The AGRI Party-list is proposing to convert the Philippine Crop Insurance Corporation (PCIC) to the Philippine Agricultural Insurance System (PAIS), which will provide free life and crop insurance to farmers and fisherfolk, as well as optional agricultural equipment insurance.
“Gusto nating ipanukala ang pag-amyenda sa batas na naglikha sa PCIC at i-expand ito upang maging PAIS nang sa gayon ay hindi lamang insurance sa mga pananim ang maibigay sa ating mga magsasaka,” AGRI Party-list first nominee and former judge Frank Lobrigo said.
As defined by IC, agriculture insurance refers to the insurance of the produce of or assets used in cultivation of crops, livestock, rearing, animal husbandry, poultry farming, dairy farming and fisheries.
“Kailangan din ng life insurance at insurance sa mga kagamitan ng ating mga magsasaka at mangingisda lalo na ngayon at padami nang padami at palakas nang palakas ang mga bagyong dumagsa sa ating bansa na nagdadala ng matitinding pagbaha sa mga kanayunan at sakahan,” he added.
To ensure sustainability, Lobrigo said AGRI will propose the creation of a Climate Change Fund, a special fund which will cover the financial requirements of the proposed PAIS.
“To ensure the viability and sustainability of the PAIS, magpo-propose ang AGRI ng pagbuo ng isang Climate Change Fund, na magiging perpetual na special fund na siyang popondo sa mga programang may kinalaman sa mga epekto ng climate change sa agrikultura, mga magsasaka, at mga mangingisda. Kasama na rito ang distribution ng libreng fertilizers at sustainable free irrigation,” he said.
Lobrigo emphasized that AGRI will advocate for legislation that will strengthen agriculture insurance protection, as he noted the 2.6 percent decrease of the Philippines’ value of production in agriculture in the third quarter of 2021.
The former judge said the agriculture sector is “perennially severely hit by adverse weather conditions due to climate change” and stressed the need for “the government to seriously address this perennial challenge to agriculture and achieve sustainable uplift of the quality of life for farmers and fisherfolk.”
The Philippines has a low insurance penetration rate among famers, only 8 to 14 percent for rice and only 2 to 6 percent for corn in 2013 to 2017.
Based on data from the Department of Agriculture, agriculture damage caused by Typhoon Jolina reached P1.36 billion, while the southwest monsoon enhanced by Typhoon Fabian also caused P698.53 million worth of farm losses.
Meanwhile, AGRI also welcomed the Insurance Commission (IC)’s move to allow non-life insurers in the private sector to offer agricultural insurance and explore opportunities in the farm sector.
Under (IC)’s Circular Letter 2021-60, non-life insurers can file proposals on how they can extend insurance services to agricultural stakeholders.
According to the same circular, the Philippines has a low insurance penetration rate among famers, only 8 to 14 percent for rice and only 2 to 6 percent for corn in 2013 to 2017.
As defined by IC, agriculture insurance refers to the insurance of the produce of or assets used in cultivation of crops, livestock, rearing, animal husbandry, poultry farming, dairy farming and fisheries including all value chain activities like production, transportation, storage processing, packaging, preservation, and marketing.
