable.
WAIVER OF ARTICLE 1250 OF THE
CIVIL CODE
 It is hereby declared and agreed that the
provision of Article 1250 of the Civil Code
of the Philippines which reads:
“In case of extraordinary inflation or deflation of
the currency stipulated should supervene, the
value of the currency at the time of
establishment of the obligation shall be the
basis of payment…”
shall not apply in determining the extent
of the liability under the provisions of the
certificate of membership.
PENAL PROVISION

 Any member of FICCO MBA INC.,

who through malfeasance,
misfeasance, or nonfeasance allows
a spurious claim to be paid,
including the claimant, will be
punished accordingly to whatever
penalty the Board of Trustees may
so decide and the amount of
indemnity paid must be refunded to
FICCO MBA INC.
AMENDMENTS TO RULES AND
REGULATIONS

 Any amendment/s made to this

Rules and Regulations is/are subject
to approval by the Insurance
Commission.
IMPORTANT NOTICE

 The Rules and Regulations of FICCO MBA INC.

embodies the terms and conditions of the
insurance described above. A copy of the Rules
and Regulations is kept in the main office of
FICCO MBA INC. and is available to the member
for inspection during its regular office hours.
 The Insurance Commission, with offices in Manila,
Cebu and Davao, is the government office in
charge of the enforcement of all laws relating to
insurance and has supervision over mutual
benefit associations. It is ready at all times to
render assistance in settling any controversy
between a mutual benefit association and a
member relating to insurance matters.
FIN