Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE 
The Philippine Crop Insurance Corporation (PCIC) is a government owned and 
controlled corporation created as the implementing agency of the government's 
agricultural insurance program. PCIC is an attached agency of the Department 
of Agriculture. 
In 1976, an Interagency Committee for the Development of Crop Insurance 
undertook a nine-month full-blown feasibility study on the creation of a crop 
insurance program in the Philippines. 
The study concluded that the agricultural insurance system will address not only 
the welfare aspect of the after-loss event but also help stabilize farm incomes 
and reverse the “risk-averse” nature of farmers. 
This House Bill seeks to provide Modernization Funding to the Philippine Crop 
Insurance Corporation (PCIC), to push them to invest more in new technologies
that would help increase national productivity. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO 
November 7, 2022
8:15 am
5798


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE 
PHILIPPINE CROP INSURANCE CORPORATION (PCIC), 
INCREASING AND REORGANIZING ITS ADMINISTRATION, TO 
PROVIDE INSURANCE PROTECTION TO FARMERS AGAINST 
LOSSES ARISING FROM NATURAL CALAMITIES, PLANT DISEASES 
AND PEST INFESTATIONS 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 shall hereby be a declared 
policy of the State to promote a corporation that provides protection against 
damage to/loss of non-crop agricultural assets including but not limited to 
machineries, equipment, transport facilities and other related infrastructures 
due to peril/s insured against. Philippines is vulnerable to natural disasters 
which cause devastation on crops and miseries to agricultural producers and 
lenders of agricultural credit. Because of the marginality of most landholdings, 
the result of these losses is devastating to farmers’ finances. 
The PCIC is a government owned and controlled corporation (GOCC) created by 
virtue of Presidential Decree 1467 (June 11, 1978), later on amended by PD 1733 
5798


(October 21, 1980) and further amended by Republic Act 8175 (December 29, 
1995), as the implementing agency of the government’s agricultural insurance 
program. 
The state shall continually improve the effectiveness of our Quality Management 
System towards equitable development for improved quality of life for all. 
The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
SECTION 
2. 
MODERNIZATION FUNDING. – The amount of Five 
Hundred Million Pesos (Php 500,000,000.00) for the operation and 
administration of the Philippine Crop Insurance Corporation (PCIC) shall be 
chargeable against funds for the purpose and other sources recommended by 
the Department of Budget and Management (DBM). Thereafter, appropriations 
for the Philippine Crop Insurance Corporation (PCIC) shall be included in the 
budget proposals under the Department Agriculture (DA). 
 
The Department of Budget and Management (DBM) shall rationalize the existing 
organizational structure and staffing pattern of the in accordance with the 
provisions of this Act and relevant compensation and position classification laws, 
rules and regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
3. 
A PHILIPPINE CROP INSURANCE CORPORATION 
(PCIC) MODERNIZATION FUND – There is hereby created the (PCIC) 
Modernization Fund to be used exclusively for the (PCIC) Modernization Program. 


The (PCIC) Modernization Fund shall be administered by the Secretary of the DA 
in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DA shall 
prepare an annual report on the status of the implementation of the (PCIC) 
Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee of Agriculture and Food of the Senate 
and the House of Representatives. 
SECTION 
5. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the Philippine Crop Insurance Corporation 
(PCIC) shall continue to develop, modernize and constantly update its 
operational capabilities to keep pace with best global practices. 
SECTION 
6. 
POWERS AND FUNCTIONS. – The Philippine Crop 
Insurance Corporation (PCIC) shall continue to exercise and uphold the 
following powers and functions; but not limited to: 
The PCIC’s principal mandate is to provide insurance 
protection to farmers against losses arising from natural 
calamities, plant diseases and pest infestations of their 
palay and corn crops as well as other crops. 
 
The corporation also provides protection against damage 
to/loss of non-crop agricultural assets including but not 
limited to machineries, equipment, transport facilities and 


other related infrastructures due to peril/s insured 
against.  
 
The Philippines is vulnerable to natural disasters which 
cause devastation on crops and miseries to agricultural 
producers and lenders of agricultural credit.  
 
Because of the marginality of most landholdings, the result of these losses is 
devastating to farmers’ finances 
 
SECTION 
7. 
INCREASE OF PERSONNEL. – The Philippine Crop 
Insurance Corporation (PCIC) shall maintain the sufficient staffing pattern. 
Hence, it is authorized to increase its manpower to meet such required and may 
continue to increase personnel per percentage rate increase of committed 
mandates annually or as the need arises. 
SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 


SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
Approved,