Republic of the Philippines

House of Representatives
Queson City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL NO. 14

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K. Romualdez and Jude A. Acidre

EXPLANATORY NOTE

Agriculture remains the backbone of the Philippine economy, employing a
significant portion of the population and ensuring national food security.
However, agricultural production is inherently vulnerable to risks such as
typhoons, floods, droughts, pest infestations, and diseases. These uncertainties
are exacerbated by climate change and economic volatility, placing farmers,
fisherfolk, and other agricultural stakeholders in a precarious position and
deterring much-needed investments in the sector.

In this context, agricultural insurance is a critical policy tool for enhancing the
resilience of farmers and encouraging increased credit access and market
participation. Recognizing this, Presidential Decree No. 1467 created the
Philippine Crop Insurance Corporation (PCIC) as the primary institution
responsible for providing crop insurance to Filipino farmers. However, the scope
of insurance under the original law has become insufficient to meet the modem
and diversified needs of the agricultural sector.

This bill seeks to further amend Sections 1 and 3.11 of Presidential Decree No.
1467, as amended, to expand the services of the PCIC and allow greater
participation from the private sector in delivering agricultural insurance. The
fundamental goals of this amendatory measure are as follows:

1. Expand the insurance coverage of the PCIC beyond traditional crop
insurance to include all agricultural commodities such as high-value crops,


livestock, aquaculture and fishery products, agroforestry, and forest
plantations, as well as non-crop agricultural assets like machinery,
equipment, transport facilities, and other infrastructure vital to agricultural
production;

2. Enable the PCIC to offer reinsurance services to agricultural cooperatives,
farmers’ associations, and private insurers, thereby fostering active private
sector participation and encouraging innovation and competition in the
agricultural insurance market; and

3. Support the generation of internal funds by authorizing the PCIC to float
bonds and expand into other insurance lines as necessary to fulfill its
mandate and respond to the changing needs of the agriculture sector.

By clearly articulating the State's policy to support a comprehensive agricultural
insurance program and encourage public-private collaboration, the bill also aims
to lower barriers to agricultural lending, support the modernization of the
agriculture sector, and build a more sustainable and risk-resilient rural economy.

We acknowledge Representatives Joey Sarte Salceda, Harris Christopher M.
Ongchuan, Marlyn L. Primicias-Agabas, John Tracy F. Cagas, and Wilbert
"Manoy" T. Lee, among others, for filing this bill during the Nineteenth Congress
and was approved on Third Reading.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

FE ND MARTIN G. ROMUALDEZ

JUDE #. ACIDRE ANDREW JULIAN K. ROMUALDEZ


N oar on

Republic of the Philippines

House of Representatives
Quezon City, Metra Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 14

Introduced by Representatives Ferdinand Martin G. Romualdez,
Andrew Julian K, Romualdez and Jude A. Acidre

AN ACT

EXPANDING THE SERVICES OF THE PHILIPPINE CROP
INSURANCE CORPORATION AND ENCOURAGING PRIVATE
SECTOR PARTICIPATION IN AGRICULTURAL INSURANCE,
FURTHER AMENDING SECTIONS 1 AND 3.11 OF
PRESIDENTIAL DECREE NO. 1467, CREATING THE
PHILIPPINE CROP INSURANCE CORPORATION, AS
AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. It shall be the policy of the State to establish, strengthen, and
maintain a comprehensive and responsive agricultural insurance program as a
vital mechanism for managing the risks inherent in agricultural production. This
program shall aim to protect and stabilize the income of agricultural producers
from losses arising from natural calamities, plant and animal diseases, pest
infestations, or other unforeseen events affecting all types of agricultural

commodities, including crops, livestock, aquaculture, and related agricultural


facilities and infrastructure. It shall also be the policy of the State to promote the
modernization of the agricultural sector by mitigating the risks that hinder its
development and limit broader market participation. To this end, the State shall
promote active participation of the private sector in delivering agricultural
insurance by authorizing the Philippine Crop Insurance Corporation (PCIC) to
undertake reinsurance agreements with private sector agricultural insurers, and to
expand its insurance services to cover livestock, aquaculture and fisheries, agro-
fisheries, and forest plantations.

SEC. 2. Section 1 of Presidential Decree No. 1467, as amended, is hereby
further amended, to read as follows:

“SEC. 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 [qualified] farmers against losses arising from natural
calamities, plant diseases, and pest infestations. [Initially,] [t]The
Corporation shall provide insurance coverage for ALL
AGRICULTURAL COMMODITIES, INCLUDING palay
crops, and [later on to] other crops, without prejudice to the
inclusion of other non-crop agricultural assets, such as [but not
limited to] LIVESTOCK, AQUACULTURE AND FISHERY,
AGROFORESTRY, FOREST PLANTATIONS, machineries,
equipment, transport facilities, and other related infrastructures, as
the Board of Directors of the Corporation may determine. Such
[crop] insurance shall cover, in every case, the cost of production
inputs, the value of the farmer's own labor and those of the members
of his household, 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 his immediate farm household or
employee [or the failure of the insured to follow proven farm
practices]. THE CORPORATION SHALL ALSO OFFER
REINSURANCE SERVICES FOR ENTITIES WILLING TO
OFFER AGRICULTURAL INSURANCE.”

SEC. 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, © INCLUDING
REINSURANCE AGREEMENTS WITH AGRICULTURAL
COOPERATIVES, FARMERS’ ASSOCIATIONS, AND
OTHER PRIVATE SECTOR PARTICIPANTS IN THE
AGRICULTURAL INSURANCE MARKET, and extending
coverage to other areas of agriculture, SUCH AS LIVESTOCK,
AQUACULTURE AND FISHERY, AGROFORESTRY, OR
FOREST PLANTATIONS, 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.”

SEC. 4, All laws, decrees, executive orders, proclamations, and
administrative regulations, or parts thereof inconsistent herewith are hereby

repealed or modified accordingly.


4

2 SEC. 5. This Act shall take effect fifteen (15) days after its publication in
3 the Official Gazette or in any newspaper of general circulation.

Approved,