Guidance for the Implementation of Circular 683 on the Marketing, Sale and Servicing of Microinsurance Products

BInexo SeNrRaL NG PILIrrINAS OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR MEMORANDUM NO. M.aOT1. 027 To ALt THRIFT, RURAT AND COOPERATIVE BANKS Subject Guidance for the lmplementation of Circular 683 on the Marketing, Sale and Servicing of Microinsurance Products For the purpose of implementing Circular 683 (dated 23 February 20L0) on the presentation, marketing, sale and servicing of microinsurance products, in conjunction with Insurance Commission Circular 1-2010 (29 January 2010), microfinance clients are defined as follows: L. Individuals with a microfinance loan or microcredit as defined in the Notes on Microfinance contained in Circular 694 (L4 October 20L0), or 2. Individuals with a microfinance savings deposit account or microdeposit as defined in the Notes on Microfinance contained in Circular 694 (L4 October 2010), or 3. Other existing bank clients who are classified by the bank as poor or low- income.l For information and guidance. ft*'$'#r Deputy Governor !! May 2011 ' Poor or low-income clients are those with annual family income below the national average based on the latest available National Statistics Office (NSO) Family Income and Expenditures Survey (FIES). The 2009 national average annual family income is PhP 206,000.