1 
TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
EXPLANATORY NOTE 
The Philippine Crop Insurance Corporation (PCIC) was established by virtue of Presidential 
Decree (PD) 1467 on 11 June 1978 to protect farmers' investments against losses due to 
natural calamities and pest and diseases through crop insurance. The Charter of the PCIC 
has since been revised twice through PD 1733 on 21 October 1980 and Republic Act 8175 on 
29 December 1995. 
From a few thousand clients at the century's turn, PCIC now caters to several million farmers 
every year. Year in and year out, PCIC has indemnified farmers across the 
country with insurance payments worth billions of pesos for losses incurred due to natural 
calamities that have become more destructive because of climate change as well as pests 
and diseases affecting the production of the farmers. 
The end of the PCIC's corporate life is fast approaching. In 2028, the PCIC's corporate term 
of 50 years, as set in Section 2.2 of PD 1467, will expire. In order for PCIC to continue to 
perform its critical mandate of providing Filipino farmers a very effective and important risk 
management tool for dealing with climate change and building resilience; and in recognition 
of the importance of crop insurance to promote agricultural development and food security, it 
needs to be strengthened in a number of ways starting with the extension of the corporate life 
of the PCIC. 
Thus, apart from sustaining PCIC's legal existence for 25 years, this bill also seeks to 
strengthen the Corporation by institutionalizing the expansion of its agricultural insurance 
lines. From initially covering rice and corn, PCIC now has insurance products that cover high-
value crops, livestock and poultry, fisheries, non-crop agricultural assets and credit and life-
term insurance that assures payment for small loans in case of death or incapacity of borrower, 
and loss of life by natural causes or accident of farmers and fisherfolk and members of their 
families. The bill expressly indicates these insurance products.  
The bill now mentions fisherfolk among its client-beneficiaries and fish diseases as one of the 
covered losses. In keeping with the times, the bill also tasks PCIC to harness the latest 
technology and innovate on its products and processes, including the development of 
parametric/index insurance. 
The bill likewise mandates the PCIC to engage in public-private partnership arrangements to 
access the vast financial, technological and other resources of the private sector for the 
expansion of agricultural insurance in the country. It also empowers the Board to prescribe 
the criteria for evaluating the eligibility of the farmers and fisherfolk to be insured, and to 
determine the appropriate premium rates of the insurance products of the Corporation.  It caps 
the provision of subsidized crop insurance coverage to three hectares only. 
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These provisions are expected to ensure that the PCIC and its agricultural insurance service 
remain an expansive, relevant and responsive support to the development not only of the 
agriculture sector, but of the entire country. 
In view of the foregoing, immediate approval of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
  MAXIMO B. RODRIGUEZ, JR. 


3 
TWENTIETH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez and 
Representative Maximo B. Rodriguez, Jr. 
House Bill No.  _____ 
AN ACT 
STRENGTHENING 
THE 
PHILIPPINE 
CROP 
INSURANCE 
CORPORATION 
BY 
EXTENDING ITS CORPORATE TERM AND EXPANDING ITS SERVICES, AMENDING 
PRESIDENTIAL DECREE NO. 1467, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. Declaration of Policy. - It is hereby declared the policy of the State to provide 
support to agriculture through adequate financial, production, marketing and other support 
services. Towards this end, the State shall: 
a) Ensure food security, intensify food production, promote agricultural credit, and
broaden the coverage of agricultural insurance amidst the recurrence of
natural disasters and calamities, such as floods, typhoons, heavy rains, and
drought and pests and diseases that destroy crops, especially palay and other
grains and crops necessary for food security;
b) Alleviate the financial burden of farmers and fisherfolk due to losses arising
from destruction of their livelihood brought by disasters and calamities, keep them
away from indebtedness, enhance their credit standing, and provide additional
government support to farmers and fisherfolk to increase agricultural production;
c) Assist banks and financial institutions by enhancing their capabilities to extend
loans to farmers;
d) Strengthen and expand the coverage of the Philippine Crop Insurance Corporation
to provide insurance protection to farmers and fisherfolk against losses arising from
natural calamities, fortuitous events, plant and fish diseases, and pest infestations;
and
e) Encourage active private sector participation in the agricultural insurance industry
through various public-private partnership arrangements that will unlock vast
financial, technological and other resources for expanding agricultural insurance
coverage in the country.
Section 2. Section 1 of Presidential Decree No. 1467, as amended, is hereby further 
amended, to read as follows: 
“Section 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 called the Corporation) which shall be attached to the Department 
of Agriculture for budgetary purposes. The Corporation shall insure farmers AND 
FISHERFOLK against losses arising from natural calamities, FORTUITOUS EVENTS, 
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plant AND FISH diseases, and pest infestations. 
 
THE CORPORATION SHALL PROVIDE INSURANCE COVERAGE FOR PALAY 
AND CORN CROPS, HIGH-VALUE CROPS, LIVESTOCK, AQUACULTURE AND 
FISHERY PRODUCTS, AGROFORESTRY CROPS AND FOREST PLANTATIONS; 
NON-CROP AGRICULTURAL ASSETS SUCH AS MACHINERIES, EQUIPMENT, 
TRANSPORT FACILITIES, AND OTHER RELATED INFRASTRUCTURE; AND LIFE 
AND ACCIDENT TERM INSURANCE COVERAGE FOR FARMERS AND 
FISHERFOLK. IT SHALL UTILIZE THE LATEST TECHNOLOGY FOR ITS 
OPERATIONS AND OFFER PARAMETRIC/INDEX-BASED INSURANCE, AMONG 
OTHER INNOVATIVE INSURANCE PRODUCTS.  Such AGRICULTURAL insurance 
shall cover, AS FAR AS PRACTICABLE, the cost of production inputs, the value of 
the labor of the farmer or fisherfolk, and members of their households including the 
value of the labor of hired workers, and a portion of the expected yield as the Board of 
Directors in its discretion, decide to insure. Such insurance protection, however, shall 
exclude losses arising from avoidable risks emanating from or due to the negligence, 
malfeasance, or fraud committed by the insured, or any member of the immediate farm 
household or employee, or the failure of the insured to follow proven farm practices. 
THE CORPORATION SHALL LIKEWISE ENTER INTO PUBLIC-PRIVATE 
PARTNERSHIPS WITH ENTITIES WILLING TO OFFER AGRICULTURAL 
INSURANCE.” 
 
Section 3. Subsection 3.11 of Section 3 of Presidential Decree No. 1467, as amended, is 
hereby further amended to read as follows: 
 
“3.11. To generate internal funds by floating bonds, expansion to other insurance lines 
and extending coverage to other areas of agriculture, INCLUDING ENTERING INTO 
PUBLIC-PRIVATE PARTNERSHIPS WITH AGRICULTURAL COOPERATIVES, 
FARMERS’ ASSOCIATIONS, AND OTHER PRIVATE SECTOR PARTICIPANTS IN 
THE AGRICULTURAL INSURANCE MARKET, in order to address THE insurance 
needs of the target sector and to do and perform acts and things and to exercise all 
the general powers conferred by law upon the Corporation as are incidental or 
conducive to the attainment of the objectives of the Corporation.” 
 
Section 4. Section 4 of Presidential Decree No. 1467, as amended, is hereby further 
amended, to read as follows: 
 
“Section 4. Who shall be insured – TO SUPPORT THE AGRICULTURAL SECTOR,  
THE 
CORPORATION 
SHALL 
PROVIDE 
AGRICULTURAL 
INSURANCE 
PRODUCTS TO ELIGIBLE OR QUALIFIED FARMERS AND FISHERFOLK AS 
EVALUATED BY THE CORPORATION. THE BOARD SHALL PRESCRIBE THE 
CRITERIA TO EVALUATE THE ELIGIBILITY OF THE FARMERS, FISHERFOLK, 
AND 
FOOD 
PRODUCERS, 
WHICH 
CRITERIA 
SHALL 
INCLUDE 
THE 
VULNERABILITY AND RISK EXPOSURE OF FARMERS, FISHERFOLK, AND 
FOOD PRODUCERS TO FORTUITOUS NATURAL AND CLIMATIC EVENTS OR 
OUTBREAK OF PESTS AND DISEASES. THE BOARD SHALL ENSURE THAT THE 
COVERED 
FARMERS, 
FISHERFOLK, 
AND 
FOOD 
PRODUCERS 
ARE 
ADEQUATELY PROTECTED. THE CRITERIA SHALL BE ALIGNED WITH THE 
OBJECTIVES OF THE GOVERNMENT TO ENSURE THAT THE AGRICULTURAL 
INSURANCE PROGRAM IS SUSTAINABLE.” 
 
Section 5. Section 5 of Presidential Decree No. 1467, as amended, is hereby further 
amended, to read as follows: 
 
“Section 5. Rate of Premium and its Sharing. – The rate of premium, as well as the 


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allocated sharing thereof by the farmers, the lending institutions, the Government of 
the Republic of the Philippines (herein called the Government) and other parties, shall 
be determined by the Board of Directors of the Corporation: Provided, That the share 
of the Government in the premium cost in the form of premium subsidy, shall be limited 
to subsistence farmers: Provided, however, That each of these subsistence farmers is 
cultivating not more than THREE (3) hectares by HIM/HERSELF INCLUDING 
members of their households, the premium rate and sharing to be determined by the 
Board of Directors: Provided, further, That the premium share of the subsistence 
farmer, IF ANY, shall be reasonably affordable by HIM/HER: Provided, furthermore, 
That the Government shall share in the premium cost only in insurance coverage 
against unforeseen and unavoidable risks such as, but not limited to typhoons, 
droughts, outbreaks of pest and diseases: Provided, finally, That premium subsidy 
and/or insurance benefits shall upon the accumulation of surplus funds, be increased 
to such amount as may be determined by the Board taking into consideration that the 
Corporation has been established not only for profit but mainly to help the insured in 
their direct hours of need.” 
 
SECTION 6. TERM OF EXISTENCE – THE TERM OF LEGAL EXISTENCE OF THE 
PHILIPPINE CROP INSURANCE CORPORATION, AS PROVIDED IN SECTION 2.2 OF 
PRESIDENTIAL DECREE NO. 1467, AS AMENDED, IS HEREBY EXTENDED FOR A 
PERIOD OF TWENTY-FIVE (25) YEARS FROM ITS EXPIRATION ON 11 JUNE 2028, OR 
UNTIL 11 JUNE 2053. 
 
Section 7. Separability Clause – If any provision of this Act is declared unconstitutional, the 
remainder hereof not otherwise affected shall remain in full force and effect. 
 
Section 8. Repealing Clause. – All laws, decrees, orders, resolutions, instructions and rules 
and regulations or parts thereof which are inconsistent with this Act are hereby deemed 
repealed or modified accordingly. 
 
Section 9. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
 
Approved,