High value crops
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This document provides a summary of the Philippines' high-value commercial crop insurance program. It outlines that the program insures standing crops against risks like typhoon, flood, drought and disease. Premiums range from 2-7% of the total insured value. Eligible crops include banana, coconut, coffee and other high-value crops. Farmers must file a notice of loss within 10 days of an event and a claim for indemnity within 30 days to receive compensation based on production costs and yield loss. The goal is to provide insurance protection to large-scale commercial farmers.
High value crops
- 1. GENERAL INFORMATION ON THE HIGH- INSURANCE PREMIUM of the assured/non-compliance with accepted VALUE COMMERCIAL CROP INSURANCE farm management practices by the assured or The insurance premium shall be market-rated and person authorized by him to work and care for the PROGRAM shall be solely borne by the insured. The premium insured crops; rate shall be on a per project basis and shall depend • Any cause or risk not specified in the covered risk; on the result of the pre-coverage evaluation of the • Any cause or risk not specifically covered in the OBJECT OF INSURANCE type and number of risks sought for coverage, as well insurance policy. as other factors such as location-specific agro-climatic The object of insurance shall be the standing crops conditions, type of soil, terrain, farm management practices and production and loss records. Losses occurring: planted/grown in the farmland described in the insurance application and which the assured farmer has The premium rate shall range from 2% to 7% of • Prior to the effectivity of insurance; an insurable interest on. the total sum insured, subject to deductible and co- • After harvest of the insured crops; insurance provisions. • After expiration date of the insurance policy. AMOUNT OF COVER ASSIGNMENT OF INSURANCE Any kind of consequential loss. The amount of cover or sum insured shall be the cost of production inputs as agreed upon by PCIC and The assured may assign the policy to any lending FARMER/FARMER ORGANIZATION ELIGIBILITY the assured, including a portion of the value of the institution with insurable interest on the insured farm/ expected yield (at the option of the farmer) but not to plantation, subject to PCIC’s concurrence. Plantation owners, cooperative farm farmers, exceed 120% of the cost of production inputs. corporate farm owners and other planters/growers with COVERED RISKS insurable interest on the farm, who grow high-value PERIOD OF COVER commercial crops individually or collectively in large The insurable risks shall be any, all or a combination of typhoon, flood, drought, earthquake, volcanic scale, may qualify for coverage under this program. The insurance coverage shall be on annual basis for eruption, plant disease, pest infestation and accidental Provided; however, that the crop production activities annual, biennial and perennial crops, or in case of short- fire; provided that the risk/s covered shall be limited to shall be supervised by an agricultural production duration crops which mature in less than one year, the those specified in the policy contract. Other perils may technician whether he be an in-house technician period of cover shall be from planting to harvesting, be covered, subject to the approval of the PCIC Board. (i.e., employed by the proponent) or a government- subject to some stipulations such as waiting-period and employed technician. pre-harvest termination of cover for some crops, as may EXCLUDED RISKS be specified in the policy. DOCUMENTS REQUIRED IN APPLYING FOR Losses arising from: COVER HIGH-VALUE COMMERCIAL CROPS (HVCC) ELIGIBLE FOR COVER • Fire not of accidental nature; 1. Application for High-Value Commercial Crop • Theft and robbery, pillage, sequestration, war, Insurance. invasion, acts of foreign enemies, hostilities (with High-value and commercially grown crops such 2. Parcellary or location map. or without declaration of war), civil war, rebellion, as abaca, ampalaya, asparagus, banana, cabbage, 3. List of Growers (if applicable). revolution, insurrection, military or usurped power, carrot, cassava, coconut, coffee, commercial trees, nuclear reaction or radioactive contamination 4. Other documents that may be required by PCIC. cotton, garlic, ginger, mango, mongo, onion, papaya, (whether controlled or uncontrolled); peanut, pineapple, sugarcane, sweet potato, tobacco, • Any measure resorted to by the government in the WHERE TO FILE APPLICATION FOR COVER tomato, water melon, white potato, etc., subject to their larger interest of the public; • Avoidable risks emanating from or due to neglect • PCIC Head Office feasibility. • PCIC Regional Offices
- 2. NOTICE OF LOSS 2. Regional Office of the Department of Agriculture. 3. Philippine Council for Agriculture, Forestry and HIGH-VALUE In the event of loss arising from risks insured against, a written Notice of loss (NL) shall be sent to the PCIC National Resources Research and Development. 4. Other appropriate institutions. COMMERCIAL CROP Regional Office, within ten (10) calendar days from occurrence of loss and before the scheduled date of Amount of Indemnity INSURANCE PROGRAM harvest. In the case of perils affecting crops and or fruits of crops which are highly perishable in nature such as The amount of indemnity shall be based on the following: General Information on the blowdown in bananas, strong wind or typhoon-related fruit-dropping in mangoes, typhoon and/or flood High-Value Commercial Crop affecting vegetable crops like brassicae, bell pepper and • Actual cost of production inputs already applied at the like, cucumbers and tomato and other solanaceous the time of loss per Farm Plan and Budget, subject Insurance Program vegetables, NL shall be filed within seventy-two (72) to limits stipulated in the policy contract; hours from the time of occurrence of such perils, or • Prorated cost of harvested crops; within the prescribed period specified in the policy • Salvage value, if any; contract. The NL shall at least contain the following • Percentage of yield loss. information: name of the assured farmer, location of farm, time of occurrence of loss, nature and extent of Settlement of Claim loss. A claim shall be settled as expeditiously as possible but No claim shall be entertained without proof of filing not later than sixty (60) calendar days from submission of NL. by the assured of complete claims documents to the PCIC Regional Office. CLAIM FOR INDEMNITY NO-CLAIM BENEFIT The Claim for Indemnity (PCIC Indemnity Form) shall be filed by the assured farmer/grower within thirty (30) This is a benefit given to assured farmer equal to ten calendar days from occurrence of loss with the PCIC percent (10%) of premiums paid during the immediately Regional Office. preceding three (3) crop seasons for short-duration crops or during the immediately preceding policy year DEPARTMENT OF AGRICULTURE ADJUSTMENT AND SETTLEMENT OF CLAIM for annual, biennial, perennial crops as well as for other seasonal crops grown only once a year, not subject of PHILIPPINE Verification and Loss Assessment any claim. CROP INSURANCE • A team of adjusters composed of at least two (2) CORPORATION members deputized by PCIC shall verify the claim. • Depending on the value of the claim, the magnitude “Sa Paglaban sa Kahirapan at Gutom, of the loss, or its economic significance within Crop Insurance, Katulong sa Pagbangon.” the surrounding community, the PCIC Regional Manager may invite a representative from any of 7th Floor, Building A, NIA Complex, EDSA, Diliman, the following offices to join the team of adjusters: Quezon City, Philippines 1. Office of the Provincial or Municipal Agriculturist. Phone (02) 441-1323 TeleFax (02) 441-1324 Email rmg@pcic.gov.ph