Implementing Rules and Regulations (IRR) of the ARB-Agricultural Insurance Program (ARB-AIP)

January 15, 2013

JOINT DAR-DA-PCIC MEMORANDUM CIRCULAR NO. 01-13

 

I. Background:

Enhancing credit access for ARBs is a key support services intervention of the Department of Agrarian Reform. In addition to facilitating agricultural production and agri-enterprise credit as well as microfinance for ARBs, DAR proposed a budget of P1.0 billion in the 2013 General Appropriations Act (GAA)under the budget of DA-Philippine Crop Insurance Corporation (DA-PCIC), which shall be exclusively used for premium subsidy for agricultural insurance of agrarian reform beneficiaries (ARBs) to be endorsed by DAR. The program shall be implemented for a period of one year, unless additional funding for succeeding years shall be provided. The ARB-AIP will be jointly implemented by DAR and DA-PCIC. The premium subsidy will effectively lessen the cost of borrowing by ARBs, by shifting the cost of crop insurance from the borrower to the government. It will likewise lessen the credit constraints of ARBs as the insurance coverage can act as a guarantee or collateral to the production loans of ARBs.

The program will likewise address the vulnerability of ARBs from extreme weather events brought about by climate change. More and more, the Filipino farmers are being affected by the consequences of climate change. Crop insurance will protect them against losses due to pest and disease infestations, natural calamities, and extreme weather events.

Under the joint program, the DAR shall identify the ARBs to be provided with the premium subsidy. The DA-PCIC shall provide the necessary agricultural insurance cover for the ARBs, utilizing the P1.0 billion subsidy fund.

II. Acronyms and Definition of Terms

Unless otherwise specified, the following acronyms and definition of terms and phrases shall be used in these rules and regulations:

1. Agricultural insurance — protection extended to farmers against losses in crops and livestock due to natural calamities as well as plant pests and diseases.

2. ARBs — Agrarian Reform Beneficiaries. Farmers and farm workers who were granted lands under Presidential Decree No. 27, R.A. 6657, as amended, settlement and other land tenure improvement programs of DAR including those farmers under leasehold operations, provided that they are actually cultivating or managing the land awarded to them or the land under leasehold.

3. ARB-AIP — ARB-Agricultural Insurance Program.

4. ARB Household Member — Agrarian Reform Beneficiary Household member. May refer to the: (a) spouse of an ARB, (b) son or daughter of an ARB fifteen years old and above, or (c) father or mother of an ARB, who is actually cultivating or managing the land awarded to the original ARB

n organization/association whose majority (50% + 1) of members are ARBs or ARB household members.

6. APCP — Agrarian Production Credit Program.

7. ARCCESS — Agrarian Reform Community Connectivity and Economic Support Services.

8. Assured Farmer — A farmer whose crop is covered by crop insurance.

9. CAP-PBD — Credit Assistance Program for Program Beneficiaries Development.

10. CIC — Certificate of Insurance Cover. A document issued by DA-PCIC or accredited underwriter to a farmer or group of farmers availing of crop insurance which serves as an evidence of insurance coverage.

11. DA — Department of Agriculture.

12. DAR — Department of Agrarian Reform.

13. DARMO — Department of Agrarian Reform Municipal Office.

14. DARPO — Department of Agrarian Reform Provincial Office.

15. DARRO — Department of Agrarian Reform Regional Office.

16. FO — Farmers Organization. Duly constituted organization/association composed primarily of farmers.

17. GAA — General Appropriations Act.

18. Indemnity — The value of settlement or that portion of amount of cover at the precise time at which loss or damage occurred. This may be equal to or less than the cost of production inputs expended at time of loss.

19. LTI-PBD — Land Tenure Improvement-Program Beneficiaries Development. The two main programs of DAR under the Comprehensive Agrarian Reform Program.

20. Loss — Any damage to insured crop, livestock or agricultural asset.

21. MARO — Municipal Agrarian Reform Officer.

22. Multi-risks Cover — This is the type of crop insurance which covers crop losses due to natural calamities as well as plant pests and diseases.

23. NL — Notice of Loss.

24. PCIC — Philippine Crop Insurance Corporation.

25. PMC — Program Management Committee.

26. PS — Program Secretariat.

27. RCT — Regional Coordinating Team.

28. Self-Financed Farmer — Any farmer who does not obtain agricultural loan from any lending institution, NGOs or government entities.

29. TWG — Technical Working Group.

30. Underwriting — The process by which insurer decides which risk exposure to insure and how to insure them.

31. Underwriter/Underwriting Agent — Any lending institution, person, organization, association, or entity authorized in writing by DA-PCIC to receive and process application for crop insurance, collect and remit premiums, and issue corresponding Certificate of Insurance Cover (CIC).

III. General Policies

The ARB-AIP shall be guided by the following general policies:

1. The ARB-AIP is a complementary program to DAR's various credit access improvement and agricultural production enhancement programs. To ensure maximum returns from the provision of premium subsidy, it should be part of a package of support services to ARBs. This would likewise serve as leverage for ARBs to close the credit gaps and improve productivity.

2. The ARB-AIP shall cover ARBs who are beneficiaries or participants of key programs such as Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS), Agrarian Production Credit Program (APCP), Credit Assistance Program for Program Beneficiaries Development (CAP-PBD), and Microfinance Capacity Development in Agrarian Reform Areas. It shall likewise cover ARBs who are members of ARBOs that are still unable to access credit from formal financing institutions. Other ARBs and marginalized farmers' groups may be covered under the ARB-AIP, subject to the approval of the Program Management Committee (PMC).

3. The ARB-AIP shall cover rice and corn, high-value crops, livestock production, and term insurance-Accident and Dismemberment Security Scheme (ADSS). It shall provide multi-risk coverage for crops and livestock.

4. The ARB-AIP shall adopt a graduated scheme for premium subsidy provision. Program beneficiaries shall share in the premium costs by providing counterpart to the subsidy fund. For the initial year of program implementation, the following sharing scheme shall be implemented:

a. For rice and corn crop insurance programs: premium subsidy — ninety percent (90%) of the total premium cost, farmer-beneficiary — ten percent (10%) of the total premium cost.

b. For high-value commercial crop insurance program: premium subsidy — ninety percent (90%) of the total premium cost, farmer-beneficiary — ten percent (10%) of the total premium cost.

c. For livestock insurance program: premium subsidy — ninety percent (90%) of the total premium cost, farmer-beneficiary — ten percent (10%) of the total premium cost.

d. For ADSS: premium subsidy: — one hundred (100%) of the total premium cost.

IV. Program Objectives

The objective of the program is to provide ARBs and ARB household members with premium subsidy for agricultural insurance to:

1. Protect them against losses due to pest and disease infestations, natural calamities, and extreme weather events brought about by climate change;

2. Improve agricultural productivity of ARBs and ARB household members;

3. Improve access to credit.

V. Roles and Responsibilities of DAR and DA-PCIC

A. Department of Agrarian Reform (DAR)

1. Identify ARBs and ARB household members who are eligible to participate in the ARB-AIP and endorse them to DA-PCIC or accredited underwriters for coverage under DA-PCIC's insurance programs;

2. Assist ARBs and their respective ARBOs in the preparation of documentary requirements for application for agricultural insurance cover for submission to DA-PCIC regional offices or accredited underwriters;

3. Provide technical assistance and other support services to facilitate credit access and enhance agricultural production of ARBs;

4. Assist ARBs in the preparation of requirements for indemnity claims and ensure the submission thereof and other pertinent reports to DA-PCIC through its Regional Offices;

5. Provide funds for administrative and operational expenses related to the successful implementation of the ARB-AIP;

6. Assist DA-PCIC in the conduct of claims adjustment verification on notices of loss and claims filed by ARBs;

7. Attend DA-PCIC Board meetings, particularly when ARB-AIP related concerns are part of the agenda;

8. Conduct periodic monitoring of program implementation.

B. DA-Philippine Crop Insurance Corporation (DA-PCIC)

1. Actively participate in program briefings/orientations to be organized/conducted by the DAR for program stakeholders;

2. Provide agricultural insurance coverage to qualified ARBs and ARB household members, subject to the availability of funds;

3. Use the program fund solely for premium payment of agricultural insurance coverage of the identified eligible farmers endorsed by DAR;

4. Provide funds for equipment, administrative and operational expenses related to the successful implementation of the ARB-AIP;

5. Issue certificate of insurance cover or insurance policy to ARBs and ARB household members upon receipt and approval of the application for agricultural insurance;

6. Provide proper and timely adjustment and settlement of claims of farmers under the ARB-AIP;

7. Submit regular progress report on the utilization of the program fund;

8. Invite duly designated DAR representative to attend DA-PCIC Board meetings particularly when ARB-AIP related concerns are in the agenda;

9. Conduct periodic monitoring and evaluation of program implementation.  

VI. Basic Eligibility Requirements:

A. Farmers:

1. ARBs and ARB household members actually cultivating or managing their respective farms, duly certified by the DAR;

2. Must be a member of an ARBO or FO.

B. Coverage:

1. Crops:

a. Rice

b. Corn

c. Vegetables

d. Coconut

e. Coffee

f. Cacao

g. Sugarcane

h. Mango

i. Banana

j. Pineapple

k. Oil palm

l. Abaca

m. Tobacco

n. Cassava

o. Rubber

p. Other crops

2. Livestock:

a. Cattle

b. Carabao

c. Goat

d. Swine (breeder)

e. Poultry

Farm Area/Project Area:

1. Farm area per farmer shall not exceed a total of three hectares;

2. For multiple cropping, a maximum of three crop insurance coverage per annum per farmer shall be allowed;

3. For collective or group farming, the average area per farmer shall not exceed the limit of three hectares;

4. For livestock, maximum of three animals per raiser for large ruminants and 10 animals for small ruminants and swine (breeder).

A. ARB Identification

1. The DAR Provincial Offices (DARPO) shall list the ARBOs and FOs that are included in the priority beneficiaries under the program. The initial priority of the ARB-AIP are the ARBs and ARB Household members in ARBOs or FOs covered by the following:

a. ARCCESS

b. APCP

c. CAP-PBD

d. Agri-credit recipients under DAR's Microfinance Enhancement program

e. New ARBs covered by CARPER under DAR's LTI-PBD integration strategy

f. Other ARB groups or marginalized farmers, subject to the approval by the PMC

2. The MARO shall identify the eligible members of the short-listed ARBOs and FOs, based on the basic eligibility criteria for farmers and DA-PCIC guidelines. The DARPO shall review and validate the list of ARBs and ARB household members.

3. The DARPO, with the assistance of the MARO shall provide the respective ARBOs and FOs the list of qualified farmers that are eligible for premium subsidy. It shall likewise inform the respective ARBOs and FOs the various options for availment of the said premium subsidy and the accredited underwriting agents of DA-PCIC within the province or region.

4. DARPO, in collaboration with the DA-PCIC Regional Office may conduct orientations for large ARBOs/FOs or groups of ARBOs/FOs on the ARB-AIP guidelines and the policies and procedures for underwriting and claims settlement.

5. The DAR Regional Offices (DARRO) shall consolidate the list of eligible ARBOs/FOs and indicative number of eligible ARBs and ARB household members and endorse the list to the DA-PCIC Regional Office for reference.

B. Underwriting

For Rice and Corn

1. The eligible ARBs and ARB household members through their respective ARBOs/FOs, based on the list submitted by the DARRO, and with the assistance of DA-PCIC shall accomplish the following basic application requirements:

a. Application for Crop Insurance (ACI) in prescribed form

b. Location and Sketch Plan (LSP)

c. Standard Farm Plan and Budget (SFPB)

2. All applications for agricultural insurance shall be summarized per ARBO/FO in the List of Beneficiaries (LOB) in alphabetical order, family name first, using the DA-PCIC prescribed form. Note that for contiguous areas, a single LSP covering several farms may be prepared.

3. The ARBO/FO shall forward the LOB to the MARO and request a DAR certification that the said farmers are ARBs or ARB household members.

4. There are two (2) tracks for submission of the application forms (LOB, ACI, LSP, SFPB and MARO Certification) and the processing of the agricultural insurance coverage:

a. Track 1: The eligible ARBO/FO is a borrower from an accredited underwriter of DA-PCIC

b. Track 2: The eligible ARBO/FO is a borrower from a financing institution that is not an accredited underwriter of DA-PCIC or the eligible ARBO/FO is not a borrower from any financing institution (self-financed farmers)

The following are the procedures for each track:

Track 1

1. ARBO/FO shall submit the LOB along with the application documents and MARO certification to the accredited financing institution. This will usually be part of the loan application submitted by the ARBO/FO.

2. The accredited financing institution shall review the LOB and the corresponding support documents and determine the coverage, premium amounts, and farmer's share of the premium based on the provisions of the ARB-AIP and the DA-PCIC regional guidelines for rice and corn.

3. The accredited financing institution shall collect the farmer's share of the premium and shall issue the corresponding Certificate of Insurance Cover (CIC) to the ARBO/FO.

4. The accredited financing institution shall forward to DA-PCIC Regional Office the CIC along with the LOB and corresponding amount of coverage and premium costs, and remit the farmer's share of the premium, net of ten percent (10%) service fee.

5. The effectivity of the insurance coverage shall be the date of issuance of the CIC or the actual date of planting, whichever is later.

Track 2

1. The ARBO/FO shall submit the LOB along with the application documents to an accredited ARB-AIP underwriter of DA-PCIC. The ARBO/FO also has the option to submit its application documents directly to the DA-PCIC Regional Office. 1

2. In case of submission to an accredited underwriter, the said underwriter shall review the LOB and the corresponding support documents and determine the coverage, premium amounts, and farmer's share of the premium based on the provisions of the ARB-AIP and the DA-PCIC regional guidelines for rice and corn.

3. The accredited underwriter shall collect the farmer's share of the premium and shall issue the corresponding CIC to the ARBO/FO.

4. The accredited underwriter shall forward to DA-PCIC Regional Office the CIC along with the LOB and corresponding amount of coverage and premium costs, and remit the farmer's share of the premium, net of ten percent (10%) service fee.

5. In case of submission directly to DA-PCIC Regional office, said office shall determine the coverage, premium rates and farmer's share of the premium. It shall collect the farmer's share and issue the corresponding CIC to the ARBO/FO.

6. If needed, the ARBO/FO may prepare a Deed of Assignment of their agricultural insurance coverage in favor of their creditor, and submit the same to DA-PCIC Regional office for approval.

7. The effectivity or the insurance coverage shall be the date of issuance of the CIC or the actual date of planting, whichever is later.

The DA-PCIC shall take steps to accredit the financing institution of the ARBO/FO so that the said financing institution can underwrite the agricultural insurance of the ARBO/FO similar to Track 1. This can be done prior to the application of the ARBO/FO.

For High-Value Commercial Crops and Livestock:

1. The eligible ARBs and ARB household members through their respective ARBOs/FOs, based on the list submitted by the DARRO, and with the assistance DA-PCIC shall accomplish the following basic application requirements:

a. Application for High Value Crop Insurance or Livestock Mortality Insurance in prescribed form

b. Location and Sketch Plan or Parcellary Map

c. Farm Plan and Budget

d. Veterinary Health Certificate for Livestock (if required)

2. All applications for agricultural insurance shall be summarized per ARBO/FO, by crop/livestock, in the List of Beneficiaries (LOB) in alphabetical order, family name first, using the DA-PCIC prescribed form.

3. The ARBO/FO shall submit the LOB along with the application documents directly to DA-PCIC Regional Office.

4. The DA-PCIC Regional Office shall review the documents and may conduct pre-production inspection to determine the amount of coverage, premium costs, and farmer's share of the premium based on the provisions of ARB-AIP and DA-PCIC guidelines for high-value commercial crops and livestock.

5. The DA-PCIC Regional Office shall collect the farmer's share of the premium and issue the corresponding insurance policies to the ARBO/FO.

6. The effectivity of the insurance coverage shall be the date of issuance of the insurance policy or the actual date of planting, if applicable, whichever is later.

C. Deviation from Approved Farm Plan and Budget

Any of the following deviations from the data contained in the application for insurance should be reported by the insured farmer to the respective ARBO/FO. The ARBO/FO shall prepare a Deviation Report in prescribed form to be submitted to the DA-PCIC Regional Office within ten (10) days after actual planting:

1. Change in seed variety planted

2. Change in date of sowing/planting/direct seeding

3. Change of location of farm

4. Change in area or size of farm planted

5. Change in method of planting

D. Amount of Cover, Premium Rates, Type of Cover and Risks Covered

The amount of cover, premium rates, type of cover and risks covered per crop/livestock category, including the premium rates for ADSS are presented in Annex A of this guideline.

E. Claims Settlement

1. In case of occurrence of loss arising from a risk insured against, the insured ARB or ARB household member shall file claim for indemnity payments under existing DA-PCIC implementing rules and regulations.

2. The assured farmers or any immediate member of his family shall file Notice of Loss in a pro forma letter or telegram or fax as prescribed by DA-PCIC provided that if a written notice is given in some other form, it shall at least contain the name of assured farmer, CIC/Policy number crop planted and damaged, location of lot and information on the time of occurrence of loss such as stage of crop cultivation, its nature, cause and extent of damage.

3. The Notice of Loss (NL) shall be filed within the corresponding number of days from the time of occurrence of loss, as follows:

a. Rice and Corn — within 10 calendar days

b. High-Value Crops — within 72 hours to 10 calendar days

c. Livestock — within 10 calendar days

d. Term Insurance — within 10 calendar days

4. The Claim for indemnity shall be filed in the following manner:

a. The assured farmer shall file within forty-five (45) calendar days from occurrence of the loss a formal claim for indemnity with the concerned DA-PCIC Regional Office;  

b. The claim must be accomplished in the prescribed form.

5. No claim shall be entertained without proof of filing of Notice of Loss as required in Item 2 above. However, if claim for indemnity is filed by the assured farmer with the DA-PCIC Regional Office within ten (10) calendar days from occurrence of loss, the same shall serve as notice of loss.

6. The adjustment or verification of claims shall be conducted by a Team of Adjusters composed of DA-PCIC Adjuster and the DARPO/DARMO representative. A duly designated ARBO/FO representative may join the Team of Adjusters. In case no representative from the DARPO/DARMO shall be available, two (2) DA-PCIC adjusters will conduct the adjustment.

7. In case of widespread occurrence of calamity, the DA-PCIC may adopt the collective claims adjustment scheme and the Regional General Assessment Team shall be activated.

8. Limits of Liability:

a. Any loss on account of risk insured against which prevent the profitable continuation of the crop or where the estimated yield is 90% or more shall be considered a total loss;

b. Any loss on account of risk insured against which does not prevent the profitable continuation of the crops shall be a partial loss, provided that for purposes of insurance, if the estimated yield loss is ten percent (10%) or less, the same shall be considered as no loss.

^* institution, ARBO/FO or individual assured farmers depending on the initial agreement and any assignment of claims.

10. The amount of indemnity shall be determined based on the prevailing loss matrices and indemnity schedules and the following factors:

a. Extent of yield loss/crop damage

b. Stage of crop at the time of damage

c. Cost of production inputs at the time of loss/damage

d. Amount of insurance cover

11. Claims shall be settled within the prescribed period of 60 days from receipt of complete claims documents.

12. Request for reconsideration regarding shall be filed within thirty (30) calendar days upon receipt of claim payment or notice of claim disapproval.

VIII. Other Related Policies

1. For rice, corn and high-value crops, the insured ARBs/ARB household members shall have a no-claim benefit. This is a ten percent (10%) discount on insurance premium after three (3) preceding crop seasons not subject of any claim.

2. Any insured ARB or ARB household member who may suffer death within the term of the agricultural insurance coverage shall be provided with a P10,000.00 death benefit, provided that said ARB or ARB household member is not more than 75 years of age at the inception of insurance.

IX. Program Management

To ensure effective program implementation, the following bodies shall be created:

1. Program Management Committee (PMC). The PMC shall have the following functions:

a. Provide direction and formulate policies for the Program;

b. Monitor the performance of the Program;

c. Act on issues or concerns relative to program implementation;

d. Conduct regular monthly meetings and special meetings, as needed.

The PMC shall be composed of the following:

a.	Chairman	-	Chairman of the Board, DA-PCIC
b.	Co-Chairman	-	Undersecretary for Support Services,
			DAR
c.	Members	-	President, DA-PCIC
			Undersecretary for Operations, DAR
			SVP-RMG, DA-PCIC
			BARBD Director, DAR

2. Technical Working Group (TWG). The TWG shall have the following functions:

a. Provide technical support to the PMC;

b. Ensure that policies, operational systems, procedures and guidelines approved by the PMC are implemented;

c. Install and maintain a monitoring and evaluation system for the program;

d. Facilitate the necessary support to field implementers.

e. Conduct regular monthly meetings and special meetings, as needed.

The TWG shall be composed of the following:

a.	Chairman	-	Chairman of the Board, DA-PCIC
b.	Co-Chairman	-	Undersecretary for Support Services,
			DAR
c.	Members	-	President, DA-PCIC
			Undersecretary for Operations, DAR
			SVP-RMG, DA-PCIC
			BARBD Director, DAR

3. Program Secretariat (PS). The PS shall have the following functions:

a. Provide administrative support to the TWG and PMC;

b. Safekeep reports and other related Program documents;

c. Prepare Minutes of Meetings of TWG and PMC meetings.

The PS shall be composed of the following:

a.	Head	-	Designated representative from DA-PCIC
b.	Members	-	One (1) representative from DA-PCIC
			One (1) representative from DAR

4. Regional Coordinating Team (RCT). The RCT shall be organized in each region. The RCT shall have the following functions:

a. Coordinate the over-all ARB-AIP implementation in the region;

b. Resolve operational and site-specific issues and concerns in the implementation of the ARB-AIP;

c. Monitor program performance in the region;

d. Conduct regular monthly meetings and special meetings, as needed; and

e. Submit observations and recommendations to PMC thru the TWG, as needed.

The RCT shall be composed of the following:

a.	Chairman	-	Regional Manager, DA-PCIC
b.	Co-Chairman	-	Regional Director, DAR
c.	Members	-	COD of Marketing and Sales Div.,
			DA-PCIC
			COD of Claims and Adjustment Div.,
			DA-PCIC
			COD of Finance Division, DA-PCIC
			Chief of Support Services Division, DAR
			Chief of Operations Division, DAR

DA-PCIC and DAR shall organize a Regional Program Secretariat (RPS) composed of an RPS Head from DA-PCIC and at least one (1) representative each from DA-PCIC and DAR regional offices as members.

Expenses for meetings, monitoring, evaluation, and other activities of the PMC, TWG, PS, RCTs and RPS shall be charged against the respective funds of DA-PCIC and DAR, subject to government accounting and auditing rules and regulations.

X. Program Monitoring

A program monitoring system shall be established by DAR and DA-PCIC to track the progress of program implementation as well as generate feedback from the field level to the program management regarding the efficiency and effectiveness of the program's delivery system. The program monitoring system shall include the following:

1. Progress Monitoring and Reporting

a. DA-PCIC shall prepare and submit regular reports to the PMC on the status of insurance coverage, premium payments, program fund balance and indemnity payments.

b. Periodic field validation/visits may be conducted by DAR and DA-PCIC to ascertain the qualitative accomplishments vis-à-vis the quantitative performance.

2. Conduct of Program Management Meetings

Regular and special meetings of the PMC shall be conducted to update the key implementers with the program status as well as resolve issues related to program implementation.

XI. Amendments

This IRR may be amended upon agreement of both parties.

XII. Separability

If any provision in this IRR or application of such provision to any circumstance is held invalid, the remainder of this IRR shall not be affected thereby.

XIII. Effectivity

This Joint Memorandum Circular shall take effect upon signing by both parties and shall remain in full force and effect until December 31, 2013, unless extended or terminated.

Quezon City, January 15, 2013.

(SGD.) VIRGILIO R. DE LOS REYESSecretaryDepartment of Agrarian Reform

(SGD.) JOVY C. BERNABEPresident Philippine Crop Insurance Corporation

ATTACHMENT

AMOUNT OF COVER, PREMIUM RATES AND COVERED RISKS

 

Commodity	Amount of Cover	Premium Rate	Covered Risks
	Per Ha./Tree/Animal	(%)
Crops:
Rice	Inbred Variety	See attached	Multi-Risk Cover — This is a
	Irrigated/Rainfed —	Schedules 1 & 2	comprehensive coverage against
	Php39,000		crop loss caused by natural
	Seed Production —		disasters like typhoon, flood,
	Php50,000,		drought, earthquake, and volcanic
			eruption, as well as pest
	Hybrid Variety		infestation and plant diseases.
	Commercial Production
	(F1) — Php42,000.		Natural Disaster Cover — This is a
	Seed Production		limited coverage against crop loss
	(A x R) — Php65,000		caused by natural disasters.
Corn	Hybrid Variety —	See attached	Multi-Risk Cover — This is a
	Php40,000	Schedules 3 & 4	comprehensive coverage against
	Open-Pollinated Variety		crop loss caused by natural
	— Php28,000		disasters like typhoon, flood,
			drought, earthquake, and volcanic
			eruption, as well as pest infestation
			and plant diseases.
			Natural Disaster Cover — This is a
			limited coverage against crop loss
			caused by natural disasters.
Vegetables	Php54,000 (average)	2.0 to 7.0	Natural Calamities (typhoon, flood,
			drought, earthquake & volcanic
			eruption)
Coconut	Php36,900	2.0 to 7.0	-do-
Coffee	Php50,000	2.0 to 7.0	-do-
Cacao	Php32,250	2.0 to 7.0	-do-
Sugarcane	Php54,500	2.0 to 7.0	Natural Calamities & accidental fire
Mango	Php3,000/tree	2.0 to 7.0	Natural Calamities
Banana	Php100,000	2.0 to 7.0	-do-
Pineapple	Php60,000	2.0 to 7.0	-do-
Oil Palm	Php24,000	2.0 to 7.0	Natural Calamities & accidental fire
Abaca	Php50,700	2.0 to 7.0	Natural Calamities
Tobacco	Php14,000	2.0 to 7.0	-do-
Cassava	Php58,000	2.0 to 7.0	-do-
Livestock:
Cattle &	Non-Commercial Cover:		Non-Commercial Cover:
Carabao	Php7,000-15,000	5.00 to 7.50
			1.	Diseases like Liver fluke,
	Commercial Cover:
	Php10,000-15,000	5.00 to 7.00	2.	Verminous Bronchitis, all other
	15,001-20,000	6.00 to 8.00		parasitic diseases, Leptospirosis,
	20,001-25,000	7.00 to 9.00		Swine Enzootic Pneumonia,
	25,001-30,000	8.00 to 10.00		Colibacillosis, Streptococcosis,
	30,001-50,000	Above 10.00% or		Tetanus, Aflatoxicosis,
		as agreed upon		Cancerous Diseases, Footrot,
				Rabies, Poisoning, Heat Stroke,
Horse	Php>9,000 to 15,000	5.00 to 7.25		Heart Attack and all other
				diseases except those appearing
Goat	Fattener:			in the exclusions in the policy;
	Php1,000	10.00
		12.00	3.	Accidental drowning,
	Breeder:			strangulation, snakebites and
	Php20,000			other events of accidental nature
				except those caused by vehicular
Swine	Fattener:			accidents;
	Php3,000-7,000	0.50 per month
			4.	Fire and/or lightning;
	Breeder:
	Php5,000-7,000	3.0 to 6.0	5.	Dog bites (for goat and sheep
	7,001-10,000	4.0 to 8.0		only); and
			6.	Accidents arising from the
				transport of animals to and from
				the farm and place of treatment.
			Commercial Cover:
			1.	All diseases covered in Non-
				Commercial Cover;
			2.	All accidents covered in Non-
				Commercial Cover except for
				fire and lightning; and
			3.	Accidents arising from the
				transport of animals to and from
				the farm and place of treatment.
Poultry	Per prevailing market	Pullets/Layers-	1.	Catastrophic losses arising from
	price or as agreed upon	3.50 to 4.00		death of birds due to accidents
				and/or diseases.
		Broilers — 1.75
			2.	Typhoon & flood
ADSS	Php 50,000	0.07		Death or dismemberment of the
				insured due to accident

 

Notes:

1. The premium rate for rice and corn crops is variable per region, per season and per risk classification.

2. The amount of insurance for high-value commercial crops covers the cost of farm investments/cost of production inputs as agreed upon by PCIC and the assured, including a portion of the value of the expected yield (at the option of the farmer) but not to exceed 120% of the cost of production inputs.

3. The insurance premium for high-value commercial crops shall be market-rated. The premium rate shall be on a per project basis and shall depend on the result of the pre-coverage evaluation of the type and number of risks sought for coverage, as well as other factors such as location-specific agro-climatic conditions, type of soil, terrain, farm management practices and production and loss records.

Footnotes

1. The second option will be applicable for ARBOs/FOs that are located near the DA-PCIC Regional offices; otherwise it shall be more convenient to apply with the accredited underwriters within the province. 

n Note from the Publisher: Copied verbatim from the official copy. With missing portion.