Friday, July 29, 2016

The Knights of Columbus, an Organization with an Insurance Program to Its Members

The Knight of Columbus is a Roman Catholic, family, fraternal and service organization that is positively distinct from other civic organizations because of its insurance program for the financial protection of its members and their family. Subscribing to an insurance policy is however voluntary and members can select one or more insurance products that suit their needs and budgets. The most affordable is the group insurance plan whereby a group of knights pays PHP 500 per member to pool their money for an insurance coverage of one year. And in case of an untimely death of any member within that period his beneficiary or his family receives PHP 50,000 as compensation. Ideally, a brother knight should get an insurance certificate to have himself or his loved ones the privilege of being financially protected by the organization in case of unfortunate events.

In the Philippines the insurance program is undertaken by the Knight of Columbus Fraternal Association of the Philippines Inc. (KCFAPI), a Mutual Benefit Association that was founded by the late Rev. Joseph Willmann, the first Philippine District Deputy of Knights of Columbus. Providing knights with financial protection is in line with the concept of US Knights of Columbus insurance programs to its members. The organization was originally founded by Fr. Michael McGivney in 1892 in New Haven, Connecticut USA to help Catholic families who lose income with the sudden demise of their breadwinner.

KCFAPI is a Mutual Benefit Association of the members of the Knights of Columbus that was incorporated in 1958. It is registered with the Securities and Exchange Commission and accredited by the Insurance Commission to deal with insurance related transactions. It is a non-stock and non-profit association that exclusively serves the members of Knights of Columbus and their immediate family. Transactions between the KC Fraternal Association and the benefit certificate holders and their beneficiaries are done in conformity with the Philippine Insurance Law.  
Benefit Certificate or policy holders of the KCFAPI automatically become co-owner of the association who can participate in the sharing of its dividends. In addition they can also avail of loans with an amount based on the total cash value of their benefit certificate.                                                                                                                                  
The growth in the number of benefit security holders and net assets is an affirmation of the sound management and financial stability of the association. On that premise the knight’s investment is in the association is said to be secured. In 1958 the association started with just a capital of PHP32, 000 which was contributed by 64 member knights. In 2015 this has grown up to PHP 13.36 billion insurance in force, and the association’s total amount of resources is now worth PHP 4.86 billion. For 2015, maturities paid amounted to PHP 203 million, and death claim paid amounted to PHP 106.7 million. The association also posted a PHP 70.2 million excess of revenue over expenses before participation to benefit certificate or insurance policy holders. KCFAPI is the only mutual benefit association in the Philippines with an ISO Certified Quality System under the standards of ISO 9001:2008.                                                                   

A brother knight is guided with the principle of charity, unity, fraternity and patriotism and with its motto “In service to one, in service to all” as he carries out his activities in the order. Joining the order, he serves his church, his community and his country by voluntarily and selflessly giving his time, effort and material resources without expecting something in return. He does it because of his devotion and inspiration to follow Jesus Christ.