Which statement regarding PDIC insurance is correct?

The assertion that a client demanding compensation for loss citing PDIC insurance is incorrect is accurate because the PDIC, or Philippine Deposit Insurance Corporation, primarily insures depositors against the insolvency of banks. This insurance covers deposit accounts in member banks, such as savings accounts, time deposits, and checking accounts, but does not extend to investment products like stocks, UITFs, or bonds.

In the context of investment losses, claiming compensation through PDIC would not be valid, as losses from market fluctuations or investment performance are not covered by PDIC insurance. The purpose of PDIC is to protect depositors' money up to a specified limit in the event of a bank failure, and not to ensure the value or performance of investment accounts.

Understanding this distinction is essential for clients to recognize what is and isn't covered under PDIC insurance, thereby preventing misconceptions about the types of financial protections available for different investment vehicles.