Duration of Project. The program shall be implemented for one year.

Clients. ARBs who are beneficiaries or participants of key programs such as Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS), Agrarian Production Credit Program (APCP), Credit Assistance Program for Program Beneficiaries Development (CAP-PBD), and Microfinance Capacity Development in Agrarian Reform Areas.

Coverage. Rice and corn, high-value crops, and livestock production.  It shall provide multi-risks coverage, if necessary. It shall cover the total premium requirements of ARBs.  This shall include the farmer, lending institution and national government shares for rice and corn.

Objectives. Provide ARBs and ARB household members with premiums subsidy for agricultural insurance to protect them against losses due to pest and disease infestations, natural calamities, and extreme weather events brought about by climate change; improve agricultural productivity of ARBs and ARB household members; and improve access to credit.

Responsibilities of Partner Agencies

Department of Agrarian Reform. DAR shall identify the ARBs to be provided with the premium subsidy.  It shall provide technical assistance and other support services to facilitate credit access and enhance agricultural production of ARBs. It shall also assist ARBs in the preparation of requirements for indemnity claims and ensure the submission thereof and other pertinent reports to DA-PCIC through its Regional Offices. It shall also provide funds for administrative and operational expenses related to the successful implementation of the ARB-AIP.

Philippine Crop Insurance Corporation. The PCIC shall provide the necessary agricultural insurance cover for the ARBs, utilizing the PHP 1.0 billion subsidy fund. It shall also use the program fund solely for premium payment of agricultural insurance coverage of the identified eligible farmers endorsed by DAR. It shall also provide funds for equipment, administrative and operational expenses related to the successful implementation of the ARB-AIP.


Farmers. Farmers should be ARBs or members of ARB household actually tilling or managing their respective farms duly certified by the DAR. They should also be members of an ARBO or FO. They should also be cultivating crops or raising livestock as identified in the IRR.

Farm Area/Project Area. The farm area/project area  should not exceed three hectares;   should have three crop insurance coverage per farmer for multiple cropping; the average area per farmer for collective or group farming should not exceed three hectares; and for livestock, three animals per raiser for large ruminants and 10 animals for small ruminants and swine (breeder).

Procedures for ARB Identification

  1. The DAR Provincial Offices (DARPO) shall list the ARBOs and FOs that are included in the priority beneficiaries under the program.
  2. DARPO, with the assistance of the MARO, shall validate the eligible members of the identified ARBOs and FOs, based on the basic eligibility criteria for farmers.
  3. DARPO shall inform the respective ARBOs and FOs on the eligibility of their members for the subsidy.
  4. DARPO, in collaboration with the DA-PCIC Regional Office, may conduct orientations for large ARBOs/FOs or groups of ARBOs/FOs on the ARB-AIP guidelines and the policies and procedures for underwriting and claims settlement.
  5. The DAR Regional Offices shall consolidate the list of eligible ARBOs and indicative number of eligible ARBs and ARB household members and endorse the list to the PCIC Regional Office for reference.

Procedures for Underwriting

Rice and Corn

  1. The eligible ARBs and ARB household members shall accomplish the following basic requirements: Application for Crop Insurance (ACI); Location and Sketch Plan (LSP); and Standard Farm Plan and Budget (SFPB)
  2. All applications for agricultural insurance shall be summarized per ARBO/FO in the List of Beneficiaries (LOB) in alphabetical order, family name first, using the DA-PCIC prescribed form.  Note that for contiguous areas, a single LSP covering several farms may be prepared.
  3. The ARBO/FO shall forward the LOB to the MARO and request a DAR certification that the said farmers are ARBs or ARB household members.
  4. There are two (2) tracks for submission of the application and the processing of the agricultural insurance coverage: Track 1, where the eligible ARBO/FO is a borrower from an accredited underwriter of DA-PCIC; and Track 2, where the eligible ARBO/FO is a borrower from of a financing institution that is not an accredited underwriter of DA-PCIC or the eligible ARBO/FO is not a borrower from any financing institution (self-financed farmers)

For Other Crops and Livestock

  1. The eligible ARBs and ARB household members with the assistance of DAR, DA-PCIC or other support institutions shall accomplish the basic application requirements: Application for High Value Crop Insurance or Livestock Mortality Insurance; Location and Sketch Plan or Parcellary Map; Farm Plan and Budget; and Veterinary Health Certificate  for Livestock (if required)
  2. With the assistance of DAR, the ARBO/FO shall submit the LOB along with the application documents directly to DA-PCIC Regional Office.
  3. The PCIC Regional Office shall review the documents and conduct pre-production inspection to determine the amount of coverage and the corresponding premium subsidy.
  4. The PCIC Regional Office shall prepare and approve the corresponding insurance policies and shall issue the same to the ARBO/FO.

Deviation from Approved Farm Plan and Budget

  • Any of the following changes from the data contained in the application for insurance should be reported by the insured farmer to the ARBO/FO: seed variety planted; date of sowing/planting/direct seeding; location of farm; area or size of farm planted; and method of planting.

Procedures for Claims Settlement

  1. In case of loss from a risk insured, ARB or ARB household member shall file claim for indemnity payments under existing DA-PCIC implementing rules and regulations.
  2. The assured farmers or any immediate member of his family shall file Notice of Loss (NL). The Notice of Loss shall be filed within the corresponding number of days.
  3. The assured farmer shall file within forty five (45) calendar days from occurrence of the loss a formal claim for indemnity with the concerned DA-PCIC Regional Office.
  4. The adjustment or verification of claims shall be conducted by a Team of Adjusters.
  5. In case of widespread occurrence of calamity, the DA-PCIC may adopt the collective claims adjustment scheme and the Regional General Assessment Team shall be activated.
  6. Insurance indemnity shall be paid by DA-PCIC Regional Office to the financing institution, ARBO/FO or individual assured farmers depending on the initial agreement and any assignment of claims.
  7. The amount of indemnity shall be determined based on the prevailing loss matrices and indemnity schedules and the following factors: extent of yield loss/crop damage; stage of crop at the time of damage; cost of production inputs at the time of loss/damage; and amount of insurance.
  8. Claims shall be settled within 60 days from receipt of complete claims documents.
  9. Request for reconsideration regarding shall be filed within thirty (30) calendar days upon receipt of claim payment or notice of claim disapproval.

Program Management and Monitoring System

Program Management. As to program management, the following bodies shall be formed: Program Management Committee which shall direct and formulate policies for the Program; Technical Working Group (TWG) which shall provide technical support to the PMC; Program Secretariat (PS) which shall provide administrative support to the TWG and PMC; and Regional Coordinating Teams (RIT) which shall coordinate the over-all ARB-AIP implementation in the region.

Monitoring System. A monitoring system shall be installed by DAR and DA-PCIC to track the progress of program implementation.  The program monitoring system shall include progress Monitoring and Reporting and Conduct of Program Management Meetings