Revised Charter of the Philippine Crop Insurance Corporation

PCIC is established as a body corporate under the Department of Agriculture for budget purposes.
Insures qualified farmers against losses from natural calamities, plant diseases, and pest infestations.
Initially covers palay crops, expanding later to other crops and agricultural assets like machinery and infrastructure.
Insurance covers cost of production inputs, labor (including family and hired workers), and part of expected yield.
Excludes losses arising from negligence, malfeasance, fraud, or failure to follow farm practices.

PCIC authorized to generate internal funds through bonds, expanding insurance lines and agricultural coverage.
Empowered to perform acts necessary to achieve its objectives.

Premium rates and shares among farmers, lending institutions, Government, and others determined by PCIC Board.
Government subsidies limited to subsistence farmers cultivating up to seven hectares.
Premium shares for subsistence farmers must be affordable.
Government covers premium for unforeseen and unavoidable risks only.
Surplus funds may increase subsidies and insurance benefits.

Unpaid government premium subsidies from 1981 to Act’s approval scheduled to be paid within 10 years.
Calamity funds to include a percentage for crop insurance, administered by PCIC.
10% of PCSO lotto net earnings earmarked for crop insurance program until government subscription fully paid.

Authorized capital stock set at Php 2 billion: 15 million common shares and 5 million preferred shares.
Additional Php 1 billion common capital stock to be fully subscribed by Government, with Congress providing at least 50% annually.
Additional capital stock not to be used to increase PCIC manpower.

A Php 500 million State reserve fund created for catastrophic losses exceeding pure risk premiums for small farmers.
Fund managed by designated government financial institution.
PCIC authorized to obtain reinsurance to spread risk.

Board composed of 7 members: President of Land Bank of the Philippines, PCIC President, Executive Director of Agricultural Credit Policy Council, a private insurance representative, and three representatives from subsistence farmers (from Luzon, Visayas, Mindanao).
Private sector and farmer reps nominated by respective bodies and appointed by the President.
Board Chairman appointed by President from among members; PCIC President is ex officio vice chairman.

Members to receive per diem of not less than Php 1,500 per meeting, capped at Php 7,500 monthly.
Reasonable travel and subsistence expenses for farmer representatives are reimbursable.

PCIC authorized to borrow funds and issue bonds up to five times the value of authorized capital stock to finance vital programs.

Claims settled by regional managers or delegated officers; controversial claims may be elevated to PCIC President.
Aggrieved claimants may request reconsideration within 30 days and further appeal to PCIC Board.
Claims not acted upon within 60 days from complete submission are deemed approved.

Insured farmers with no claim for three consecutive crop seasons receive a no-claim benefit of at least 10% of their premium shares paid.
Funds for such benefit deposited in a trust managed by PCIC for possible premium rebate or credit.

Profits determined on a calendar year basis; distribution manner to be determined by law.

Persons causing payment of spurious claims, including claimants and PCIC personnel, face imprisonment (1-6 years), fines (Php 50,000 to Php 500,000), or both.
PCIC personnel found guilty are dismissed and forfeit benefits.

PCIC Board required to review Corporation’s activities and submit a report with recommendations to Congress every two years.

Invalidity of any provision does not affect the validity of the remainder of the law.

Provisions inconsistent with this Act, including parts of Presidential Decree No. 1467 as amended, are repealed or modified.

The Act takes effect 15 days after publication in two newspapers of general circulation.