GENERAL INFORMATION ON THE HIGH-VALUE COMMERCIAL CROP INSURANCE PROGRAM
OBJECT OF INSURANCE
The object of insurance shall be the standing crops planted/grown in the farmland described in the insurance application and which the insured farmer has an insurable interest on.
AMOUNT OF COVER
The amount of cover or sum insured shall be the cost of production inputs as agreed upon by PCIC and the insured, including a portion of the value of the expected yield (at the option of the farmer) but not to exceed 120% of the cost of production inputs.
PERIOD OF COVER
The insurance coverage shall be on annual basis for annual, biennial and perennial crops, or in case of short-duration crops which mature in less than one year, the period of cover shall be from planting to harvesting, subject to some stipulations such as waiting-period and pre-harvest termination of cover for some crops, as may be specified in the policy.
HIGH-VALUE COMMERCIAL CROPS (HVCC) ELIGIBLE FOR COVER
High-value and commercially grown crops such as abaca, ampalaya, asparagus, banana, cabbage, carrot, cassava, coconut, coffee, commercial trees, cotton, garlic, ginger, mango, mongo, onion, papaya, peanut, pineapple, sugarcane, sweet potato, tobacco, tomato, water melon, white potato, etc., subject to their feasibility.
The insurance premium shall be market-rated and shall be solely borne by the insured. The premium rate shall be on a per project basis and shall depend on the result of the pre -coverage evaluation of the type and number of risks sought for coverage, as well as other factors such as location-specific agro-climatic conditions, type of soil, terrain, farm management practices and production and loss records.
The premium rate shall range from 2% to 7% of the total sum insured, subject to deductible and co-insurance provisions.
ASSIGNMENT OF INSURANCE
The insured may assign the policy to any lending institution or other financing conduits with insurable interest on the insured farm/plantation subjet to PCIC’s concurrence.
The insurable risks shall be any, all or a combination of typhoon, flood, drought, earthquake, volcanic eruption, plant diseases, pest infestations and accidental fire; provided that the risk/s covered shall be limited to those specified in the policy contract. Other perils may be covered subject to the approval of the PCIC Board.
Losses arising from:
- Fire not of accidental in nature;
- Theft and robbery, pillage, sequestration, strike or other commotion, war, invasion, acts of foreign enemies, hostilities (with or without declaration of war), civil war, rebellion, revolution, insurrection, military or unsurped power, nuclear reaction or radioactive 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 accepted farm management practices by the assured or person authorized by him to work and care for the insured crops;
- Any cause or risk not specified in the covered risk;
- Any cause or risk not specifically covered in the insurance policy.
- Prior to the effectivity of insurance;
- After harvest of the insured crops
- After expiration date of the insurance policy.
Any kind of consequential loss.
FARMER/FARMER ORGANIZATION ELIGIBILITY
Plantation owners, cooperative farm farmers, corporate farm owners and other planters/growers with insurable interest on the farm, who grow high-value commercial crops individually or collectively in large scale, may qualify for coverage under this program. Provided; however, that the crop production activities shall be supervised by an agricultural production technician whether he be an in-house technician (i.e., employed by the proponent) or a government-employed technician.
DOCUMENTS REQUIRED IN APPLYING FOR COVER
- Application for High-Value Commercial Crop Insurance.
- Parcellary or location map.
- List of Growers (if applicable).
- Other documents that may be required by PCIC.
WHERE TO FILE APPLICATION FOR COVER
- PCIC Head Office
- PCIC Regional Offices
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 the case of perils affecting crops and or fruits of crops which are highly perishable in nature such as blowdown in bananas, strong wind or typhoon-related fruit-dropping in mangoes, typhoon and/or flood affecting vegetable crops like brassicae, bell pepper and the like, cucumbers and tomato and other solanaceous vegetables, NL shall be filed within seventy-two (72) hours or three (3) days from the time of occurrence of such perils, or within the prescribed period specified in the policy contract. The NL shall at least contain the following information: name of the assured farmer, location of farm, time of occurrence of loss, nature and extent of loss.
No claim shall be entertained without proof of filing of NL.
CLAIM FOR INDEMNITY
The Claim for Indemnity (PCIC Indemnity Form) shall be filed by the assured farmer/grower within thirty (30) calendar days from occurrence of loss with the PCIC Regional Office.
ADJUSTMENT AND SETTLEMENT OF CLAIM
Verification and Loss Assessment
- A Team of Adjusters (TA) composed of at least two
- members deputized by PCIC shall verify the claim and submit its findings thereon to the RO concerned for settlement.
- Depending on the value of the claim, the magnitudeof the loss, or its economic significance within the surrounding community, the PCIC Regional Manager may invite a representative from any of the following offices to join the team of adjusters:
- Office of the Provincial or Municipal Agriculturist
- Regional Office of the Department of Agriculture
- Philippine Council for Agriculture, Forestry and National Resources Research and Development (PCARRD)
- Other appropriate institutions.
Amount of Indemnity
The amount of indemnity shall be based on the following:
- Actual cost of production inputs already applied at the time of loss per Farm Plan and Budget, subject to limits stipulated in the policy contract;
- Prorated cost of harvested crops;
- Salvage value, if any;
- Percentage of yield loss.
Settlement of Claim
A claim shall be settled as expeditiously, but not later than sixty (60) calendar days from submission by the insured of complete claims documents to the PCIC Regional Office.
The insured shall be entitled to a no-claim benefit of at least ten percent (10%) of premiums paid for three (3) crop seasons for short duration crops or during the immediately preceding policy year for annual, biennial, perennial crops as well as for other seasonal crops grown only once year, not subject on any claim, which may be used to finance premium credit applicable to renewal premium for the immediately following crop season/year.
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