What is PSMBFI?

            PSMBFI is a duly registered non-stock, non-profit mutual benefit association. It is organized to provide insurance protection to its member. PSMBFI is not a savings and loan association.

How did PSMBFI come about?

            The enactment of Republic Act 8291 (GSIS Act 1997) excluded the PNP, AFP, BFP, and BJMP from the social insurance coverage of GSIS without providing for an alternative option. After the passage of that law, the families of deceased policemen no longer received insurance benefits and the PNP Commanders encountered problems on how to provide a decent burial for their dead comrades in arms. As a remedy, the PNP took the decisive step to address the insurance needs of its men by creating the Public Safety Mutual Benefit Fund, Inc.

Who are qualified to become members of PSMBFI?

            PSMBFI membership was initially for the PNP Uniformed personnel. Membership has expanded over the years and now includes:
           

• PNP non-uniformed personnel
• PNP retirees
• BFP uniformed personnel
• NAPOLCOM personnel
• PNPA Cadets
• DOTC personnel

Plans are now being finalized to expand the membership coverage, which will include other public safety sectors.

When is an individual considered a member of PSMBFI?

            For PO1 recruits, PNPA Cadets, and lateral entrants, the effectivity of their membership is upon signing of the Membership Application Form (MAF) and the authority to Deduct (ATD) Form. This is to assure them of an insurance protection while undergoing training.
            For non-Equity Plan members, the effectivity is upon the first deduction of their Equity Plan premium on the continuous Form Check (CFC). The Life Insurance coverage will be incontestable after it has been in force for one year, except for non-payment of premium.

What are the insurance plans of PSMBFI?

            The four (4) insuranceplans of PSMBFIthe: Equity Plan (EP), Basic Group Term Plan (BGTP), Special Group Term Plan (SGTI), and Burial Assistance Benefit (PSMBFI Mem).

How is the member’s premium allocated by PSMBFI?

            During the creation of PSMBFI, the actuarial services commissioned by the PNP allotted reasonable percentages form the member’s monthly premium:

• 36% assumes the risk of paying for the insurance benefits to the beneficiaries and help them become financially stable.
• 44% forms part of the member’s savings that earns interest
• 20% to administer the operations of the fund in order to provide services to members.

Why the member’s premium is not fully devoted to insurance coverage?

            PSMBFI ensures that its members are provided with both insurance protection and investment option. PSMBFI allocates a portion of a member’s premium as savings that earns per annum interest.

Why is 36% from a member’s premium allocated for insurance?

            PSMBFI is primarily an insurance provider. The 36% is set aside from a member’s premium so that when he dies, PSMBFI can pay the beneficiaries the amount of the insurance coverage.

From the member’s Equity premium, why does PSMBFI allocate 20% for operational purposes?

            The 20% of the member’s contribution ensures the continuous flow of business operation. Companies allocate certain percentages for operations/administration. Normally, Insurance companies allocate 50% of a member’s contribution to the insurance coverage and 50% is allocated for operations/administration. However, in the effort to provide the member’s with a saving option, PSMBFI only allocates 20% for operational purposes.

How much shall a member receive upon maturity of membership or retirement from the service?

            A member shall receive his Equity value which is 44% of his total contribution plus yearly interest. The longer he is a member of PSMBFI, the higher his Equity value becomes. For those with continuous PSMBFI membership for 20 years, the amount of his Equity value will be twice the amount of his total premium to the Equity Plan.
What are the benefits given to PSMBFI members?

            PSMBFI provides services and privileges that are beneficial to both the member and his beneficiaries.

• A member is assured of forced savings;
• Salary and Policy loan availment;
• Minimal requirements for salary loan application;
• Upon the death of the member, the cash advance is immediately given to the beneficiaries;
• The total amount of benefits is given to the beneficiaries upon completion of all the requirements for death claim;
• Double indemnity is given to the beneficiaries in case of accidental death;
• Disability claim is given to the member in case of total permanent disability;
• Members can participate during the annual General Membership Meeting and Elections.

If a retired PNP member continues his Equity Plan membership, when, how much, and where does he pay?

            A retired policeman is no longer included in the payroll of the PNP. But he can continues his PSMBFI membership until the age of 65. He can pay the premium at the PSMBFI head office or through bank remittance or Postal Money Order (PMO). Members have the option to pay the premium on a monthly, quarterly or yearly basis. If a recently retired member continues his membership, the bigger his equity value becomes.

Who are qualified to receive disability benefit?

PSMBFI members who suffer permanent disability as a result of accident are entitled to a disability benefit. The amount depends on the loss suffered by the member as enumerated in the Schedule of Loss attached to the Membership Certificate.

Why is ambush, assault or murder not considered accident?

            Ambush, assault and murder are not accidental death. These are done with premeditation. If a PSMBFI member dies due to any of these causes, his beneficiaries will be given the corresponding amount of insurance.

What does PSMBFI provide for those wounded and killed during police operation?

PSMBFI understands the dangers that go with the police and public safety profession. Additional financial assistance is extended to members wounded in action and to the beneficiaries of those killed in action at no extra cost, effective October 1, 2007.

• P10,000 and P20,000 are given to those who incur minor and major wounds, respectively.
• P25,000 is given to the beneficiaries of those killed in action, aside from the member’s equity value and insurance benefit.

Will the beneficiaries of a member who commits suicide be entitled to receive insurance claim?

If a member commits suicide within two years after membership, his family will not be entitled to receive the insurance amount, and this policy is being adhered to by all insurance companies.

Aside from insurance, does PSMBFI offer financial assistance?

            Members can avail of financial assistance. With the approval of the Insurance Commission, PSMBFI offers loans to members up to the maximum amount of P200,000.

Who are the representatives that members may designate?

            The only representatives that PSMBFI recognizes are:

• Uniformed personnel authorized by PNP offices/units (e.g. liaison officers, chief clerks, etc.) with a copy of such designation (office order) and PNP ID.
• Direct dependents/relatives of member with Special Power of Attorney (SPA).

What are the immediate plans of PSMBFI?

            PSMBFI will soon introduce new insurance plans and loan variants.