MANILA, Philippines - The Philippine Crop Insurance Corp. (PCIC) has allotted P732 million to pay out claims by farmers whose crops were damaged by Typhoon Lando.
PCIC president Jovy Bernabe said the allocation would provide for the claims of 110,000 farmers in Regions I to IV-B who are listed in the Registry System for Basic Sectors in Agriculture (RSBA), 13,428 of which are based in Nueva Ecija.
The RSBA is a list of farmers with small landholdings, some of them agrarian reform beneficiaries cultivating a land area of three hectares or less.
The indemnity would cover losses in rice, corn and high value crops.
A rapid assessment conducted by PCIC’s regional offices showed that 95,000 hectares of insured farms were damaged by the typhoon.
Bernabe said claims filed by registered farmers may be released within 20 days from filing.
Farmers may claim an indemnity of an average of P6,000 or more depending on the extent of damage and the stage of cropping.
A maximum of three hectares per farmer is covered by free insurance. On top of the insurance provided by the PCIC, farmers may also avail of seeds from the agriculture department for regions affected by the typhoon.
Bernabe said PCIC has a budget of P1.3 billion for this year to cover the insurance needs of 700,000 to one million small farmers, representing a portion of the 11 million farmers and farm workers listed in the RSBA.
The government crop insurance arm therefore, prioritizes the provision of indemnity to landed farmers.
For 2016, PCIC has a budget of P1.6 billion.
Citing a study conducted by state think tank Philippine Institute for Development Studies, Rodelia Pagaddu, manager of PCIC’s business development and marketing department said around P8 to P10 billion is needed to cover the insurance claims of all farmer workers listed in the RSBA.
Crop insurance has been identified as one of the key climate change-adaptation measures by the Department of Agriculture, which also exercises supervision over the PCIC.
An effective insurance program marked by quick indemnity payments allows the insured farmers to recover a portion of investments lost due to extreme weather disturbances, and immediately rehabilitate their farms.