Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

House BiLL NoLOO8

Introduced by MAGBUBUKID PARTY-LIST Representative FERDINAND “B1” L. BELTRAN

EXPLANATORY NOTE

Nanatiling gulugod ng ekonomiya ng bansa ang agrikultura na siyang nagbibigay ng
kabuhayan sa milyun-milyong Pilipino, lalo na sa mga rural at kulang-sa-serbisyong lugar.
Gayunman, patuloy na hinaharap ng sektor ang matitinding hamon: madaling tamaan ng
mga natural na kalamidad, pesteng salot, mga sakit, at papatindi pang epekto ng climate
change. Nagdudulot ang mga panganib na ito ng malalaking pagkaluging ekonomiko na
pumipigil sa pamumuhunan, pumipigil sa produktibidad, at iniiwan ang mga magbubukid
at mangingisda sa paulit-ulit na siklo ng kahirapan at utang. Upang mabawasan ang mga
panganib na ito at maisulong ang katatagan ng sektor, mahalaga ang isang tumutugon at
inklusibong sistema ng agricultural insurance.

Itinatag ang Philippine Crop Insurance Corporation (PCIC) sa bisa ng Presidential
Decree No. 1467 upang magbigay ng crop insurance laban sa natural na panganib at
sakuna, Bagaman isang hakbang pasulong ang pagkakatatag nito, napatunayang hindi
sapat ang saklaw ng mga serbisyo nito—na pangunahing nakatuon sa palay—para
tugunan ang malawak na pangangailangan ng iba’t ibang subsektor ng agrikultura tulad
ng livestock, aquaculture, agroforestry, at fisheries. Dagdag pa rito, nananatiling limitado
ang akses sa agricultural insurance dahil sa mga estruktural at pinansiyal na hadlang, pati
na rin sa kakulangan ng makabuluhang partisipasyon mula sa pribadong sektor.

Ang panukalang ito ay nakabatay sa konstitusyonal na mandato na isulong ang
komprehensibong pag-unlad sa kanayunan at agrarian reform (Article XIII, Section 5) at
tiyakin ang patas na pamamahagi ng mga oportunidad at yaman, lalo na para sa mga nasa
laylayan (Article XII, Section 1). Kaakibat din ito ng polisiya ng Estado sa Section 1 ng
panukalang batas na bumuo ng sapat na agricultural insurance program bilang
mekanismo sa pamamahala ng panganib at pananatili ng katatagan sa sektor ng
agrikultura.

Ang panukalang ito ay naaprubahan ng mababang kapulungan ng Kongreso noong
19% Congress at layunin ng nito na i-modernisa ang sistema ng agricultural insurance ng
bansa sa pamamagitan ng pagpapalawak ng mga serbisyo ng PCIC, pagtataguyod ng
kolaborasyon kasama ang pribadong sektor, at pagsusulong ng mas matatag at inklusibong
ekonomiyang rural. Dahil kritikal ang papel ng sektor ng agrikultura sa pambansang
seguridad sa pagkain at pag-unlad sa kanayunan, napapanahon at agarang kinakailangan
ang pag-apruba ng panukalang ito.




Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

House BILL No.1008

Introduced by MAGBUBUKID PARTY-LIST Representative FERDINAND “B1” L. BELTRAN

ONOaORWON =

©

11
12

13
14
15
16
17

AN ACT
EXPANDING THE SERVICES OF THE PHILIPPINE CROP INSURANCE CORPORATION
AND ENCOURAGING PRIVATE SECTOR PARTICIPATION IN AGRICULTURAL
INSURANCE, FURTHER AMENDING 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 develop and support an adequate
agricultural insurance program as a mechanism for managing the risks inherent in
agriculture and stabilizing the financial fluctuations suffered by agricultural producers in
case of loss on all agricultural commodities, whether crops or livestock, and including the
agricultural facilities and related infrastructures, with the end in view of encouraging

lending institutions to extend credit to the agricultural sector.

It shall also be the policy of the State to promote the modernization of the
agricultural sector by mitigating the risks inherent to the industry and which increase the

barriers to increased market participation in businesses related to agriculture.

Towards this end, the State shall encourage active private sector participation in
extending agricultural insurance to members of the agricultural sector by allowing the
Philippine Crop Insurance Corporation to undertake reinsurance agreements with private
sector agricultural insurers and to extend its insurance services to livestock, aquaculture

and fishery, agro-fishery, and forest plantation insurance.


ONOaRWN =

©

"1
12
13
14
15
16
7
18
19
20
21
22
23
24
25

26
27

28
29

31
32
33

35
36
37
38

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


1 insurance needs of the target sector and to do and perform acts and things

2 and to exercise all the general powers conferred by law upon the

3 Corporation as are incidental or conducive to the attainment of the

4 objectives of the Corporation.”

5

6 SEC. 4. Subsection 9.1, Section 9 of Presidential Decree No. 1467, as

7 amended, is hereby further amended by deleting the entire provision, and in lieu

8 thereof, insert the following:

9 “9.1, THE POWERS OF THE PCIC SHALL BE VESTED IN AND EXERCISED

10 BY ITS BOARD OF DIRECTORS, COMPOSED OF EIGHT (8) MEMBERS AS

1 FOLLOWS:

12 41. SECRETARY OF FINANCE, AS EX OFFICIO CHAIRPERSON;

13 2. PRESIDENT OF THE PCIC AS EX OFFICIO VICECHAIRPERSON;

14 3. PRESIDENT OF THE LANDBANK;
15 4. SECRETARY OF THE DEPARTMENT OF AGRICULTURE (DA);
16 5. ONE (1) REPRESENTATIVE FROM THE PRIVATE INSURANCE
17 INDUSTRY TO BE NOMINATED BY THE SECRETARY OF FINANCE; AND
18 6. THREE (3) REPRESENTATIVES FROM THE SUBSISTENCE FARMERS’
19 SECTOR, PREFERABLY REPRESENTING AGRARIAN REFORM
20 BENEFICIARIES, COOPERATIVES, OR ASSOCIATIONS COMING FROM
21 LUZON, VISAYAS, AND MINDANAO, WHO SHALL BE SELECTED AND
22 NOMINATED BY THE DIFFERENT FARMERS’ ORGANIZATIONS OR
23 COOPERATIVES.”
24
25 SEC. 5. Subsection 9.4, Section 9 of Presidential Decree No. 1467, as amended, is
26 hereby further amended by deleting the entire provision, and in lieu thereof, insert the

27 following:

28 “9.4 THE CHAIRPERSON AND THE MEMBERS OF THE BOARD SHALL
29 EACH RECEIVE PER DIEM PURSUANT TO EXISTING LAWS, FOR EACH
30 MEETING OF THE BOARD ACTUALLY ATTENDED: PROVIDED, THAT IN
31 THE CASE OF THE REPRESENTATIVES OF THE SUBSISTENCE
32 FARMERS’ SECTOR, THE BOARD IS AUTHORIZED TO PROVIDE FUNDS
33 TO DEFRAY THE COST OF REASONABLE TRAVEL EXPENSES AND, IF
34 NECESSARY, SUBSISTENCE EXPENSES IN ADDITION TO PER DIEM.”

35

36 SEC. 6. Section 11-B of Presidential Decree No. 1467, as amended, is hereby further
37 amended by deleting the entire provision, and in lieu thereof, insert the following:

38 “SEC. 11-B. NO CLAIM BENEFITS. - ANY INSURED FARMER WHO HAS NOT
39 FILED ANY CLAIM DURING THE IMMEDIATELY PRECEDING THREE (3)


CROP SEASONS, OR ANY INSURED FISHPOND OR FISH CAGE OPERATOR
WHO HAS NOT FILED ANY CLAIM DURING THE IMMEDIATELY PRECEDING
THREE (3) HARVEST SEASONS, SHALL BE ENTITLED TO A NO-CLAIM
BENEFIT OF AT LEAST TEN PERCENT (10%) OF HIS PREMIUM SHARE PAID
FOR SAID CROP SEASONS TO BE DEPOSITED IN A TRUST FUND AND TO BE
MANAGED BY THE CORPORATION. SUCH TRUST FUND MAY BE USED TO
FINANCE PREMIUM REBATE OR PREMIUM CREDIT APPLICABLE TO THE
IMMEDIATELY FOLLOWING CROP SEASONS AS DETERMINED BY THE
BOARD OF DIRECTORS.”

SEC. 7. Section 14 of Presidential Decree No. 1467, as amended, is hereby amended by
deleting the entire provision, and in lieu thereof, insert the following:

“SEC. 14. INTER-AGENCY LINKAGES. - TO SUPPORT AND PROMOTE THE
OPERATIONS OF THE CORPORATION, ALL GOVERNMENT DEPARTMENTS,
BUREAUS, OFFICES, AGENCIES AND INSTRUMENTALITIES, NATIONAL OR
LOCAL, ALL LENDING INSTITUTIONS, GOVERNMENT OR PRIVATE, NOW
OR HEREAFTER ENGAGED IN THE SUPERVISED CREDIT PROGRAM TO
FARMERS AND FISHERFOLK, AND SUCH OTHER PUBLIC OR PRIVATE
ENTITIES AS MAY BE CALLED UPON BY THE CORPORATION, SHALL ACT
AS COOPERATING AGENCIES TO THE CORPORATION, AND FOR THIS
PURPOSE, ARE HEREBY DIRECTED TO DESIGN THEIR POLICIES,
PROGRAMS, RULES AND REGULATIONS SO AS TO ATTUNE AND
SYNCHRONIZE THEM WITH THE OBJECTIVES OF THE CORPORATION.”

SEC. 8. Section 17-A of Presidential Decree No. 1467, as amended, is hereby amended
by deleting the entire provision, and in lieu thereof, insert the following:

“SEC. 17-A. PENAL PROVISIONS. - THE CLAIMANT OR ANY PERSON WHO
THROUGH MALFEASANCE, MISFEASANCE OR NONFEASANCE ALLOWS A
SPURIOUS CLAIM TO BE PAID, INCLUDING THE CLAIMANT HIMSELF, SHALL
UPON FINAL CONVICTION, BE PUNISHED BY IMPRISONMENT OF NOT LESS
THAN THREE (3) YEARS BUT NOT MORE THAN EIGHT (8) YEARS OR A FINE
OF NOT LESS THAN ONE HUNDRED THOUSAND PESOS (P100,000) BUT NOT
MORE THAN SIX HUNDRED THOUSAND PESOS (P600,000), OR BOTH, AT
THE DISCRETION OF THE COURT. THE PCIC PERSONNEL WHO ALLOWED
THE COMMISSION OF THE OFFENSE SHALL, IN ADDITION, BE DISMISSED
FROM OFFICE, AND FORFEIT ALL PRIVILEGES AND BENEFITS WHICH MAY
ACCRUE TO SUCH PERSONNEL.”

SEC. 9. Separation Clause - If any provision or part hereof is held unconstitutional
or invalid, the remainder of the law, or the provisions not otherwise affected shall

remain valid and subsisting.

6


CMY FHRwWN

SEC. 10. Repealing Clause - Any provision of Presidential Decree No. 1467, as
amended, and all other laws inconsistent herewith are hereby repealed or modified
accordingly.

SEC. 11. Effectivity Clause - This Act shall take effect fifteen (15) days after its
complete publication in a newspaper of general circulation.

Approved,