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PCIC insurance coverage
tops 2005 by 66%
By Marivic
A. Alcober
Tacloban City (6
February) -- Insurance coverage extended to agricultural
stakeholders and producers in region 8 by the Philippine Crop
Insurance Corporation, Regional Office No. 8 headed by Regional
Manager Cresencio V. Deligero, Jr., for all product lines totaled
to P78.84 M which is 112% of their P70 M target for CY 2005. The
performance is 66% higher than what PCIC has achieved last 2004
which was P47.64 M.
According Manager Deligero, "the above mentioned worth of
insurance policies covers 4,950 assured farmers with an area of
4,375.50 hectares of rice, corn and high value crops as well as
39,241 heads of livestock".
Palay, being PCIC's major product line, comprised 57% of their
production which amounted to P45.14M, followed by agricultural
asset insurance which is non-crop with P24,798M sum insured or
31%.
Deligero bared that unlike other PCIC regional offices, their
palay market consists mostly of self-financed farmers (SFF) or 84%
while the remaining 16% belong to the borrowing farmer (BF)
category. The main contributors for BF category are RB Dulag, Inc.
and Farmer Irrigation Service Coops (FISCOS) of the National
Irrigation thru their lending scheme. The production for the SFF
category came from LGUs of Ormoc City; Silago & Sogod, Southern
Leyte and a network of underwriting agents like the Municipal
Agriculturist, cooperatives, and farm input dealers.
The non-crop insurance (agricultural assets) business were
generated from credit cooperatives, ricemill and poultry farm
owners, RB Basey, Inc., Biliran National Agricultural College and
Philippine Carabo Center at LSU, Baybay.
It was also learned that high value crop insurance is composed of
abaca, ampalaya, cabbage, cassava, eggplant, ginger, peanut,
squash, sugarcane, sweet corn, sweet pepper, and watermelon with a
total of P1.66M amount of cover.
During the last quarter of 2005, the PCIC launched a new product
line known as Term Insurance Power Packages (TIPP) for
agricultural stakeholders and producers who are the farmers and
the fisher folks. These power packages are the Agricultural
Stakeholders and Producers Protection Plan (ASP3), the Accident
and Dismemberment Security Scheme (ADS2), and lastly the Loan
Repayment Protection Plan (LRP2).
ASP3 is a one year term insurance for life of the agricultural
stakeholders/producers against death resulting from accident,
natural causes, murder and assault, while the ADS2 covers death
and dismemberment due to accident. For the LRP2, it covers the
face value of the agricultural loan upon death or total permanent
disability of the borrower. This product line had just started to
take off. As of December 31, 2005, PCIC was able to insure 31
farmers with a sum insured of P0.98M.
Meanwhile, Deligero added that insurance claims payment increased
by 71% for all lines compared to CY 2004. Some P6.34M or 96% is
attributed to palay insurance involving 1,727 farmers and 1,929
hectares. The main cause of loss is pests and diseases with P3.5M
or 55%, followed by drought with P1.61M of 25% then typhoon/flood
with P1.22M or 20 per cent. The loss incidence for palay insurance
is 41%, while its damage is 14 per cent.
For CY 2005, the PCIC were able to provide P20,000 automatic death
benefit to the beneficiaries of two assured farmers who died while
their insurance policies were still enforced.
For claims payment by cause of loss, claims settlement response
time is within the 20 calendar days target for palay and corn
insurance.
Deligero disclosed that, "The PCIC regional office earned P7.66M
which is 75% higher than the previous year which was P4.39M. Even
though the claims payment increased by 70%, we were still able to
have an underwriting profit of P1.21M or 108% higher than last
year's P0.58M."
Deligero would like to inform the public that PCIC offers crop
insurance for palay and corn; livestock insurance for carabao,
cattle, swine, poultry,game fowls and race horses; high value
commercial crop insurance for sugarcane, tobacco, sweet potato,
cassava, vegetables, peanut, ginger, abaca, and industrial trees;
and the agri-asset insurance which is non-crop.
Source:
PIA Press
Release, February 6, 2006. |
