Senate / Office of the gor retarp TWENTIETH CONGRESS OF THE AUG 27 P2:19 REPUBLIC OF THE PHILIPPINES First Regular Session ) RECEIVED BY: SENATE S. No. 1284 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE CORPORATION AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN AGRICULTURAL INSURANCE, FURTHER AMENDING SECTION 1 AND
SECTION 3.11 OF PRESIDENTIAL DECREE NO. 1467, CREATING THE
PHILIPPINE CROP INSURANCE CORPORATION, AS AMENDED EXPLANATORY NOTE The Philippine Crop Insurance Corporation (PCIC) is a government-owned and -controlled corporation created under Presidential Decree No. 1467 in 1978. It was founded to support farmers with insurance coverage against natural calamities, such as typhoons, floods, droughts, plant disease, pest infestations, and other disasters. Agriculture is the backbone of the Philippine economy as it plays a crucial role in guaranteeing food security for the people. However, natural disasters and calamities have had a significant impact on the agricultural sector in the country, resulting in losses of billions of pesos every year. It has also left our farmers and fisherfolk in a devastating state.
According to the Philippine Statistics Authority (PSA), from 2010 to 2019, damages incurred due to natural extreme events and disasters amounted to P463 billion, of which agriculture posted the largest share with 62.7 percent or P290 billion.] Due largely to the impacts of weather disturbances, the agriculture sector saw a 2.8% year-on-year decline, which the National Economic and Development Authority (NEDA) attributed to El Niño and a series of destructive typhoons. 2 These recurring losses not only strain the livelihoods of smallholder farmers but also disrupt national food supply chains and threaten economic stability. The government and other stakeholders need to work together to improve the resilience of the agricultural sector and reduce the impact of natural disasters on farmers and rural communities. By providing better insurance coverage and services to farmers, the government can help promote the growth and development of the agricuitural sector, which is vital for the country's overall economic growth and development. This bill seeks to improve the services of the PCIC and promote private sector contribution in agricultural insurance to help farmers manage the risks that are present in agricultural production. The bill also explicitly provides that the PCIC shall immediately cover all agricultural commodities and include other non-crop agricultural assets, such as livestock, aquaculture and fishery, agroforestry, forest plantations. Private sector organizations are also encouraged to assist farmers by offering reinsurance services for entities willing to offer agricultural insurance. In view of the foregoing, the passage of this bill is earnestly sought. SENATOR CHRISTOPHER LAWRENCE "BONG" T. GO ' https://psa.gov.ph/content/damages-due-natural-extreme-events-and-disasters-amounted-php-463- billion 2 https://www.bworldonline.com/the-nation/2024/11/19/636024/marcos-says-agriculture-damage-is-biggest- problem-after-series-of-typhoons/
Senate Office of the foretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES AUG 27 P2:19 First Regular Session RECEIVED BY SENATE 1284 S. No. _ Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE CORPORATION AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN AGRICULTURAL INSURANCE, FURTHER AMENDING SECTION 1 AND
SECTION 3.11 OF PRESIDENTIAL DECREE NO. 1467, CREATING THE
PHILIPPINE CROP INSURANCE CORPORATION, AS AMENDED Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled.
SECTION 1. Section 1 of Presidential Decree No. 1467, as amended, is hereby
further amended, to read as follows: "SEC. 1. Creation of the Philippine Crop Insurance Corporation. - There is hereby created a body corporate to be known as the "Philippine Crop Insurance Corporation" (PCIC and herein called the Corporation) which shall be attached to the Department of Agriculture for budgetary purposes. The Corporation shall insure [qualified] farmers against losses arising from natural calamities, plant diseases, and pest infestations. [Initially,] [t]he Corporation shall provide insurance coverage for ALL AGRICULTURAL COMMODITIES, INCLUDING palay crops, and [later on to] other
crops, without prejudice to the inclusion of other non-crop agricultural assets, such as [but not limited to] LIVESTOCK, AQUACULTURE AND FISHERY, AGROFORESTRY, FOREST PLANTATIONS, machineries, equipment, transport facilities, and other related infrastructures, as the Board of Directors of the Corporation may determine. Such [crop] insurance shall cover, in every case, the cost of production inputs, the value of the farmer's own labor and those of the members of his household, including the value of the labor of hired workers, and a portion of the expected yield as the Board of Directors, in its discretion, decide to insure. Such insurance protection, however, shall exclude losses arising from avoidable risks emanating from or due to the negligence, malfeasance or fraud committed by the insured or any member of his immediate farm household or employee [or the failure of the insured to follow proven farm practices]. THE CORPORATION SHALL ALSO OFFER REINSURANCE SERVICES FOR ENTITIES WILLING TO OFFER AGRICULTURAL INSURANCE."
SEC. 2. Subsection 3.11 of section 3 of Presidential Decree No. 1467, as
amended, is hereby further amended to read as follows: "3.11. To generate internal funds by floating bonds, expansion to other insurance lines, INCLUDING REINSURANCE AGREEMENTS WITH AGRICULTURAL COOPERATIVES, FARMERS' ASSOCIATIONS, AND OTHER PRIVATE SECTOR PARTICIPANTS IN THE AGRICULTURAL INSURANCE MARKET, and extending coverage to other areas of agriculture, SUCH AS LIVESTOCK, AND AQUACULTURE FISHERY, AGROFORESTRY, OR FOREST PLANTATIONS, in order to address THE insurance needs of the target sector and to do and perform acts and things and to exercise all the general powers conferred by law upon the Corporation as are incidental or conducive to the attainment of the
objectives of the Corporation."
Sec. 3. Implementing Rules and Regulations. - Within sixty (60) days from the
approval of this Act, the PCIC and the Department of Agriculture, in consultation with concerned stakeholders, shall formulate the rules and regulations necessary for the effective implementation of this Act.
SEC 4. Separability Clause. - Any portion or provision of this Act that is declared
unconstitutional shall not have the effect of nullifying other portions or provisions hereof as long as such remaining portions can still subsist and be given effect in their 11 entirety.
SEC 5. Repealing Clause. - All laws, ordinances, rules, regulations, other
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or modified accordingly.
SEC 6. Effectivity. - This Act shall take effect fifteen (15) days after its
18 publication in the Official Gazette or in a newspaper of general circulation. Approved, m