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House of Representatives
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3226

Introduced by Honorable Anthony M. Bravo and Honorable
Cresente C. Paez

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 80% to a hundred percent of the actual value of the projected harvest of our
farmers, It is only by properly compensating the farmers 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.

c

HON. ANTHONY M. BRAVO HON. caggenre S. PAEZ


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House of Representatives
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3226

Introduced by Honorable Anthony M. Bravo and Honorable
Cresente C. Paez

AN ACT
AMENDING PRESIDENTIAL DECREE NO. 1467 AS AMENDED BY REPUBLIC
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 Representatives of the Philippines in Congress
assembled:

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 BUT SHALL IN NO CASE BE LESS THAN FIFTY PERCENT (50%)
OF THE COST OF THE PREMIUM FOR RICE AND CORN AND TWENTY
FIVE PERCENT (25%) FOR OTHER CROPS: 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 limited to, typhoons, droughts, outbreaks or pests and


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

2 upon the accumulation of surplus funds, be increased to such amount as may be
3 determined by the Board, taking into consideration that the Corporation has been
4 established not only for profit but mainly to help the insured in their direst hours
5 of need

6 THE AMOUNT OF INDEMNITY SHALL BE AT LEAST EIGHTY
7 PERCENT (80%) BUT NOT MORE THAN ONE HUNDRED PERCENT
8 (100%) OF THE VALUE OF THE POTENTIAL HARVEST OF THE CROPS
9 SUBJECT TO THE APPROVAL OF THE PCIC BOARD. THE BOARD
10 SHALL TAKE INTO ACCOUNT THE ACTUAL COST OF PRODUCTION
u INPUTS ALREADY APPLIED AT THE TIME OF LOSS PER FARM PLAN
12 AND BUDGET, SUBJECT TO LIMITS STIPULATED IN THE POLICY
13 CONTRACT, PRORATED COST OF THE HARVESTED CROPS, THE
14 SALVAGE VALUE, IF ANY, AND THE PERCENTAGE OF YIELD LOST."

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

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

17 _ with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

18 SECTION 3. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

9 publication in at least two (2) newspapers of general circulation.

Approved,