NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
es-tUu-e
of ll]f
23 JAN-4 PI2 55
SENATE
S. No. 1635
RliCEIVtO BV
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCTTO
AN ACT
REQUIRING MANDATORY INSURANCE OF ALL BUILDINGS AND OTHER 
PHYSICAL STRUCTURES OWNED BY LOCAL GOVERNMENT UNITS, 
AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 7160, OTHERWISE 
KNOWN AS THE 'LOCAL GOVERNMENT CODE'
EXPLANATORY NOTE
The Philippines sits at a boundary of the earth's major tectonic plates while a 
huge part of its territory straddle the world's notorious "typhoon belt" . As a result, 
fearsome typhoons, volcanic eruptions and strong earthquake are three of the 
common naturai phenomena that are reguiarly experienced by the country. The 
Philippines is one of the most typhoon affected countries giobally, with about 20 
tropical cyclones traversing in the country's area of responsibility each year.
According to the Asian Centre for Fiood Control (ACFC), 8 of the world's 10 
most disaster-prone cities are in the Philippines. Just last October 2022, more than 
4,000,000 people were affected by the severe tropical storm Paeng. Over 28,000 
houses were damaged - 3,061 were fully damaged and 24,970 were partially damaged 
causing an estimated cost of infrastructure damage of PHP 4.174 biilion. As a result 
of the strong winds and heavy rains, iandsiides and flooding incidents occurred.1
1IFRC DREF Application: Philippines Severe Tropical Storm Paeng 2022: 
file:///Users/admin/Downloads/M DRPH050do.pdf


In addition, the Philippines form part of the so called "ring of fire", where many 
of Earth's volcanic eruptions and earthquakes occur. The country has more than 300 
volcanos, of which 24 are active, according to Philvolcs.2
It is in this light that this proposed legislation is pushed in order to mitigate the 
effects of these natural disasters, particularly to the properties of local government 
units, in cases of damages and other risk. This bill mandates that the LGUs insure its 
buildings and structures under its accountability and responsibility. Furthermore, it 
specifically mentioned the submission of the list of the all buildings and physical 
structure owned by the local government units for property insurance valuation.
In view of the foregoing, the swift passage of this bill is earnestly sought.
JOSEPH VICTOR G. EJERCITO
2 Philippines: Why is it prone to typhoons( on top of earthquakes and volcanic eruptions): 
https://gulfnews.com/world/asia/philippines/philippines-whv-is-it-prone-to-tvphoons-on-top-of-earthquakes-
and-volcanic-eruptions-1.1659616588644


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1635
o( t!',r
23 JAN-4 P'2 55
Rl-aiVEOBV. _
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
REQUIRING MANDATORY INSURANCE OF ALL BUILDINGS AND OTHER 
PHYSICAL STRUCTURES OWNED BY LOCAL GOVERNMENT UNITS, 
AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 7160, OTHERWISE 
KNOWN AS THE 'LOCAL GOVERNMENT CODE'
Be it enacted by the Senate and the House of Representatives of the Philippines, in 
Congress assembled:
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SECTION 1. Section 374 of Republic Act No. 7160, otherwise known as the
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'Local Government Code of 1991', is hereby amended to read as follows:
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"Section 374. Establishment of an Archival System. - Every local government 
unit shall provide for the establishment of an archival system to ensure the 
safety and protection of all government property, public documents or records 
such as records of births, marriages, property inventory, land assessments, 
land ownership, tax payments, tax accounts, and business permits, and such 
other records of documents of public interest in the various departments and 
offices of the provincial, city, or municipal government concerned. PROVIDED, 
THAT, THIRTY DAYS AFTER THE CERTIFICATION OF THE LOCAL 
GOVENRMENT UNIT'S BALANCE SHEET, THE PROVINCIAL OR CITY 
GENERAL SERVICES OFFICER, OR MUNICIPAL MAYOR, AS THE CASE 
MAY BE, SHALL SUBMIT TO THE GSIS ACTUARIAL SERVICES A LIST 
OF ALL BUILDINGS AND OTHER PHYSICAL STRUCTURES OWNED BY


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THE LOCAL GOVERNMENT UNIT FOR PROPERTY INSURANCE 
VALUATION."
Sec. 2. Section 375 of Republic Act No. 7160, otherwise known as the 'Local 
Government Code of 1991', is hereby amended to read as follows:
"Section 375. Primary and Secondary Accountability for Government Property.
- (a) XXX
(b) XXX
(c) Buildings and other physical structures shall be under the accountability and 
responsibility of the provincial or city general services officer of the municipal 
mayor or punong barangay, as the case may be. IN VIEW OF THIS, THE 
PROVINCIAL OR CITY GENERAL SERVICES OFFICER, MUNICIPAL 
MAYOR, AND PUNONG BARANGAY SHALL CAUSE TO INSURE ALL 
BUILDINGS AND OTHER PHYSICIAL STRUCTURES UNDER THEIR 
ACCOUNTABILITIY AND RESPONSIBILITY AGAINST ANY INSURABLE 
RISK.
(d) XXX. "
Sec. 3. Section 447 of Republic Act No. 7160 is hereby amended to read as 
follows:
"Section 447. Powers, Duties, Functions and Compensation - (a) xxx
(1) xxx
(2) xxx
(v) Appropriate funds for the construction, INSURANCE, and 
maintenance of the rental of buildings for the use of the municipality 
and, upon the majority vote of all the members of the sangguniang 
bayan, authorize the municipal mayor to lease to private parties such


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public building held in a proprietary capacity, subject to existing laws, 
rules and regulations;"
Sec. 4. Section 458, paragraph (a), (2), (v)
"Section 468. Powers, Duties, Functions and Compensation - (a)xxx
(1) xxx
(2) XXX
(v) Appropriate funds for the construction, INSURANCE, and 
maintenance of the rental of buildings for the use of the city and, upon 
the majority vote of all members of the sangguniang panglungsod, 
authorize the city mayior to lease to private parties such public buildings 
held in a proprietary capacity, subject to existing laws, rules and 
regulations;"
Sec. 5. Section 468 of Republic Act No. 7160, is hereby amended to read as 
follows:
"Section 468. Powers, Duties, Functions and Compensation - (a)xxx
(1) xxx
(2) XXX
(v) Appropriate funds for the construction, INSURANCE, and maintenance 
of the rental of buildings for the use of the province and, upon themajority 
vote of all the members of the sangguniang panlalawigan, authorize the 
provincial governor to lease to private parties such public buildings held in 
a proprietary capacity, subject to existing laws, rules and regulations;"
Sec. 6. Section 5 of Republic Act No. 656, otherwise known as the 'Property 
Insurance Law', is hereby amended to read as follows:
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"Section 5. Every government [,-excGpt a-municipal government below first
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dass,] is hereby required to insure its properties, with the Fund against any insurable


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risk herein provided and pay the premiums thereon, which, however, shall not exceed 
the premiums charged by private insurance applied for: Provided, further. That such 
property or pat thereof as may not be insurable or acceptable for insurance may be 
insured with any private insurance company. £A- municipal government below first 
class may upon application insure its properties in the Fund under such rules and
regulations as the System may prescribe.]
Sec. 7. Implementing Rules and Regulations. - Within sixty (60) days from the 
effectivity of this Act, the Department of Interior and Local Government, in 
consultation with the Bureau of Local Government Finance, shall promulgate the rules 
and regulations for the effective implementation of this Act. The IRR issued pursuant 
to this section shall take effect thirty (30) days after its publication in a newspaper of 
general circulation.
Sec. 8. Separability Clause. - If any provision of this Act is declared invalid or 
unconstitutional, the provisions not affected thereby shall continue to be in full force 
and effect.
Sec. 9. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
parts thereof which are contrary to or inconsistent with the provisions of this Act are 
hereby amended, repealed or modified accordingly.
Sec. 10. Effectivity. - This Act shall take effect immediately after fifteen (15) 
days from its publication in the Official Gazette or in a newspaper of general 
circulation.
Approved,