Law Summary
Background and Legal Basis
- PCIC was created under Presidential Decree No. 1467 and amended by RA No. 8175 to provide insurance to farmers against losses from natural disasters, plant diseases, and pest infestations.
- Previously attached to the DA for policy and supervision as per EO No. 74 (2002).
- The DOF is tasked with ensuring efficient management of the government's financial resources and administering fiscal policies.
Rationale for Transfer
- Aligning PCIC’s programs with national development and fiscal plans aims to enhance cost-efficient delivery of insurance protection to farmers.
- PCIC’s operations need centralized and rationalized monitoring to ensure prudent use of government resources and to manage liabilities effectively.
Reorganization of the PCIC Board of Directors
- The PCIC Board is reorganized to enhance governance and oversight.
- The Board composition is defined as follows:
- Chairperson: Secretary of Finance
- Vice-Chairperson: Secretary of Agriculture
- Members include:
- President of PCIC
- President of Land Bank of the Philippines
- President and General Manager of Government Service Insurance System
- Representative from the private insurance industry nominated by the Secretary of Finance
- Representative from the subsistence farmer’s sector nominated by farmer organizations or cooperatives, preferably agrarian reform beneficiaries.
Legal Provisions on Governance
- The reorganization aligns with Section 5 of RA No. 10149 (GOCC Governance Act of 2011), empowering the Governance Commission for GOCCs to recommend reorganization for better efficiency.
Constitutional Authority and Implementation
- The order is issued under the President’s control over executive departments as provided in Section 17, Article VII of the Philippine Constitution.
- The Order takes effect immediately upon issuance.
Separability Clause
- Any invalid or unconstitutional provision will not affect the validity of other provisions in the Order.
Repealing Clause
- All prior orders, rules, and regulations inconsistent with this Order are repealed or modified to conform.
Policy Objective
- Facilitates a modernized agriculture founded on social equity as part of the national agenda for poverty alleviation and development through efficient insurance support to farmers.