P17B insurance protection for ARBs provided by DAR and PCIC

Quezon City, Philippines, September 17, 2022 - The insurance protection plan is contained in the joint program called the “Agrarian Reform Beneficiaries-Agricultural Insurance Program (ARB-AIP).” The ARB-AIP will benefit over 224,000 ARBs or members of their households who are actually cultivating around 330,000 hectares of land and engaged in raising some 30,700 farm animals, who are eligible for insurance premium subsidy.

From these ARBs, there are estimated 99,580 rice farmers tilling 178,801 hectares;  37,772 corn farmers cultivating around 72,506 hectares; and about 85,760 commercial crop farmers cultivating around 78,633 hectares. Nine hundred twenty four (924) farmers raise 30,742 animals.

Each eligible ARB shall have access to protection cover up to three hectares (maximum award per CARP beneficiary) and up to three types of insurance coverage only which is good for two cropping seasons.

The Department of Agriculture (DA), through the Philippine Crop Insurance Corporation (PCIC), has partnered with the Department of Agrarian Reform (DAR) to provide some P17.1 billion worth of crop insurance protection to agrarian reform beneficiaries (ARBs) over the next two cropping seasons.

The insurance protection plan is the first such collaboration between two of the country’s main rural development agencies and the biggest group plan ever issued by the DA-PCIC. It aims to provide the ARBs a safety net against fortuitous events caused by climate change, also crop pests and diseases.  

Additionally, beneficiaries will be provided protection against loss of limbs or life under its Accident and Dismemberment Security Scheme. To qualify, the program beneficiaries must be participants of key DAR programs, such as the Agrarian Reform Connectivity andEconomic Support Service (ARCCESS), Agrarian Production Credit Program (APCP), Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) and Microfinance Capacity Development in Agrarian Reform Areas. DAR will identify the eligible beneficiaries.

DAR will put up the premium subsidy worth P1B from the DAR-GPS for Agrarian Reform Beneficiaries. Of the amount, P533.78M will be allocated for rice farmers, P385.82, corn farmers, P79.09M for high value crop farmers, P1.31M for livestock. The premium cost for the individual farmer’s life and limb coverage amounting to P5.43M would come from interest income of the DAR-Government Premium Subsidy (DAR-GPS) Fund.

For its part, DA-PCIC will provide the insurance cover worth some P17.07B from which some P4.94B will be reserved for rice, P2B for corn, P2.35B for commercial crops, P13M for livestock, and some P7.77B for the individual farmer’s life and limb.

In cases where the insured risks happens, the DA-PCIC will pay out damage claims from these beneficiaries within 20 days, less than the 60-day reglementary period. This is made possible by the ISO-certified systems and processes established by the DA-PCIC.

Depending on the extent of damage and the cost of farm investment, the farmers may receive payments for damages worth P39,000 to P52,000 per hectare for inbred and hybrid rice, respectively;  P28,000 and P40,000 for every hectare of open-pollinated and hybrid corn, respectively;  and  up to P50,000 for life and limb. These are various indemnity figures for commercial crops and animals as there are many types of crops and animals involved.

Link: DAR-PCIC orientation (on Facebook page)