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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 2419 
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Introduced by Representative FELIMON M. ESPARES 
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AN ACT  
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EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE
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CORPORATION AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN
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AGRICULTURAL INSURANCE, FURTHER AMENDING SECTION 1 AND
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SECTION 3.11 OF PRESIDENTIAL DECREE NO. 1467, CREATING THE
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PHILIPPINE CROP INSURANCE CORPORATION, AS AMENDED 
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EXPLANATORY NOTE 
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The Philippine Crop Insurance Corporation (PCIC) is a government owned and 
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controlled corporation created under PD 1467. It was later amended by PD 1733 and further 
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amended by RA 8175; It is the implementing agency opf the government's agricultural 
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insurance program. PCIC is an attached agency of the Department of Agriculture and its 
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principal mandate is to provide insurance protection to farmers against losses arising from 
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natural calamities, plant diseases and pest infestations of their crops, such as rice, corn, and 
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other high-value crops. 
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However, the current scope of the PCIC’s coverage fails to include other equally 
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important agricultural commodities, including livestock, aquaculture and fisheries, 
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agroforestry, and forestry plantations. The inclusion of these sectors is essential for the holistic 
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development of the agriculture industry and for strengthening national food security, both of 
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which are key commitments of President Ferdinand “Bongbong” Marcos, Jr. 
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Providing insurance coverage for these commodities would offer a crucial safety net 
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for farmers and fisherfolk, protecting them from financial losses caused by natural disasters, 
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pests, diseases, and other unforeseen events. This protection would not only stabilize their 
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income but also encourage investment in modern technologies and enable them to sustain 
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operations even in the face of setbacks or losses. 
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Therefore, the immediate passage of this bill is earnestly sought. 
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FELIMON M. ESPARES
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July 28, 2025
3:00 pm


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 2419 
10 
11 
Introduced by Representative FELIMON M. ESPARES 
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13 
AN ACT  
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EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE
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CORPORATION AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN
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AGRICULTURAL INSURANCE, FURTHER AMENDING SECTION 1 AND
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SECTION 3.11 OF PRESIDENTIAL DECREE NO. 1467, CREATING THE
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PHILIPPINE CROP INSURANCE CORPORATION, AS AMENDED 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled:  
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SECTION 1. It shall be the policy of the State to develop and support an adequate agricultural 
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insurance program as a mechanism for managing the risks inherent in agriculture and 
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stabilizing the financial fluctuations suffered by agricultural producers in case of loss on all 
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agricultural commodities, whether crops or livestock, and including the agricultural facilities 
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and related infrastructures, with the end in view of encouraging lending institutions to extend 
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credit to the agricultural sector. 
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It shall also be the policy of the State to promote the modernization of the agricultural sector 
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by mitigating the risks inherent to the industry and which increase the barriers to increased 
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market participation in businesses related to agriculture.  
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Towards this end, the State shall encourage active private sector participation in extending 
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agricultural insurance to members of the agricultural sector by allowing the Philippine Crop 
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Insurance Corporation to undertake reinsurance agreements with private sector agricultural 
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insurers and to extend its insurance services to livestock, aquaculture and fishery, agrofishery, 
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and forest plantation insurance. 
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SECTION 2. Section 1 of Presidential Decree No. 1467, as amended, is hereby further 
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amended, to read as follows: 
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“SEC. 1. Creation of the Philippine Crop Insurance Corporation. – 
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There is hereby created a body corporate to be known as the “Philippine 
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Crop Insurance Corporation” (PCIC and herein called the Corporation) 
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which shall be attached to the Department of Agriculture for budgetary 
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purposes. The Corporation shall insure [qualified] farmers against losses 
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arising from natural calamities, plant diseases, and pest infestations. 
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[Initially,] [t]The Corporation shall provide insurance coverage for ALL 
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AGRICULTURAL COMMODITIES, INCLUDING palay crops, and 
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[later on to] other crops, without prejudice to the inclusion of other non-
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crop agricultural assets, such as [but not limited to] LIVESTOCK, 
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AQUACULTURE AND FISHERY, AGROFORESTRY, FOREST 
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PLANTATIONS, machineries, equipment, transport facilities, and other 
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related 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 of 
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production inputs, the value of the farmer's own labor and those of the 
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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, in 
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its discretion, decide to insure. Such insurance protection, however, shall 
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exclude losses arising from avoidable risks emanating from or due to the 
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negligence, malfeasance or fraud committed by the insured or any member 
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of his immediate farm household or employee [or the failure of the 
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insured to follow proven farm practices]. THE CORPORATION 
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SHALL 
ALSO 
OFFER 
REINSURANCE 
SERVICES 
FOR 
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ENTITIES 
WILLING 
TO 
OFFER 
AGRICULTURAL 
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INSURANCE.” 
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SECTION 3. Subsection 3.11 of Section 3 of Presidential Decree No. 1467, as amended, is 
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hereby further amended to read as follows: 
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“3.11. To generate internal funds by floating bonds, expansion to other 
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insurance lines, INCLUDING REINSURANCE AGREEMENTS 
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WITH 
AGRICULTURAL 
COOPERATIVES, 
FARMERS’ 
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ASSOCIATIONS, 
AND 
OTHER 
PRIVATE 
SECTOR 
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PARTICIPANTS 
IN 
THE 
AGRICULTURAL 
INSURANCE 
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MARKET, and extending coverage to other areas of agriculture, SUCH 
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AS 
LIVESTOCK, 
AQUACULTURE 
AND 
FISHERY, 
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AGROFORESTRY, OR FOREST PLANTATIONS,  in order to 
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address THE insurance needs of the target sector and to do and perform 
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acts and things and to exercise all the general powers conferred by law 
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upon the Corporation as are incidental or conducive to the attainment of 
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the objectives of the Corporation.” 
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SECTION 4.  Subsection 9.1, Section 9 of Presidential Decree No. 1467, as amended, is 
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hereby further amended by deleting the entire provision, and in lieu thereof, insert the 
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following: 
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“9.1. THE POWERS OF THE PCIC SHALL BE VESTED IN AND 
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EXERCISED BY ITS BOARD OF DIRECTORS, COMPOSED OF 
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EIGHT (8) MEMBERS AS FOLLOWS: 
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1. SECRETARY 
OF 
FINANCE, 
AS 
EX 
OFFICIO 
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CHAIRPERSON; 
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2. PRESIDENT OF THE PCIC AS EX OFFICIO VICE-
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CHAIRPERSON; 
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3. PRESIDENT OF THE LANDBANK; 
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4. SECRETARY OF THE DEPARTMENT OF AGRICULTURE 
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(DA); 
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5. ONE (1) REPRESENTATIVE FROM THE PRIVATE 
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INSURANCE INDUSTRY TO BE NOMINATED BY THE 
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SECRETARY OF FINANCE; AND  
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6. THREE 
(3) 
REPRESENTATIVES 
FROM 
THE 
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SUBSISTENCE 
FARMERS’ 
SECTOR, 
PREFERABLY 
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REPRESENTING AGRARIAN REFORM BENEFICIARIES, 
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COOPERATIVES, OR ASSOCIATIONS COMING FROM 
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LUZON, VISAYAS, AND MINDANAO, WHO SHALL BE 
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SELECTED AND NOMINATED BY THE DIFFERENT 
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FARMERS’ ORGANIZATIONS OR COOPERATIVES.” 
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SECTION 5. Subsection 9.4, Section 9 of Presidential Decree No. 1467, as 5 amended, is 
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hereby further amended by deleting the entire provision, and in lieu thereof, insert the 
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following: 
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“9.4 THE CHAIRPERSON AND THE MEMBERS OF THE BOARD 
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SHALL EACH RECEIVE PER DIEM PURSUANT TO EXISTING 
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LAWS, FOR EACH MEETING OF THE BOARD ACTUALLY 
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ATTENDED: PROVIDED, THAT IN THE CASE OF THE 
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REPRESENTATIVES OF THE SUBSISTENCE FARMERS’ SECTOR, 
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THE BOARD IS AUTHORIZED TO PROVIDE FUNDS TO DEFRAY 
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THE COST OF REASONABLE TRAVEL EXPENSES AND, IF 
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NECESSARY, SUBSISTENCE EXPENSES IN ADDITION  TO PER 
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DIEM.” 
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SECTION 6. Section 11-B of Presidential Decree No. 1467, as amended, is hereby further 
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amended by deleting the entire provision, and in lieu thereof, insert the following: 
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“SEC. 11-B. NO CLAIM BENEFITS. – ANY INSURED FARMER 
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WHO HAS NOT FILED ANY CLAIM DURING THE IMMEDIATELY 
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PRECEDING THREE (3) CROP SEASONS, OR ANY INSURED 
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FISHPOND OR FISH CAGE OPERATOR WHO HAS NOT FILED 
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ANY CLAIM DURING THE IMMEDIATELY PRECEDING THREE 
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(3) HARVEST SEASONS, SHALL BE  ENTITLED TO A NO-CLAIM 
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BENEFIT OF AT LEAST TEN PERCENT (10%) OF HIS PREMIUM 
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SHARE PAID FOR SAID CROP SEASONS TO BE DEPOSITED IN A 
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TRUST FUND AND TO BE MANAGED BY THE CORPORATION. 
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SUCH TRUST FUND MAY BE USED TO FINANCE PREMIUM 
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REBATE OR PREMIUM CREDIT APPLICABLE TO THE 
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IMMEDIATELY FOLLOWING CROP SEASONS AS DETERMINED 
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BY THE BOARD OF DIRECTORS.” 
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SECTION 7. Section 14 of Presidential Decree No. 1467, as amended, is hereby amended by 
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deleting the entire provision, and in lieu thereof, insert the following: 
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“SEC. 14. INTER-AGENCY LINKAGES. – TO SUPPORT AND 
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PROMOTE THE OPERATIONS OF THE CORPORATION, ALL 
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GOVERNMENT DEPARTMENTS, BUREAUS, OFFICES, AGENCIES 
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AND 
INSTRUMENTALITIES, 
NATIONAL 
OR 
LOCAL, 
ALL 
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LENDING INSTITUTIONS, GOVERNMENT OR PRIVATE, NOW OR 
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HEREAFTER ENGAGED IN THE SUPERVISED CREDIT PROGRAM 
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TO FARMERS AND FISHERFOLK, AND SUCH OTHER PUBLIC OR 
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PRIVATE ENTITIES AS MAY BE CALLED UPON BY THE 
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CORPORATION, SHALL ACT AS COOPERATING AGENCIES TO 
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THE CORPORATION, AND FOR THIS PURPOSE, ARE HEREBY 
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DIRECTED TO DESIGN THEIR POLICIES, PROGRAMS, RULES 
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AND REGULATIONS SO AS TO ATTUNE AND SYNCHRONIZE 
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THEM WITH THE OBJECTIVES OF 17 THE CORPORATION.” 
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SECTION 8. Section 17-A of Presidential Decree No. 1467, as amended, is hereby amended 
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by deleting the entire provision, and in lieu thereof, insert the following: 
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“SEC. 17-A. PENAL PROVISIONS. – THE CLAIMANT OR ANY 
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PERSON WHO THROUGH MALFEASANCE, MISFEASANCE OR 
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NONFEASANCE ALLOWS A SPURIOUS CLAIM TO BE PAID, 
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INCLUDING THE CLAIMANT HIMSELF, SHALL UPON FINAL 
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CONVICTION, BE PUNISHED BY IMPRISONMENT OF NOT LESS 
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THAN THREE (3) YEARS BUT NOT MORE THAN EIGHT (8)  YEARS 
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OR A FINE OF NOT LESS THAN ONE HUNDRED THOUSAND 
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PESOS (P100,000) BUT NOT MORE THAN SIX HUNDRED 
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THOUSAND PESOS (P600,000), OR BOTH, AT THE DISCRETION OF 
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THE COURT. THE PCIC PERSONNEL WHO ALLOWED THE 
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COMMISSION OF THE OFFENSE SHALL, IN ADDITION, BE 
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DISMISSED FROM OFFICE, AND FORFEIT ALL PRIVILEGES AND 
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BENEFITS WHICH MAY ACCRUE TO SUCH PERSONNEL.” 
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SECTION 9. The following provision shall be inserted as a new provision in Presidential 
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Decree No. 1467, to wit:  
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THE RATE OF PREMIUM AND INDEMNITY SHARING FOR 
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FARMERS, FISHERFOLK, LENDING INSTITUTIONS, AND HE 
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GOVERNMENT OF THE PHILIPPINES, SHALL BE DETERMINED 
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BY THE PCIC’S BOARD OF DIRECTORS: PROVIDED,  THAT THE 
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GOVERNMENT’S SHARE IN THE PREMIUM SUBSIDY SHALL BE 
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LIMITED TO SUBSISTENCE FARMERS AND FISHERFOLK WHO 
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CULTIVATE SMALL AREAS OF FARMLAND OR FISHPONDS, OR 
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NOT MORE THAN SEVEN (7) HECTARES AND FIVE (5) HECTARES, 
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RESPECTIVELY, BY THEMSELVES OR WITH THE HELP OF 
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HOUSEHOLD MEMBERS OR HIRED LABOR.  
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INDEMNITY SHALL BE BASED ON THE VALUE OF THE 
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POTENTIAL 
HARVEST 
AND 
OTHER 
FACTORS 
LIKE 
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PRODUCTION COSTS AND YIELD LOSS, TO BE DETERMINED BY 
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THE PCIC BOARD.  
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THE REQUIRED GOVERNMENT SUBSIDY, AS APPROVED BY THE 
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PRESIDENT, SHALL BE APPROPRIATED FROM THE FUNDS OF 
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THE NATIONAL TREASURY, AND CALAMITY FUNDS SHALL 
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LIKEWISE INCLUDE A PORTION FOR CROP INSURANCE.  
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MOREOVER, TEN PERCENT (10%) OF THE PHILIPPINE CHARITY 
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SWEEPSTAKES OFFICE’S NET EARINGS FROM ITS LOTTO 
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OPERATIONS 
SHALL 
SUPPORT 
THE 
CROP 
INSURANCE 
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PROGRAM, WHICH SHALL BE REMITTED DIRECTLY TO THE 
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PCIC. A STATE RESERVE FUND FOR CATASTROPHIC LOSSES IN 
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THE AMOUNT OF FIVE HUNDRED MILLION (P500,000.00) SHALL 
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ALSO BE CREATED  AND MANAGED BY A GOVERNMENT 
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FINANCIAL INSTITUTION DESIGNATED BY THE PCIC.  
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SECTION 10. If any provision or part hereof is held unconstitutional or invalid, the remainder 
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of the law, or the provisions not otherwise affected shall remain valid and subsisting. 
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SECTION 11. Any provisions of Presidential Decree No. 1467, as amended, and all other 
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laws, inconsistent herewith is hereby repealed or modified accordingly. 
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SECTION 12. This Act shall take effect fifteen (15) days after its complete publication in a 
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newspaper of general circulation. 
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Approved, 
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