Question & AnswerQ&A (Republic Act No. 8175)
The official short title is the "Revised Charter of the Philippine Crop Insurance Corporation Act of 1995."
The policy is to develop and support an adequate agricultural insurance program to manage the risks in agriculture and stabilize financial fluctuations suffered by agricultural producers, thereby encouraging lending institutions to extend credit to the agricultural sector.
Subsistence farmers are those who depend primarily on farming for their subsistence and till their own land with the help of household members.
The PCIC insures qualified farmers against losses from natural calamities, plant diseases, and pest infestations, initially covering palay crops and later other crops and non-crop agricultural assets as determined by the Board.
It covers the cost of production inputs, value of the farmer's own labor and household labor, hired labor, and a portion of the expected yield as decided by the Board.
No, losses arising from avoidable risks due to negligence, malfeasance, fraud, or failure to follow proven farm practices by the insured or household members are excluded.
The Board of Directors of PCIC determines the premium rate and sharing among farmers, lending institutions, government, and other parties, subject to Presidential approval especially concerning subsidies to subsistence farmers.
The government shares in premium costs only for insurance against unforeseen and unavoidable risks, limits subsidies to subsistence farmers cultivating no more than seven hectares, ensures premiums are reasonably affordable, and subsidies apply only to typhoons, droughts, pest and disease outbreaks.
Persons who allow spurious claims through malfeasance, misfeasance or nonfeasance, including claimants, face imprisonment of one to six years, fines from P50,000 to P500,000, or both. PCIC personnel involved shall be dismissed and forfeit benefits.
It is composed of seven members including the President of the Land Bank of the Philippines, President of PCIC, Executive Director of Agricultural Credit Policy Council, a private insurance industry representative, and three representatives from subsistence farmers sectors representing Luzon, Visayas, and Mindanao.
Insured farmers who did not file any claim during the preceding three crop seasons are entitled to at least 10% of their premium share paid for those seasons, deposited in a trust fund managed by PCIC for premium rebate or credit.
Claims are settled by the regional PCIC manager or delegated officer, can be escalated to the President of PCIC upon referral or request for reconsideration, and further appealable to the Board of Directors; claims not acted upon within 60 days are deemed approved.
The authorized capital stock is two billion pesos, divided into 15 million common shares and 5 million preferred shares, all subscribed by the government.
PCIC may generate internal funds by issuing bonds, expanding to other insurance lines, extending coverage, and exercising powers incidental or conducive to its objectives.
A State reserve fund of five hundred million pesos is established exclusively for catastrophic losses exceeding risk premiums for small farmers, administered by a government financial institution designated by the PCIC Board.
Ten percent (10%) of the net earnings from PCSO's lotto operations is earmarked for the Crop Insurance Program and remitted semi-annually to PCIC until government subscription amounts are fully paid.
The additional common capital stock shall not be used to increase the existing manpower of the Corporation.
The Act takes effect 15 days after its complete publication in at least two newspapers of general circulation.