CROP INSURANCE

LAW
GERLIE V. AGDIPPA
What is Insurance?
■ Insurance is a tool to protect you against the small
probability of a large unexpected loss.
■ There are various types of insurance available,
including health, dental and vision, life, auto, and legal
insurance.
■ Insurance is not a tool to make money but a tool to
help compensate an individual or business for
unexpected losses that might otherwise cause a
financial problem.
What is Crop Insurance?
■ Crop Insurance is a means of protecting the
agriculturist against financial losses due to
uncertainties that may arise from crop
failures/losses that arising from named or all
unforeseen perils beyond their control.
CROP INSURANCE LAW
■ provide insurance protection to farmers
against losses arising from natural
calamities, plant diseases and pest
infestations of their palay and corn crops as
well as other crops.
■ Policy that safeguard farmers from crop loss
Overview of the Philippine Crop
Insurance Corporation (PCIC)
■ The Philippine Crop Insurance Corporation is the country’s sole
crop insurance provider. It is a Government-Owned and
Controlled Corporation (GOCC) administratively under the
Department of Agriculture (DA), mandated to help stabilize the
income of agricultural producers and promote the flow of credit in
the countryside by providing insurance protection particularly to
the subsistence farmers and fishers against loss of their crops
and non crops agricultural assets on account of natural
calamities such as typhoons, floods, droughts, earthquake, and
volcanic eruption, plant pests, and diseases, and or other perils
■ PCIC is a government owned and controlled
corporation (GOCC) created by virtue of
Presidential Decree 1467 (June 11, 1978), later
on amended by PD 1733 (October 21, 1980) and
further amended by Republic Act 8175
(December 29, 1995), as the implementing
agency of the government’s agricultural
insurance program.
 [REPUBLIC ACT NO. 8175]
AN ACT FURTHER AMENDING PRESIDENTIAL
DECREE NO. 1467, AS
AMENDED, OTHERWISE KNOWN AS THE
CHARTER OF THE
PHILIPPINE CROP INSURANCE
CORPORATION (PCIC), IN ORDER TO
MAKE THE CROP INSURANCE SYSTEM MORE
STABLE AND MORE
BENEFICIAL TO THE FARMERS COVERED
THEREBY AND FOR THE
NATIONAL ECONOMY
Types of Philippine Agricultural
Insurance Products and Programs
1. Crop Insurance for rice
2. Crop Insurance for corn
3. Livestock Insurance Program
4. Fisheries Insurance Program
5. Non-crop agricultural assets Insurance Program
6. High value commercial crop insurance
7. Accident and dismemberment security scheme
The Five Insurance Program are:

1. Rice Crop Insurance for the Department of Agriculture

Weather Adverse Rice Areas (WARA)
2. Rice Crop Insurance for DA-LBP SIKAT SAKA program
3. Farmers and fisherfolk listed in the Registry System for
Basic Sectors in Agriculture (RSBSA)
4. Agrarian Reform Beneficiaries (ARB’s) participating in the
agrarian production credit program (APCP) and credit
assistance program for program beneficiaries development
(CAP-PBD)
5. For subsistence farmers and fisherfolks directly hit by
Typhoon Yolanda or Haiyan
TYPES OF INSURANCE COVER
■ Multi-Risk Cover - This is a comprehensive coverage
against crop loss caused by natural disasters (i.e.,
typhoon, flood, drought, earthquake, volcanic eruption
and tornado) as well as infestation of selected major
plant pests and diseases.

■ Natural Disaster Cover - This is a limited coverage

against crop loss caused by natural disasters.
COVERED RISKS
■ Natural disasters including typhoon, flood, drought,
earthquake, volcanic eruption and tornado.
■ Plant diseases (e.g., tungro, rice blast/neck rot, grassy
stunt, bacterial leaf blight and sheath blight).
■ Pest infestation by any of the following major pests:
rats, locusts, armyworms/cutworms, stemborers, rice
grain bugs, black bugs and brown
planthoppers/hopperburns
EXCLUDED
RISKS
Losses arising from:
■ Fire from whatever cause;
■ Theft and robbery, pillage, sequestration, strikes or other commotion, war,
invasion, acts of foreign enemies, hostilities (with or without declaration of war),
civil war, rebellion, revolution, insurrection, acts of terrorism, military or usurped
power or radio-active contamination whether controlled or uncontrolled;
■ Strong winds and heavy rains not induced by typhoon;
■ Unintentional acts of persons, natural or judicial, that may cause damage to the
insured crop;
■ Losses arising from failure to comply with the eligibility requirements; and
■ Any cause or risk not specified under Covered Risks Section.
Eligibility Criteria
• Crop Insurance can be availed by the farmers including share
croppers and tenant farmers provided they are growing the notified
crops in the area
• Non-Loanee farmers are also eligible to avail benefits under crop
insurance upon providing land documents
• Two more categories are identified in which the farmers can receive
the perks. These are also called Types of Coverage Components and
they are:
■ Compulsory Component: If farmers have applied for Seasonal
Agriculture Operations (SAO) credit or loans from the financial
institution for the notified crops, they will be covered compulsorily
■ Voluntary Component: Crop Insurance is option for those farmers
who fall under non-loanee farmers. If they wish to, they can register
and avail benefits from the government scheme
Conclusion
Crop insurance laws in the Philippines, as
mandated by Republic Act No. 8175, represent a
significant milestone in promoting agricultural resilience
and protecting farmers against the adverse effects of
natural calamities and other risks. While progress has
been made in implementing crop insurance programs
nationwide, there remains a need for continuous efforts
to address existing challenges, enhance outreach and
coverage, and improve the effectiveness and affordability
of crop insurance for the benefit of Filipino farmers and
the agricultural sector as a whole.