Disposition of Insurance Proceeds and Repair of Damage Caused by Calamities

March 13, 1980

LETTER OF INSTRUCTIONS NO. 999

 

WHEREAS, certain government property, including buildings and equipment, are insured with the Government Service Insurance System;

WHEREAS, it is necessary to rationalize policy and procedure on the disposition of insurance proceeds received on fire or other damaged to government property; cd

WHEREAS, a Calamity Fund is provided in the General Appropriations Act to support the immediate rehabilitation of properties damaged by calamity;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby Order and Instruct:

1. Any Office damaged by fire or other insured risk shall take the initiative, with the cooperation of the Bureau of Buildings and Real Property Management, for the processing and collection of insurance claims.

2. The GSIS shall expedite processing and payment of claims. Insurance proceeds shall be deposited with the National Treasury as income of the General Fund.

3. The Minister of the Budget shall release from the Calamity Fund, an amount equivalent to the insurance proceeds, to allow prompt initiation of the rehabilitation/repair/reconstruction work. The funds shall be released to the Ministry of Public Works or the agency concerned, depending on the damage sustained and the work to be done.

4. Any additional cost needed to fully restore damage to buildings shall be estimated by the Minister of Public Works or the agency concerned, as the case may be, and the Minister of the Budget shall release the minimum necessary funds on that basis, chargeable to the Calamity Fund. Damage to chattels shall be evaluated/processed in accordance with existing policy and procedure.

DONE in the City of Manila, this 13th day of March, in the year of Our Lord, Nineteen Hundred and Eighty. acd