Public safety mutual benefit fund, inc

Date of Publication

2001

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

Public Safety Mutual Benefit Fund, Inc. (PSFMBAI) has shown commitment and high quality service to the uniformed and non-uniformed personnel of the Philippine National Police (PNP) since its establishment in 1988.

PSMBFI currently provides its members three insurance products namely Mutual Benefit Equity Plan (MBEP), Basic Group Term Paper (BGTP) and Special Group Term Insurance (SGTI). For the year 2001, PSFMBAI has 97, 078 members enrolled in the MBEP 24, 865 for the BGTP and 105, 652 for the SGTI. The Non-Uniformed Personnel (NUP)-members including PSFMBAI employees totaled 699. As of December 31, 2000, PSFMBAI is exposed to life insurance risk of over P15 million covering both uniformed and NUP of the PNP.

Total premiums received by PSMBFI amounted to over P291 million since inception. Significant portion came from the SGTI premiums amounting to about P230 million while premiums received for SGTI and BGTP amounted to about P45 million and 17 million, respectively. On the other hand, PSMBFI paid total insurance benefits of about P278 million to 2,414 members.

To date, 19, 151 members are reported to have availed of the loan benefit. Salary/Emergence loans showed a steady demand from members. The Insurance Commission (IC) increased the maximum loan amount to P50, 000 per member. As A result of this move, volume of loan portfolio is expected to increase. In fact, PSMBFI believes that those who pre-terminated their loans will –re-avail of the facility in the near future PSMBFI continues to offer the lowest rate in the market.

Satisfactory performance of PSMBFI was a result of the significant contributions of the Management and employees for the first three years of operations. Current Organizational structure is presented Appendix 1. At present, PSMBFI has a total of eighty employees assigned to eight departments namely administration, Insurance, Accounting, Internal Audit, Electronic Data processing (EDP), Membership, Treasury and Investment.

Monthly remittance is net of 1.5% service fee based on the total collections for the month. In effect, the premium payments that are yet to be invested by PSMBFI are charged of such service fee. The monthly collection for premiums payments for the quarter is around P120 million.

The related service fee amounts to P1.8 million. The significance of the amount serves as a burden for PSMBFI to recover the service fees incurred and at the same time meets the committed rate of return. The set-up of charging a 1.5% service fee on total collections must be reviewed by the management of both PSMBFI and PNP for the benefit of both parties.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE1138

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1v. (various foliations)

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