The Philippine Crop Insurance Corporation (PCIC) provides Loan Repayment Protection Plan (LRP2) to agricultural producers, fisherfolk and other agricultural stakeholders. LRP2 is an insurance protection that guarantees the payment of the face value or the amount of the approved agricultural loans or agri-related microfinance or livelihood loans upon the death or total permanent disability of the insured borrower.

          I. ELIGIBILITY

Any individual or group of borrowers with ages 18 to 80 years old who availed of agricultural loans is eligible for coverage.


  • Duration – Maximum of one (1) year or less than a year, as the term of the loan specifies.
  • Commencement – Date of initial loan release or the approval of application by PCIC whichever is later.
  • Termination – Will terminate on whichever is earliest of the following dates:
    1. Full payment of the loan;
    2. Maturity of the loan;
    3. Expiry of the policy; or
    4. Default of premium payment (For staggered payment, default is reckoned ten (10) days after the premium amortization due date).


The insurance facility covers the face value of the approved agricultural loans or agri-related Microfinance or Livelihood loans of agricultural producers/fisherfolk and other agri-stakeholders or full payment of the loan upon the death or total and permanent disability of the borrower resulting from accident, natural causes and murder or assault.



The amount of insurance is equal to the amount of the approved loan of the borrower or the full amount of the loan including legitimate interest thereof, subject to the following limits:

Loan Limit Required Documents PCIC Approving
≤ 300,000 • Application and Regional Office
(Non-medical Health Statement
> 300,000 • Application and Regional Office
to 500,000 Health Statement
> 500,000 • Medical Certificate Head Office


  1. Medical certificate must be from a licensed medical practitioner/physician.
  2. Non-compliance with the required medical examination shall automatically limit the sum insured to the non-medical limit as stated above.
Premium Rate and Premium Discount as % of Approved Loan /Sum Insured
Term of Loan(No. of Mos) Premium Rate Discount for Group Coverage
No. of Members Discount
≤3 0.375 15 to 25
26 to 40
> 40
4 0.500
5 0.625
6 0.750
7 0.875
8 1.000
9 1.125
10 1.250
11 1.375
12 1.500


Premiums are inclusive of taxes.

             V. EXCLUDED RISKS

              Death or total permanent disability caused by any of the following:

  • War, invasion, act of foreign enemy, hostilities or warlike operations, mutiny, terrorism, riot, civil commotion, strike, civil war, rebellion, revolution and insurrection, and atomic fission or radioactive contamination;
  • Intentionally self-inflicted injuries, suicide or any attempt thereat, while sane or insane;
  • Vehicular accidents while driving under the influence of liquor or prohibited drugs;
  • Rendering military and paramilitary services;
  • Engagement in hazardous sports or occupation;
  • Illegal acts of the insured;
  • Engagement in aviation other than as a passenger in a commercial flight;
  • Abortion, except when pursued as a medical intervention.
  • Incidents occurring before the effectivity and after the expiry of the insurance coverage as indicated in the Certificate of Cover.


In case of death or total permanent disability of the insured, PCIC pays to the principal sum or face value of the loan, provided that the said amount is actually released,

including legitimate interest, if applicable. Please see Section 4 for other limits of liability.


Payment of claim shall be made to the lending institution/cooperative where the loan was obtained. The payment shall be applied to liquidate and settle the outstanding obligation of the insured borrower. Any excess shall be paid by the lending institution/cooperative to the primary beneficiary of the borrower. If the primary beneficiary is rendered ineligible, the secondary beneficiary shall be the recipient. If the beneficiary is a minor, the appointed trustee is the payee.


  • Where to file – Lending Institution, Cooperative, or PCIC Regional Office (RO)/PCIC  Provincial Extension Office.
  • When to file – Before loan release
  • Documents Required – Filled-out Application and Health Statement Form and Medical Certificate, if applicable

               IX. NOTICE OF CLAIM

In the event of death or total permanent disability of the insured, the lending institution/cooperative/underwriting agent, the immediate member of his family or the insured himself, as the case maybe, shall file a notice of claim (NC) in writing to the PCIC RO/PEO not later than forty five (45) calendar days from the time of death or total permanent disability.

The Notice of Claim shall at least contain the following information:

  1. Name and address of the insured;
  2. COC Number;
  3. Cause of injury/death;
  4. Date of accident and/or death; and
  5. Name of cooperative/organization/lending institution.


Within ninety (90) calendar days from the death or total permanent disability of the insured, the following claim documents should be submitted:

In case of Death

  1. Death Certificate duly signed & sealed by the Local Civil Registrar;
  2. Birth Certificate or any legally valid proof of age of the deceased borrower;
  3. Claimant Statement Form to be accomplished by the Manager of the concerned lending institution/ cooperative;
  4. Medical Certificate;
  5. Police report, if the cause of death is accident or violent means; and
  6. Other documents such as sworn affidavit of two (2) disinterested persons as may be required by PCIC.

In case of Total Permanent Disability

  1. Medical Certificate by the attending physician and certified machine copy of complete medical/ hospital records;
  2. Claimant Statement Form to be accomplished by the Manager of the concerned lending institution/ cooperative;
  3. Police report, if the cause of disability is accident or violent means; and
  4. Other documents as may be required by PCIC.

A claim shall be settled not later than thirty (30) calendar days from the submission of complete claim documents to the PCIC Regional Office or its underwriting agent.


Subject Particulars
Disappearance Disappearance per set of the insured is not commensurable. However, if death of the insured alleged to have disappeared is proven or established later to have occurred during the term of cover,  the claim maybe given due course.
Voidance & Cancellation Clause

The Policy shall be voided and cancelled by the PCIC upon occurrence of any of the following during the effective of the policy and after notice thereof of the insured/ending institution /cooperative:

a) Conviction of a crime thus increasing the hazard insured against;
b) Discovery of fraud or material misrepresentation ; and
c) Discovery of willful, reckless acts of omissions that increase the hazard insured against.

In case of cancellation, the insured i not entitled to any premium refund for the unexpired term.

Civil Code 1250
wiver Clause
It is hereby declared and agreed that the provision of article 1250 of the civil code of the Philippines (Republic Act No. 386) which read:”In case an extraordinary inflation or deflation of the currency stipulated should supervene the value of the currency at the time of the establishment of the obligation shall be the basis of payment shall not apply in determining the extent of liability under the provisions of the policy.

You can download PDF here

Loan Repayment Protection Plan