NATCCO Mutual Benefit Association

Why Damayan?

Filipinos are family-oriented people. At the time of death of any member of the family, those who are left behind see to it that the remains of the decedent member is well-taken care of. This entails some sizable sum of money, some of which are contributed by friends and other relatives. The NATCCO MBA Damayan System is designed to supplement the family needs during this inevitable future event.


A primary cooperative can sign up with the NATCCO MBA Damayan System to participate. The primary cooperative collects Php80 per month from subscribing members who are in good health and above 18 years old but below 65 upon enrollment to the Damayan for 240 months. The primary cooperative may allow a member to borrow Php12,265 (net) to be fully covered without contributing anymore provided that the member is in good health and below 46 years old. A member can pay in advance only up to the age of 65 years and eleven months.

How much is the coverage?

If the member dies while his Damayan membership is in active status, his beneficiaries shall receive Php45,000. If he/she is preceded by his/her spouse or any of his/her three named minor dependents, he/she shall receive Php15,000. The total package of benefits of the NATCCO MBA Damayan System is Php105,000.

Who are Inactive Members?

Members who have not paid their monthly contributions for over two (2) months or those who are over 65 are considered inactive for purposes of computing the Damayan benefits upon death of the member or any of his/her spouse or three designated minor dependents.

How are the Benefits Computed for Inactive Members?

If the member is in inactive status upon his/her death or upon the death of his/her spouse or any of his three minor dependents, the benefits is computed by the ratio of his/her number of cumulative monthly contributions against 240 months. For example, if he/she is over 65 but has paid only 120 months upon his/her death, his/her beneficiaries shall receive 120/240 or half of the Php45,000 plus the accumulated 5% savings. Note that he has only contributed Php9,200 for 120 months. However, even if he/she had only paid 120 monthly contributions upon his/her death but is below 65, his/her beneficiaries get the Php45,000 plus the accumulated 5% savings.

Is this System Sustainable?

The contributions are allocated for risk, members’ savings, pooled savings, contingency savings, and administrative expenses. Only 20 percent of contributions are allowed by law for administrative expenses which is equally shared by the primary cooperatives and NATCCO MBA, Inc. All the rest shall go to members’ benefits.

The risk component is computed to pay the benefits while the members are still paying according to the table of mortality by the National Statistical Office plus some factor of safety of about 40%.

The pooled savings and the contingency savings whose certificates of deposit are to be kept in trust by the Insurance Commission are computed to pay all beneficiaries after the paying period.

The members’ savings are designed to determine the extent of their membership with the Damayan System and they thereby get more than Php45,000 in benefits since the savings are to be guaranteed 6% per annum interest compounded monthly plus a rebate from the surplus of the 10% of contributions allotted for administrative expenses of NATCCO MBA, Inc. by virtue of efficient and frugal management and interest earnings of the savings over and above the computed 6% per annum compounded monthly.

Additionally, the system can allow the primary cooperatives to list three non-paying active members for every 2,000 members or a major fraction thereof according to their own selection criteria but preferably those who have served their primary cooperatives for ten years or so.

How is Management Efficiency ensured?

Management of the NATCCO MBA, Inc. shall be the joint undertaking of the subscribing primary cooperative and NATCCO. The Memorandum of Agreement to be entered into by the subscribing cooperative and NATCCO spells out their respective duties and responsibilities. A system of representation in the general assembly of the NATCCO MBA, Inc. to elect its officers and to yearly pass upon the actions of management of the previous year’s operation shall be designed to optimize representation.

NATCCO MBA, Inc. shall install the record system in each major operating branch of the subscribing primary cooperative for easy transmission and retrieval to and by the national headquarters. Any excess of the 10% of contribution for the administrative expense of the primary cooperative shall be treated by the cooperative as other income. The expenses out of the 10% of contributions for the administrative expenses of the NATCCO MBA, Inc. shall be reported to the general assembly yearly.

Transparency, accountability, and shared responsibility in governance are the keys to efficient and frugal management.

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