NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. No. 2118
of t!K
23 MW -3 Ml ;45
RCCaVtOBV: „
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. 1467l CREATING THE 
PHILIPPINE CROP INSURANCE CORPORATION. AS AMENDED
EXPLANATORY NOTE
The Philippine Crop Insurance Corporation (PCIC) was founded to support 
farmers with insurance coverage against natural calamities, such as typhoons, 
floods, droughts, plant disease, pest infestations, and other disasters. The PCIS aims 
to assist the farmers in managing the risks associated with agricultural production 
and to provide them with a safety net against unexpected and inevitable losses.
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.1
1 https://psa.gov.ph/content/clamages-due-natural-extreme-events-and-clisasters-amounted-php-463- 
billion


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 
agricultural 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


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Senate
of tl5C
23 MAY -3 A11 :45
SENATE 
s. No. 211 8
RECEIVED BV
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-.
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SECTION 1. Section 1 of Presidential Decree No. 1467, as amended, is
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hereby
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further amended, to read as follows:
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"SEC. 1. Creation of the Philippine Crop Insurance
5 
Corporation. - There is hereby created a body corporate to be known
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as the "Philippine Crop Insurance Corporation" (PCIC and herein
7 
called the Corporation) which shall be attached to the Department of
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Agriculture for budgetary purposes. The Corporation shall insure
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[qualified] farmers against losses arising from natural calamities,
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plant diseases, and pest infestations. [Initially.] [t]he Corporation
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shall provide insurance coverage for ALL AGRICULTURAL
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COMMODITIES. INCLUDING palay crops, and [later on to] other
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crops, without prejudice to the inclusion of other non-crop agricultural


1 
assets, such as [but not limited to] LIVESTOCK. AQUACULTURE
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AND FISHERY. AGROFORESTRY. FOREST PLANTATIONS,
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machineries, equipment, transport facilities, and other related
4 
infrastructures, as the Board of Directors of the Corporation may
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determine. Such [crop] insurance shall cover, in every case, the cost
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of production inputs, the value of the farmer's own labor and those of
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the members of his household, including the value of the labor of hired
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workers, and a portion of the expected yield as the Board of Directors,
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in its discretion, decide to insure. Such insurance protection, however,
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shall exclude losses arising from avoidable risks emanating from or
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due to the negligence, malfeasance or fraud committed by the insured
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or any member of his Immediate farm household or employee [or the
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failure of the insured to follow proven farm practices], THE
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CORPORATION SHALL ALSO OFFER REINSURANCE SERVICES FOR
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ENTITIES WILLING TO OFFER AGRICULTURAL
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INSURANCE."
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SEC. 2. Subsection 3.11 of section 3 of Presidential Decree No. 1467, as
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amended, is hereby further amended to read as follows:
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"3.11. To generate internal funds by floating bonds, expansion
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to other insurance lines, INCLUDING REINSURANCE
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AGREEMENTS WITH AGRICULTURAL COOPERATIVES.
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FARMERS' ASSOCIATIONS. AND OTHER PRIVATE SECTOR
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PARTICIPANTS IN THE AGRICULTURAL INSURANCE MARKET,
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and extending coverage to other areas of agriculture, SUCH AS
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LIVESTOCK. AQUACULTURE AND FISHERY. AGROFORESTRY,
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OR FOREST PLANTATIONS, in order to address THE insurance
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needs of the target sector and to do and perform acts and things and
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to exercise all the general powers conferred by law upon the
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Corporation as are incidental or conducive to the attainment of the
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objectives of the Corporation."


Sec. 3. Implementing Rules and Regulations. - Within sixty (60) days from the 
approval of this Act, the PC 1C 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
8 effect in their entirety.
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SEC 5. Repealing Clause. - All laws, ordinances, rules, regulations, other
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issuances or parts thereof, which are inconsistent with this Act, are hereby repealed
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or modified accordingly.
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SEC 6. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication In the Official Gazette or in a newspaper of general circulation.
Approved,
A