The Insurance Commission on Wednesday issued a stay order, suspending all payment claims against CAP General Insurance Corp., a non-life insurer controlled by the Sobrepeña family.
CAP Gen, which was placed under IC receivership in June 2015, used to provide insurance services for motor vehicles, fire/property, contractor’s all risks, aviation, marine, electronic equipment, golfer’s, personal accident and comprehensive general liability. It had an authorized capital stock of P300 million.
The IC said in a notice of stay order dated April 26, 2016 all payment claims against CAP Gen were “stayed and suspended until further notice.”
“All actions or proceedings, in court or otherwise, for the enforcement of all claims, whether for money or otherwise, against CAP Gen are suspended,” Insurance commissioner Emmanuel Dooc said in the order.
“Likewise, Cap Gen is prohibited from making any payment of its liabilities as of 26 April 2016,” he said.
An Insurance spokesman said the stay order would allow the agency to assess the assets of Cap Gen against all claims.
The notice mandated CAP Gen to pay in full all approved administrative expenses incurred after the issuance of the order.
Cap Gen was prohibited from selling, encumbering and transferring any of its properties, except in the ordinary course of business and upon recommendation by the appointed receiver of the company and/or the conservatorship, receivership and liquidation (division and approval of the lnsurance commissioner.
IC placed CAP Gen under receivership on June 8, 2015 and appointed lawyer Rhodela Virginia Garcia as receiver of the company.
IC, however, said any course of business suggested by the receiver of the company would be considered.
Dooc said the insurance sector remained healthy, with data showing that the total premium of the life and non-life insurance industry rose 18.59 percent to P231.7 billion in 2015 from P195.40 billion in 2014.
This made 2015 as the banner year for the insurance industry, beating the previous record of P205.89 billion in total premium in 2013.
Dooc said the insurance industry remained strong and foreign investors were still keen to invest in the Philippines.
He said the government was working hard to protect the interest of all policyholders and keep the utmost integrity of the insurance sector.
“When I took office in 2010, there were more than 120 insurance companies in the Philippines. Now, there are about 97 companies in existence, of which, 31 life and 66 non-life,” Dooc said.
