TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1284
Senate
ol tl)e ^ca-etarp
25 AUG 27 P 2 -19
RtCElVuD BY
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.1
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 Nino 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 
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 inciude 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 CHRISTOPHE
WRENCE "BONG" T. GO
' https://psa.gov.ph/content/clamages-due-natural-extreme-events-and-disasters-amounted-php-463- 
billion
2 https;//www.bworldonline.com/the-nation/2024/l l/19/636024/marcos-says-agriculture-damage-is-biggest- 
problem-after-series-of-typhoons/


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
1284
^niatr
\ST'X_>y7^/SfUcr of rlje l erarp
25 AUG 27 P2:19
RtXEIVLD BY
Introduced by Senator Christopher Lawrence "Bong" T. Go
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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 Presidentiai Decree No. 1467, as amended, is hereby 
further amended, to read as foiiows:
"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 
caiied the Corporation) which shaii be attached to the Department of 
Agriculture for budgetary purposes. The Corporation shaii insure 
[qualified] farmers against iosses arising from naturai caiamities, 
piant diseases, and pest infestations. [Initialiy,] [t]he Corporation 
shaii provide insurance coverage for ALL AGRICULTURAL 
COMMODITIES, INCLUDING paiay crops, and [later on to] other


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crops, without prejudice to the inciusion of other non-crop agricuitural
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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 reiated
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infrastructures, as the Board of Directors of the Corporation may
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determine. Such [crop] insurance shali cover, in every case, the cost
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of production inputs, the vaiue of the farmer's own iabor and those of
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the members of his househoid, including the vaiue of the iabor 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, FARMERS'
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ASSOCIATIONS, AND OTHER PRIVATE SECTOR PARTICIPANTS
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IN THE AGRICULTURAL INSURANCE MARKET, and extending
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coverage to other areas of agriculture, SUCH AS LIVESTOCK,
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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."
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Sec. 3. Implementing Rules and Regulations. - Within sixty (60) days from the
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approval of this Act, the PCIC and the Department of Agriculture, in consultation with
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concerned stakeholders, shall formulate the rules and regulations necessary for the
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effective implementation of this Act.
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SEC 4. Separability Clause. - Any portion or provision of this Act that is declared
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unconstitutional shall not have the effect of nullifying other portions or provisions
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hereof as long as such remaining portions can still subsist and be given effect in their
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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,