The Department of Budget and Management (DBM) has revealed plans to broaden the scope of the national indemnity insurance program (NIIP) to cover more than just school buildings.
Budget Secretary Amenah F. Pangandaman said on Wednesday, Aug. 28, that the DBM wants to add other important infrastructure, such as hospitals, healthcare facilities, roads and bridges, to the NIIP.
At present, the NIIP only covers government-owned assets such as school buildings.
“I would like to include roads and bridges because they are heavily affected during calamities. It's difficult to transport goods and supplies when the roads are damaged,” Pangandaman said in an interview.
To facilitate the inclusion of additional government infrastructure assets, Pangandaman, however, noted the necessity of creating "defined parameters" for their evaluation.
“By 2026, we hope to have clearer guidelines in place,” she said.
In the proposed 2025 national budget, the Marcos administration has allocated P2 billion for the NIIP premium, maintaining the same amount as this year.
National Treasurer Sharon P. Almanza, meanwhile, stated that they still have off-budget funds available for the expansion of the NIIP.
"We still have off budget funds to supplement the requested budget [for 2025] so that we will be able to cover DOH [Department of Health] hospitals and equipment," Almanza said in a mobile phone message.
The NIIP, backed by the Government Service Insurance System (GSIS), is designed to protect government finances from unexpected losses due to disasters such as typhoons and earthquakes.
The NIIP also ensures that funds are readily available for reconstruction efforts following disasters.
Earlier, Wick Veloso, GSIS president and general manager, stated that they intend to expand the coverage of the NIIP to include hospitals and other infrastructure, such as roads and bridges.
The Bureau of the Treasury has procured a one-year insurance policy from GSIS worth P843 billion to cover more than 132,000 Department of Education (DepEd) school buildings nationwide.
According to GSIS, this policy provides protection for schools against losses resulting from fire, lightning, typhoons, earthquakes, volcanic eruptions, floods, and storm surges.
Meanwhile, GSIS said the NIIP will assist in speeding up the repair of public schools damaged by Typhoon Carina.
Veloso said that more than 132,000 public school buildings were covered by the NIIP before the typhoon hit.
“This insurance coverage will provide critical funds to rebuild classrooms and minimize learning disruptions,” Veloso said. “Without this program, the government would face significant challenges in allocating resources for repairs.”