Question & AnswerQ&A (DOF DEPARTMENT ORDER NO. 32-93)
The main purpose is to implement the provisions of Article 118 under Chapter XV of Republic Act No. 6938, providing the rules and regulations for cooperative insurance societies in the Philippines, including their organization, membership, registration, capitalization, and operation.
A cooperative is defined as a duly registered association of persons with a common bond of interest who voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to capital and accepting a fair share of risks and benefits according to universally accepted principles.
They may provide different types of insurance such as life insurance with group coverage, loan protection, retirement plans, endowment with health and accident coverage, fire insurance, motor vehicle coverage, bonding, crop and livestock protection, and equipment insurance.
Only duly-registered cooperatives, their federations, or unions may organize cooperative insurance societies.
Membership is open to duly registered cooperatives of all types, their federations or unions, and cooperative-oriented societies and organizations that are basically non-profit and involved in the promotion or development of cooperatives and cooperativism.
The minimum paid-up capitalization required is Ten Million Pesos (P10,000,000.00) for both stock and mutual life insurance companies, subject to possible reduction to not less than half upon consultation with the Cooperative Development Authority and the cooperative sector.
The Commission may suspend or revoke the certificate after due notice and hearing if the cooperative violates any existing laws, rules, regulations, or provisions of the Insurance Code.
The Joint Committee, composed of representatives from the Cooperative Development Authority, Insurance Commission, and the cooperative insurance sector, oversees the full implementation of the rules and regulations. It is chaired by the top-ranking representative of the Authority.