Pursuant to FY 2014 General Appropriations Act, RA 10633, the subsidy to the Philippine Crop Insurance Corporation amounting to One Billion One Hundred Eighty Three Million   Seven Hundred Seventy One Thousand Pesos (P1,183,771,00)  shall be used exclusively for the full cost of insurance premiums of subsistence farmers and fisherfolk for any of the following types of insurance: crop, livestock, fisheries, and non-crop agricultural asset: PROVIDED, That the PCIC shall ensure that the beneficiaries are the subsistence farmers and fisherfolk registered under the Registry System for Basic Sectors in Agriculture, and are not receiving any other subsidy for the foregoing types of insurance from the local government. In no case shall said amount be used for any other purpose.

Based on the above provisions, PCIC issued Memorandum Circular No. 2014-001 dated January 02, 2014 on the Insurance Production Target and Related Guidelines on the Utilization of Government Premium Subsidies for FY 2014.

During the PCIC National Conference on PCIC’s Operation on February 26 to 27, 2014, the participants suggested certain modifications on the guidelines in Memorandum Circular No 2014-001. Thus, modifications and enhancements are incorporated in this Revised Implementing Guidelines on the Utilization of Government Premium Subsidies, as follows:


1.   Total GPS Fund Appropriated – The amount of GPS under the FY 2014 GAA is P1,183,771,000.00

2.    Types of Insurance Lines Eligible for GPS

  1. Rice Crop
  2. Corn Crop
  3. High-Value Commercial Crop
  4. Livestock
  5. Fisheries
  6. Non-Crop Agricultural Asset

3.   Percentage (%) of GPS allowed in the Premium Cost – The percentage  (%) of GPS in the premium cost is  100% (full premium subsidy).

4.   Premium Rates – The premium rates shall be in accordance with the PCIC’s existing guidelines and procedures in determining the applicable premium rates.

5.   Conditions

  1. Farmers and fisherfolk are registered in the Registry System for Basic Sectors in Agriculture (RSBSA);
  2. Farmers and fisherfolk under RSBSA are not receiving any other subsidy for the foregoing types of insurance from the local government;
  3. Farmers and fisherfolk under RSBSA are located in the 70 priority provinces, identified by the DBM per NBM No. 118, dated April 25, 2013, as follows:
  • Luzon: Abra, Apayao, Aurora, Bataan, Batanes, Batangas, Benguet, Bulacan, Cagayan, Cavite, Ifugao, Ilocos Sur, Kalinga, Laguna, La Union, Marinduque, Mountain Province, , Ilocos Norte, Isabela, Nueva Ecija, Nueva Vizcaya,Oriental Mindoro, Palawan, Pampanga, Pangasinan, Quzon, Quirino, Rizal  & Zambales. (29)
  • Visayas: Albay, Aklan, Antique, Biliran, Bohol, Camarines Norte, Camarines Sur, Capiz, Catanduanes, Cebu, Compostela Valley, Guimaras, Iloilo, Sorsogon Eastern Samar, Masbate, Northern Samar, Samar, Siquijor, Southern Leyte.(19)
  • Mindanao:  Agusan del Norte, Agusan del Sur, Bukidnon, Camiguin, Davao del Norte, Davao del Sur, Davao Oriental,  Dinagat Island, Misamis Occidental, Misamis Oriental, North Cotabato, Lanao del Norte, Sarangani, Souther Cotabato, Surigao del Norte, Surigao del Sur, Sultan  Kudarat,  Zamboanga del Norte, Zamboanga del Sur and Zamboanga Sibugay. (22)


Farmers and Fisherfolk in the RSBSA

  1. Farmers and fisherfolk in priority provinces under the Agriculture and Fisheries Financing Program (AFFP).

    a.   For LBP borrowers, the concerned PCIC RO should coordinate directly with the LBP Lending Centers.

    b.   For clients of People’s Credit and Finance Corporation (PCFC), the loans are granted thru PCFC’s accredited NGOs, RBs, Coops, Coopbanks and POs that lend the fund to eligible sub-borrowers (i.e., Non-Agrarian Reform Beneficiaries-small farmers and fisherfolk registered in the RSBSA and their households).
    PCIC ROs should coordinate with PCFC and their accredited lending conduits.

  2. On other Credit Programs of Lending Institutions/Lending Conduits – the Regional Office Shall follow the regular underwriting procedures.
  3.  On LGU Credit/ Insurance Programs –   Farmers and fisherfolk under RSBSA who are not receiving any other subsidy for the foregoing types of insurance from the local government. If possible, they should be insured under the group crop insurance scheme.
  4. On other farmers and fisherfolk listed in the RSBSA who are not borrowing from formal lending institutions and not participating in the LGU’s Credit/Insurance Programs, the Regional Office may seek assistance from the LGU for RSBSA’s identification and listings. If possible, they should be insured under the Group Crop Insurance Scheme.


  1. Service fee for underwriters in rice and corn crop insurance lines is 5% of the farmer’s and lending institution’s shares in the premium cost.
  2. Service fee for solicitors for all other lines is 1% of the total amount of premiums.


The GPS pursuant to FY 2014 GAA will be applied on insurance policies incepting from January 1, 2014 up to December 31, 2014.