Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL covermien DILO-NAPOLEOM Center, EDSA corner Quezon Avenue, QUEZON CITY Telephone Number 9261.48 » 925.68.88 » 925.09.92 eee OFFICE OF THE SECRETARY MEMORANDUM CIRCULAR pagal eee No. 2016-63 To : ALL PROVINCIAL GOVERNORS, CITY MAYORS, MUNICIPAL MAYORS, DILG REGIONAL DIRECTORS, THE REGIONAL GOVERNOR OF THE ARMM, AND OTHERS CONCERNED SUBJECT: ALL LOCAL GOVERNMENT UNITS TO INSURE WITH GSIS IN COMPLIANCE WITH THE PROPERTY LAW This has reference el Republic Act No. 656, otherwise known as the Property Insurance Law, which, under Section 5, reads, quote: “Sec. 5. Every government, except a nmunicipal government below first class, is hereby required to insure its properties, with the Fund (Property Insurance Fund) against any insurable risk herein provided and pay the premiums thereon, which, however, shall not exceed the premiums charged by (private insurance companies: Provided, however, That the System (Government re ‘reserves the right to disapprove the whole ora portion ance applied for: Provided, furcher, That such property or of the amount of ins part thereofas may with any private ‘may upon application insure its properties in the Fund under such rales and regulations as the System may prescribe.” (Underscoring supplied) Recently, the GSIS provided this Department with an updated list of uninsured local governments as of March 2016, which shows that three (3) Provinces, nine (9) first class municipalities and 53 other municipalities have not yet insured their properties, copy of which is hereto attached, for easy reference. Relative thereto, all Local Chief Executives concerned are hereby reminded to: 1. Comply with the Property Insurance Law; 2. Include in their 2017 budget the premiums for such insurance coverage with the Gsis; 3. Settle premium ievasi ina timely manner; and 4, Contact the GSIS Insurance Group at Telephone Number (02) 976-4900 local 3431, for insurance requirements and related queries.Further, local governments with budgetary constraints may also consider using the Local Disaster Risk Reduction and Management Fund. Section 21 of R.A No. 10121, also known as the Philippine Disaster Risk Reduction and Management Act, reads, quote: “The present Local Calamity Fund shall henceforth be known as the Local Disaster Risk Reduction and Management Fund (LORRME). Not less than five percent (5%) of the estimated revenue from regular sources shall be set aside as the LDRRMF | ome disaster risk management activities such as, but not limited to, pre-disaster preparedness programs including training, purchasing life-saving rescue equipment, supplies and medicines, for post-disaster activities, and for the payment of premium on calamity insurance.” (Emphasis supplied) All DILG Regional Directors and the Regional Governor of the Autonomous Region in ‘Muslim Mindanao are hereby directed to immediately disseminate this Memorandum Circular to all local authorities within their regional jurisdictions, and to ensure an active local government compliance on this Issuance. MEL . SARMIENTO Secreary/~FIRST CLASS MUNICIPALITIES UNINSURED. ‘AS of MAR [Municipality Province ae DATU BLAR T. SINSUAT MAGUINDANAO Uninsured HOLO (Capital) isu Uninsured PAGALUNGAN MAGUINDANAO Uninsured) PANTABANGAN, NUEVA ECUA Uninsured) PIGKAWAYAN, [COTABATO [NORTH COTABATO] | Uninsured. 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