Administration and Powers of the Fund
- Administration is vested in the Government Service Insurance System (GSIS).
- GSIS may reinsure with private companies under mutually agreed terms.
- GSIS has power to prescribe rules, appoint personnel certified by the Civil Service, set duties and fix remuneration.
- Exemption from Section 15 of Commonwealth Act No. 186 for Fund personnel.
Key Definitions under the Act
- "System": Government Service Insurance System established by Commonwealth Act No. 186.
- "Fund": Property Insurance Fund created by this Act.
- "Property": Includes vessels, vehicles, machinery, permanent buildings, stored properties, rented buildings, and properties in transit.
- "Government": National, provincial, city, municipal governments, agencies, commissions, boards, and government-owned/controlled enterprises.
- "Disposable Surplus": Amount left after setting aside insurance and other reserves and administrative expenses.
Insurance Requirement and Coverage
- All governments except municipal below first class must insure properties with the Fund.
- Premiums must not exceed those charged by private insurers.
- GSIS reserves right to disapprove whole or part of the insurance amount.
- Uninsurable properties can be insured privately.
- Municipal governments below first class may apply for insurance under rules set by GSIS.
Premium Payment and Penalties
- Premiums must be paid in advance by the concerned government according to GSIS rules.
- Officials responsible for collection/remittance failing duties are liable for premium payment and a fine of 2% per month from due date until payment.
Statistical Data and Reporting
- GSIS to collect and analyze statistical data to determine risks and premium rates.
- Fund accounts kept separate from other GSIS funds.
- Annual report on Fund operations submitted to the President every October.
Auditing and Legal Advisory
- Auditor General serves as ex-officio auditor; Government Corporate Counsel as legal adviser.
- Auditor General submits audited financial statements annually.
- Actuarial valuation of the Fund is conducted.
Disposal and Guarantee of Surplus
- Disposable surplus apportioned among insured governments as approved by GSIS.
- The Philippine Government guarantees fulfillment of Fund obligations as they become due.
Inventory, Premium Assessment, and Fund Release
- GSIS requires property inventory and valuation for premium determination.
- Governments must set aside appropriations for premiums and certify availability.
- Auditor General releases funds to GSIS, which governments must remit immediately.
- Premiums for entities with special funds paid from respective special funds, otherwise from general funds.
Appropriation and Remittance of Premiums
- Governments must include insurance premiums in annual appropriations and remit immediately to GSIS.
Repeal and Liquidation of Previous Fund
- Repeals Chapter 16 of Revised Administrative Code relating to previous Property Insurance Fund.
- Remaining assets and liabilities liquidated and transferred to GSIS.
- Existing insurance coverage continues under old law until insured anew under this Act.
Effective Date
- The Act takes effect on the first day of the third calendar month after approval.