Manila Bulletin
Philippines
National
Go files bill expanding PCIC services, agricultural insurance
Philippines
National
Go files bill expanding PCIC services, agricultural insurance
Go files bill expanding PCIC services, agricultural insurance
Published May 14, 2023 05:33 am
Senator Christopher “Bong” Go is now seeking passage of a bill that would expand the services of the Philippine Crop Insurance Corp. (PCIC) and encourage private sector participation in agricultural insurance.
Go, in filing Senate Bill No. 2117, said it is necessary to provide better insurance coverage and services to farmers and help mitigate the impact of natural disasters on the agricultural sector.
PCIC, he noted, was founded “to support farmers with insurance coverage against natural calamities such as typhoons, floods, droughts, plant disease, pest infestations, and other disasters.”
But 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, the senator lamented.
Citing Philippine Statistics Authority (PSA) data from 2010 to 2019, Go said damages incurred due to natural extreme events and disasters amounted to P463-billion. The agricultural sector posted the largest share with 62.7 percent or P290-billion.
“Agriculture is the backbone of the Philippine economy as it plays a crucial role in guaranteeing food security for the people. 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,” Go said.
“The expansion of services of the PCIC and the encouragement of private sector participation in agricultural insurance can help farmers manage the risks that are present in agricultural production,” said Go.
Go said the measure seeks to improve the services of the PCIC by explicitly providing that the company shall immediately cover all agricultural commodities and include other non-crop agricultural assets, such as livestock, aquaculture and fishery, agroforestry, forest plantations.
If enacted into law, the bill will amend Section 1 and Section 3.11 of Presidential Decree No. 1467, to insure all agricultural commodities, including palay crops, and other non-crop agricultural assets.
Amending Section 3.11, Go said, will allow the PCIC to generate internal funds by expanding to other insurance lines, including reinsurance agreements with agricultural cooperatives, farmers’ associations, and other private sector participants in the agricultural insurance market.
“By providing better insurance coverage and services to farmers, the government can help promote the growth and development of the agricultural sector, which is vital for the country's overall economic growth and development,” he stressed.