The Philippines’ Insurance Commission (IC) has placed Prime Care Kaagapay Life Plan Inc. under conservatorship, after an investigation revealed suspicions of fraud in the pre-need company’s financial documents.
In a statement, the regulator said that the firm had submitted “suspicious” and “fraudulent” bank documents during its application to renew its licence to operate. The IC also issued a show cause order to Prime Care, demanding the company explain itself, the Philippine Daily Inquirer reported.
According to Insurance Commissioner Dennis Funa, the bank certificates that Prime Care, which sells funeral plans, had submitted to prove it had the required PHP100 million (around US$2 million) in capital were fraudulent. The manager of the bank in question also flagged the documents as spurious.
Funa added that the bank account indicated in the documents had already been closed.
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As a result, the IC placed Prime Care under conservatorship. The regulator will take over the company’s assets and management in order to ensure the protection of its policyholders.
“While we cannot disclose the details of the ongoing investigation until its completion, we assure the public that we are carefully looking into all possible violations of the responsible officers and hold them liable,” Funa said in the statement.
