MANILA, Philippines - The Philippine Insurers and Reinsurers Association (PIRA), the umbrella group of non-life insurers, reiterated the need for a mandatory earthquake insurance for residential buildings and small to medium businesses.
The PIRA noted that less than one percent of the 14 million people in the metropolis are insured against earthquakes.
The group said millions of Filipinos would be devastated with no one but the government and foreign aid to depend on when a powerful typhoon hits the country.
“We have heard so much about the ‘Big One’ already but there is not much discussion on how Filipinos can protect themselves from this earthquake’s economic effects. Insurance is a very effective tool in recovering from such disaster as evidenced by experiences in countries like Japan,” PIRA chairman Michael Rellosa said in a statement.
“Without insurance to tide them over, we Filipinos would have a hard time getting back on our feet when the Big One happens,” he added.
Antonio Cabusao, member of the PIRA public relations committee, said the proposal on compulsory earthquake insurance has already been submitted to Finance Secretary Cesar Purisima.
“Hopefully, President Aquino will approve this and come up with an executive order,” Cabusao told reporters on the sidelines of a seminar organized by The Insurance School of Japan in Makati yesterday.
Congress needs to pass a law to institutionalize the policy.
When asked if PIRA is optimistic such law would be passed with the 2016 election nearing, Cabusao said: “We are always keeping our fingers crossed.”
“We’re not giving up on it. We’re doing this because we were asked by the Insurance Commission. This is an initiative of the government and this is our way of cooperating,” he said.
Once implemented, the insurance will be one of the requirements for those seeking business permits and will be paid along with the annual realty tax.
The Philippine Institute of Volcanology and Seismology has warned about 33,000 people could die if a 7.2-magnitude quake caused by the West Valley Fault ravages Metro Manila and nearby areas.