Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
MANDATING THE INSURANCE OF ALL 
GOVERNMENT PROPERTIES AND INTEREST WITH THE 
GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS), 
AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Each year, numerous typhoons enter the Philippines Area of Responsibility and several 
of these typhoons are but catastrophic. In recent events, numerous experiences have shown us 
the significance of having our government properties insured. Last December 2016, Typhoon 
Nina struck the heart of the Bicol Region and its neighbors in our country. Several government 
infrastructures were devastated by the catastrophic typhoon and numerous infrastructures were 
owned by different government offices and various municipalities. In the case of the national 
government agencies, their properties were insured and indemnified by the GSIS for damages 
wrought by the typhoon. However, most of the damaged properties belonged to municipalities 
were not insured. Municipal administrations have appealed for financial aid not only to address 
the impact of the disaster to their citizens but also to rehabilitate government properties that 
were damaged within their jurisdiction. 
Evidently, these municipalities have to rely on appropriations from the national 
government, financial aid from donors, and their strained budgets to fund the rehabilitation of 
their damaged properties. This common experience of municipalities of suffering the brunt of 
several typhoons and other disasters makes it imperious for municipalities to insure their 
respective properties. It is in their superlative interest if their properties were to be insured than 
be unprotected to the risk of non-indemnification in case of damage during a natural calamity. 
Hence, mandating the insurance of all government properties and interest with the Government 
Service Insurance System is a must in developing and promoting a sound social security system 
by means of indemnifying or compensating the Government for any damage, or loss of, its 
properties due to fire, earthquake, typhoon, or other natural catastrophes. This bill seeks to 
propose a provision mandating universal insurance of public school buildings whose premiums 
shall be reflected in the National Disaster Risk Reduction and Management Fund (NDRRMF) 
in the General Appropriations Act (GAA) and whose claims proceeds shall be automatically 
July 1, 2022 
8:00 am
675


Page | 2 
released to the town or city where the school building is located, or to the barangays whose 
population is higher than 2,500 based on the latest PSA census. 
In view of the foregoing, the passage of this bill is earnestly sought 
JOEY SARTE SALCEDA 


Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
MANDATING THE INSURANCE OF ALL 
GOVERNMENT PROPERTIES AND INTEREST WITH THE 
GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS), 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Property Insurance Act of 
2022.” 
SEC. 2. Purpose. – In order to indemnify or compensate the Government as defined in 
this Act for any damage to, or loss of, its properties due to fire, earthquake, typhoon, or other 
natural catastrophes there is hereby established the "General Insurance Fund" (hereinafter the 
“Fund”), which shall consist of all moneys resulting from the liquidation of the insurance 
constituted in section three hundred forty of the Revised Administrative Code and from 
premiums and other incomes. 
SEC. 3. Administration of the Fund / Powers Granted to the Government Service 
Insurance System (GSIS). – The administration of the Fund is hereby placed under the 
Government Service Insurance System with the following authority: 
(a) to engage in the business and operation of all kinds of insurance and reinsurance
and all other forms of undertaking to indemnify any person or party against loss,
damage, or liability, including third party liability, arising from unknown or
675


Page | 2  
 
contingent events, except life insurance, subject to pertinent Bangko Sentral ng 
Pilipinas  rules, regulations and policies; 
(b) to reinsure with insurance and reinsurance companies in the Philippines and abroad, 
under such terms and conditions that may be mutually agreed upon, any excess risk 
the GSIS may deem advisable, subject to pertinent Bangko Sentral ng Pilipinas 
rules, regulations and policies; 
(c) to issue policies denominated in any foreign currency; 
(d) to issue surety and/or in any performance bonds both in Philippine peso and/or in 
foreign currency, provided that the amount of the bond to be issued on any one risk 
or undertaking shall be limited to ten per centum (10%) of the net worth of the 
General Insurance Fund, and that the excess over said limit shall be reinsured with 
domestic and/or foreign insurance and reinsurance companies; Provided, That the 
Fund's bonding exposure in any foreign currency shall be covered by a minimum 
amount of foreign exchange assets in accordance with rules and regulations to be 
formulated by the System in consultation with the Insurance Commission subject 
to Bangko Sentral ng Pilipinas rules, regulations and policies; 
(e) to insure all insurable assets serving as collaterals for loans extended by government 
financial institutions; 
(f) to prescribe necessary rules and regulations, including such incidental powers as 
are necessary for its operation; 
(g) to appoint personnel, who are certified as eligible by the Civil Service Commission, 
prescribe their duties, and fix their remuneration. 
 
SEC. 4. Definitions. – For the purposes of this Act – 
(a) “GSIS” means the Government Service Insurance System created under 
Commonwealth Act Numbered One hundred and eighty-six, as amended by 
Presidential Decree (P.D.) No. 1146 and further amended by Republic Act (R.A.) 
No. 8291, otherwise known as the “GSIS Act of 1997”. 
(b) “Fund” means the “General Insurance Fund” created under this Act. 
(c) “Property” includes vessels and craft, motor vehicles, machineries, permanent 
buildings, properties stored therein, including contents, furniture, fixtures, 
equipment, improvements or in buildings rented by the Government, or properties 
in transit. 


Page | 3  
 
(d) The word “Government” as used in this Act refers to the national, provincial, city, 
or municipal government, agency, commission, board or enterprises owned or 
controlled by the Government and other agency, department, bureau, office, 
instrumentalities, and chartered institution of government, as defined under Section 
2 of E.O. No. 292. 
(e) “Insurable interest” means every interest in property, whether real or personal, or 
any relation thereto, or liability in respect thereof, of such nature that a contemplated 
peril might directly indemnify the insured. Accordingly, the insurable interest of 
government parent, subsidiary and acquired asset corporations, including 
government financial institutions, as these corporations are defined in Presidential 
Decree No. 2029, shall also extend to their physical assets which by declared policy 
of the government are required to be privatized. 
 
SEC. 5. Every Government is hereby required to insure with or secure insurance from 
the GSIS on or of all properties or assets, contracts or agreements, causes or rights of action, 
or other insurable interests, to the extent of the interests of the government, with the Fund 
against any insurable risk herein provided and pay the premiums thereon, which, however, 
shall not exceed the premiums charged by private insurance companies. 
No property and/or insurable interest of the Government, or any part or portion thereof, 
shall be covered by or insured with, and no bonds to the extent of such interest shall be obtained 
from, any entity, firm, person, corporation, or partnership, or any other juridical person other 
than the GSIS. Provided, however, That the GSIS reserves the right to disapprove the whole or 
a portion of the amount of insurance applied for: Provided, further, That such property or part 
thereof as may not be insurable or acceptable for insurance may be insured with any private 
insurance company. 
 
SEC. 6. Collection and payment of premiums. – In accordance with such rules and 
regulations as the GSIS may prescribe under section three of this Act, the premiums on 
insurance under section five hereof shall be paid to the GSIS by the government concerned. 
 
SEC. 7. Custody of Statistical Data for Determination of Risk and Rates of Premiums. 
(a) There shall be collected, classified, analyzed, and kept under the custody of the 
GSIS such statistical data as may be necessary for the proper determination of risks 
and rates of premiums for the issuance of properties herein defined. 


Page | 4  
 
(b) The records and accounts of the Fund shall be kept separate and distinct from those 
of other funds of the System. 
(c) During the month of October of each year, the GSIS shall submit to the President 
of the Philippines a report of the operations of the Fund during the preceding year. 
 
SEC. 8. The Chairman of the Commission on Audit or his/her authorized representative, 
and the Government Corporate Counsel shall be the ex-officio auditor and legal adviser and 
consultant of the Fund, respectively. The Chairman of the Commission on Audit, or his/her 
authorized representative, shall submit to the System soon after the close of each fiscal year 
audited statements showing its financial condition and progress for the fiscal year just closed 
and the actuary shall likewise make an actuarial examination and valuation of the fund. 
 
SEC. 9. Government Guarantee. – The Government of the Republic of the Philippines 
hereby guarantees the fulfillment of the obligations of the Fund when and as they shall become 
due. 
 
SEC. 10. Inventory of Government Property. – Upon approval of this Act, the GSIS 
shall require the inventory of the properties belonging to the Government with the 
corresponding appraised values, and advise the Government concerned of the total premiums 
each shall pay to the Fund. 
 
SEC. 11. Duty to Include Premiums for Insurance of Government Properties in Annual 
Appropriations. – Each Government as defined herein shall include in its annual appropriation 
the amount necessary to cover the premiums for the insurance of its properties and other 
properties with government insurable interest during each fiscal period and pay the same 
immediately to the GSIS as provided in section ten hereof. 
 
SEC. 12. Penal Provisions. – 
(a) Failure of heads of the offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or 
controlled corporations and government financial institutions to insure the 
properties and insurable interest of Government shall be a ground for the filing of 
administrative disciplinary action against the erring officer(s) and/or employee(s). 
Such erring officer(s) and/or employee(s) shall, after hearing and due proceedings, 


Page | 5  
 
be penalized with suspension from the service without pay from six (6) months to 
one (1) year, at the discretion of the disciplining authority. 
 
(b) Failure of heads of the offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or 
controlled corporations and government financial institutions to comply with the 
submission of the inventory under Section 10 of this Act, despite demand,  within 
the periods prescribed under the Implementing Rules and Regulations (IRR), or to 
comply with any provision of this Act shall be a ground for the filing of 
administrative disciplinary action against the erring officer(s) and/or employee(s). 
Such erring officer(s) and/or employee(s) shall, after hearing and due proceedings, 
be penalized with suspension from the service without pay from six (6) months to 
one (1) year, at the discretion of the disciplining authority. 
(c) Failure of heads of the offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or 
controlled corporations and government financial institutions to include in the 
annual budget the amount corresponding to the premium payments for the insurance 
of the properties and insurable interest of the Government, shall be a ground for the 
filing of administrative disciplinary action against the erring officer(s) and/or 
employee(s). Such erring officer(s) and/or employee(s) shall, after hearing and due 
proceedings, be penalized with suspension from the service without pay from six 
(6) months to one (1) year, at the discretion of the disciplining authority. 
(d) The heads of the offices of the national government, its political subdivisions, 
branches, agencies and instrumentalities, including government-owned or 
controlled corporations and government financial institutions, and the personnel of 
such offices who are involved in the payment of premiums due the GSIS who shall 
fail, refuse or delay the payment, turnover, settlement or delivery of such accounts 
to the GSIS within sixty (60) days from the time that the same shall have been due 
and demandable shall be liable  administratively. Such erring officer(s) and/or 
employee(s) shall, after hearing and due proceedings, be penalized with suspension 
from the service without pay from six (6) months to one (1) year, at the discretion 
of the disciplining authority. 
(e) Any employee who appropriates or keeps premiums payable or deliverable to the 
GSIS, or takes or misappropriates or uses the same for any purpose other than 


Page | 6  
 
authorized by this Act, or permits another person to take, misappropriate or use of 
premiums by expressly consenting thereto, or through abandonment or negligence, 
or is otherwise guilty of the misappropriation of said fund or property, in whole or 
in part, shall suffer the penalties provided in Article 217 of the Revised Penal Code, 
and in addition, shall suffer absolute perpetual disqualification from holding public 
office and from practicing any profession or calling licensed by the government. 
(f) Any employee who, fails to settle the premiums payable or deliverable to the GSIS 
within sixty (60) days from the date they should have been paid under Section 6, 
shall be presumed to have misappropriated such premiums and shall suffer the 
penalties provided in Article 315 of the Revised Penal Code, and in addition, shall 
suffer absolute perpetual disqualification from holding public office and from 
practicing any profession or calling licensed by the government. 
(g) Whoever fails or refuses to comply with the provisions of this Act or with the rules 
and regulations adopted by the GSIS, shall be punished by a fine of not less than 
Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos 
(P20,000.00) or imprisonment of not less than six (6) years and one (1) day to 
twelve (12) years, or both, at the discretion of the court. 
(h) For the charges or complaints referred to in this section, the liabilities therein set 
forth shall be construed as waiver of the State of its immunity from suit, hence, the 
above-mentioned officials and/or personnel may not invoke the defense of non-
suability of the State. 
 
 SEC. 13. Implementing Rules and Regulations. – The implementing rules and 
regulations to carry out the provisions of this Act shall be adopted and promulgated by the 
GSIS not later than ninety (90) days after the approval of this Act. 
 
SEC. 14. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, 
Functions and Activities. – Nothing in this Act shall be construed to repeal, amend or limit any 
provision of existing laws, Presidential Decrees and Letters of Instructions, not otherwise 
specifically inconsistent with the provisions of this Act. 
 
SEC. 15. Separability Clause. – Should any provision of this Act or any part thereof be 
declared invalid, the other provisions, so far as they are separable from the invalid ones, shall 
remain in force and effect. 


Page | 7  
 
 
SEC. 16. Repealing Clause. – Republic Act No. 656, and Chapter sixteen of the Revised 
Administrative Code, as amended, are hereby repealed; Provided, that the properties insured 
under the Property Insurance Fund shall continue to be governed by existing law until they 
shall have been insured anew with the fund under the provisions of this Act. 
All laws and any other law or parts of law specifically inconsistent herewith are hereby 
repealed or modified accordingly: Provided, That the rights under the existing laws, rules and 
regulations vested upon or acquired by an employee who is already in the service as of the 
effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to 
the effectivity of this Act, a new employee or an employee who has previously retired or 
separated and is reemployed in the service shall be covered by the provisions of this Act. 
 
SEC. 17. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,