GENERAL INFORMATION ON THE CORN CROP INSURANCE PROGRAM

OBJECT OF INSURANCE

The object of insurance shall be the standing corn crop planted on the farmland specified in the insurance application and which the assured farmer has an insurable interest on.

AMOUNT OF COVER

The insurance shall cover the cost of production inputs per Farm Plan and Budget, plus an additional amount of cover (at the option of the farmer) of up to a maximum of 20% hereof to cover portion of the value of the expected yield, subject to the following prescribed cover ceilings:

Hybrid Varieties P40,000 per hectare
Open-Pollinated
Varieties P28,000 per hectare

TYPES OF INSURANCE COVER

Multi-Risk Cover – This is a comprehensive coverage against crop loss caused by natural disasters (i.e., typhoon, flood, drought, earthquake, and volcanic eruption) as well as pest infestation and plant diseases. Natural Disaster Cover – This is a limited coverage against crop loss caused by natural disasters.

PERIOD OF COVER

The period of cover shall be from planting up to harvesting; provided that insurance coverage shall commence from the date of issuance of the Certificate of Insurance Cover (CIC) or the date of emergence of the first leaf of corn plant, whichever is later.

INSURABLE CORN VARIETIES

All corn varieties accredited for production by the National Seed Industry Council (NSIC) are insurable.

PREMIUM RATE

Premium rate is variable per region, per season and per risk classification. This shall be shared by the farmer, lending institution and the government.

 

National Composite Rates and

Premium Sharing (%)

 

Borrower Farmers

Multi-Risk Cover
Low Risk Medium Risk High Risk
L.I. 3.00 3.00 3.00
Gov’t. 10.62 10.62 10.62
Total 16.45 19.27 22.10
Natural Disaster Cover
Low Risk Medium Risk High Risk
Farmer 1.90 3.80 5.70
L.I. 2.00 2.00 2.00
Gov’t. 7.50 7.50 7.50
Total 11.40 13.30 15.20

Self- Finance Farmers

Multi-Risk Cover
Low Risk Medium Risk High Risk
Farmer 5.83 8.65 11.48
Gov’t. 10.62 10.62 10.62
Total 16.45 19.27 22.10
Natural Disaster Cover
Low Risk Medium Risk High Risk
Farmer 3.90 5.80 7.70
Gov’t. 7.50 7.50 7.50
Total 11.40 13.30 15.20

 

COVERED RISKS

  • Natural disasters including typhoons, floods, drought, earthquakes, and volcanic eruptions.
  • Plant diseases, e.g., stalk rot, banded leaf and sheath blight.
  • Pest infestation by any of the following major pests: rats, locusts, armyworms/cutworms and cornborers.

EXCLUDED RISKS Losses arising from:

  • Fire from whatever cause;
  • Theft and robbery, pillage, sequestration, strikes or other commotion, war, invasion, acts of foreign enemies, hostilities (with or without declaration of war), civil war, rebellion, revolution, insurrection, military or usurped power, radio-active contamination (whether controlled or uncontrolled);
  • Any measure resorted to by the government in the larger interest of the public;
  • Avoidable risks emanating from or due to neglect of the assured/non-compliance with the accepted farm management practices by the assured or person authorized by him to work and care for the insured crop;
  • Strong wind and heavy rain not induced by typhoon; and
  • Any cause or risk not specified in the covered risks.

Losses occurring:

  • Prior to the effectivity of insurance;
  • Prior to the emergence of first leaf;
  • Beyond the scheduled dates of harvest as appearing in the FPB and CIC unless reported in writing to the PCIC at least ten (10) days before the actual harvest; and
  • After harvest.

EXCLUDED RISKS Losses arising from:

  • Fire from whatever cause;
  • Theft and robbery, pillage, sequestration, strikes or other commotion, war, invasion, acts of foreign enemies, hostilities (with or without declaration of war), civil war, rebellion, revolution, insurrection, military or usurped power, radio-active contamination (whether controlled or uncontrolled);
  • Any measure resorted to by the government in the larger interest of the public;
  • Avoidable risks emanating from or due to neglect of the assured/non-compliance with the accepted farm management practices by the assured or person authorized by him to work and care for the insured crop;
  • Strong wind and heavy rain not induced by typhoon; and
  • Any cause or risk not specified in the covered risks.

Losses occurring:

  • Prior to the effectivity of insurance;
  • Prior to the emergence of first leaf;
  • Beyond the scheduled dates of harvest as appearing in the FPB and CIC unless reported in writing to the PCIC at least ten (10) days before the actual harvest; and
  • After harvest.

FARM ELIGIBILITY

  • The farm must not be part of a riverbed, lakebed, marshland, shoreline or riverbank;
  • The farm must have an effective irrigation and drainage systems;
  • The farm must be accessible to regular means of transportation;
  • The farm must be suitable for production purposes in accordance with the recommended package of technology (POT), e.g., not more than 15 degrees slope, except for those farmland with contour structure using the Sloping Agricultural Land Technology (SALT); and
  • Farm location must have generally stable peace and order condition and not hazardous to health.

DOCUMENTS REQUIRED IN APPLYING FOR COVER

Individual Borrowing Farmer

  • Application for Production Loan (APL) which also serves as application for crop insurance.
  • Farm Plan and Budget (FPB) – showing schedule of farm activities, e.g., date of planting and harvest, etc.
  • Location Sketch Plan (LSP)/Control Map (CM)- showing landmarks and names of adjoining lot owners.

Farmers Borrowing as a Group

  • List of Borrowers (LOB)- containing the names and addresses of the borrowers, the farm area, location, planting schedules, variety, amount of loan and signatures of borrowers.
  • Standard Farm Plan and Budget (SFPB).
  • Control Map (CM).

Self-financed Farmer

  • Application for Crop Insurance (ACI)
  • Farm Plan and Budget (FPB)
  • Location Sketch Plan (LSP)/Control Map (CM)

WHERE TO FILE APPLICATION FOR COVERAGE

  • Lending institution where farmers obtained their production loans.
  • PCIC Regional Offices/PCIC authorized underwriting agents.

WHEN TO FILE APPLICATION FOR COVERAGE

Any day before the date of planting up to fifteen (15) calendar days after planting.

NOTICE OF LOSS

In the event of loss arising from risks insured against, a written Notice of Loss (NL) shall be sent to the PCIC Regional Office within ten (10) calendar days from occurrence of loss and before the scheduled date of harvest. In cases where the cause of loss is due to pest infestation, disease or drought and where the effect of damage is gradual or the full extent thereof is not immediately determinable, the NL shall be filed upon discovery of loss. In no case shall this be later than twenty (20) calendar days before the scheduled date of harvest. The NL shall at least contain the following information: name of the assured farmer, CIC number, lot number, time of occurrence of loss, stage of cultivation, nature, cause and extent of loss.

CLAIM FOR INDEMNITY

The Claim for Indemnity (PCIC Indemnity Form) shall be filed by the assured farmer or any immediate member of his family with the concerned PCIC Regional Office within forty five (45) calendar days from occurrence of loss.

ADJUSTMENT AND SETTLEMENT OF CLAIM Verification and Loss Assessment

A team of adjusters composed of two (2) members, one from PCIC and the other from either the DA/DILG or DAR or NIA or concerned LI, shall verify the claim.

Loss Category:

  • Total loss – if loss is 90% and above.
  • Partial loss – if loss is more than 10% and below 90%
  • No loss – if loss is 10% or less.

Amount of Indemnity

The amount of indemnity shall be based on the ff:

  • Stage of cultivation at time of loss.
  • Actual CPI (per FPB) already applied at time of loss.
  • Percentage of yield loss.

Settlement of Claim

A claim shall be settled as expeditiously as possible but not later than sixty (60) calendar days from submission by the affected farmers of complete claims documents to PCIC RO. A claim not acted upon within 60 calendar days shall be considered approved.

NO-CLAIM BENEFIT

This is a benefit to assured farmer provided under Sec.14 of R.A. 8175 equal to 10% of his net premium share paid for the immediately preceding three (3) insured crop seasons not subject of any claim.

DEATH BENEFIT

This is a built-in death benefit component of the insurance package for corn crop equivalent to P10,000 per assured farmer who may suffer death within the term of coverage; provided said farmer is not more than 75 years of age at the inception of insurance.

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CORN CROP INSURANCE PDF