HCUSEW REPRESENTATIVES

RECEIVED
Republic of the Philippines care _Q7 SEP 2016
HOUSE OF REPRESENTATIVE:
Quezon City

SEVENTEENTH CONGRESS,
First Regular Session

House Bill No.3534

TON UNIT
D NOEX SEQVICE

Introduced by Hon. ROSANNA “RIA” V. VERGARA

EXPLANATORY NOTE

The Philippine Crop Insurance Corporation (PCIC) is a government owned and controlled
corporation created under PD 1467. It was later amended by PD 1733 and further amended by RA
8175. It is the implementing agency of the government's agricultural insurance program. PCIC is
an attached agency of the Department of Agriculture and its principal mandate is to provide
insurance protection to farmers against losses arising from natural calamities, plant diseases and

pest infestations of their crops.

The problem with the PCIC is that it has continually failed to adequately protect our
subsistence farmers from the rigors of calamities, often paying far less than what the actual value
of the projected harvest is. This bill seeks to amend the PCIC Charter to require a payment
between the range of eighty percent (80%) to a hundred percent (100%) of the actual value of the
projected harvest of our farmers. It is only by properly compensating the farmers that will we fully
protect their interest and those of their families. This is very much needed at present and in the
years to come considering the devastation brought about by climate change which has led to
stronger typhoons and more unpredictable weather patterns.

In light of the foregoing, the immediate passage of this bill is earnestly requested.

ROSA! means
Represettative, 3rd District of Nueva Ecija



wRene

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH CONGRESS,
First Regular Session

House Bill No. 35.3.4

Introduced by Hon, ROSANNA “RIA” V. VERGARA

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1467,
AS AMENDED BY UBLIC ACT NO. 8175,
OTHERWISE KNOWN AS THE REVISED CHARTER OF
THE PHILIPPINE CROP INSURANCE CORPORATION ACT

Be it enacted by the Senate and House of Representati
assembled:

's of the Philippines in Congress

SECTION 1. Section 5 of Presidential Decree No. 1467, as amended by Republic Act No.
8175, also known as the “Revised Charter of the Philippine Crop Insurance Corporation Act of

1995,” is hereby further amended to read as follows:

Sec. 5. Rate of Premium and [Its Sharing] AMOUNT OF INDEMNITY.
— The rate of premium, as well as the 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 seven (7) hectares by themselves or with the help of the labor of the
members of their households or hired labor, the premium rate and sharing to be
determined by the Board of Directors subject to approval by the President of the

Philippines: provided, further, that the premium share of the subsistence farmer
shall be reasonably affordable by him: provided, furthermore, that the Government

shall share in the premium cost only in insurance coverage against unforeseen and

unavoidable risks such as, but not i

ited to, typhoons, droughts, outbreaks or pests

and diseases: provided, finally, that premium subsidy and/or insurance benefits


1 shall, upon the accumulation of surplus funds, be increased to such amount as may

2 be determined by the Board, taking into consideration that the Corporation has been
3 established not only for profit but mainly to help the insured in their direst hours of

4 need.

5 THE AMOUNT OF INDEMNITY SHALL BE AT LEAST EIGHTY

6 PERCENT (80%) BUT NOT MORE THAN ONE HUNDRED PERCENT (100%)

7 OF THE ACTUAL VALUE OF THE POTENTIAL HARVEST OF THE CROPS,

8 SUBJECT TO THE APPROVAL OF THE PCIC BOARD. THE BOARD SHALL

9 TAKE INTO ACCOUNT THE ACTUAL COST OF PRODUCTION INPUTS

10 ALREADY APPLIED AT THE TIME OF LOSS PER FARM PLAN AND

i BUDGET, SUBJECT TO LIMITS STIPULATED IN THE POLICY CONTRACT,

12 PRORATED COST OF THE HARVESTED CROPS, THE SALVAGE VALUE,

13 IF ANY, AND THE PERCENTAGE OF YIELD LOST."

14 SECTION 2. Repealing Clause. — Any law, presidential decree or issuance, executive

15 order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with,

16 the provisions of this Act is hereby repealed, modified, or amended accordingly.

17 SECTION 3. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
18 publication in at least two (2) newspapers of general circulation.

Approved,