Las Piñas Representative Camille A. Villar re-filed a weather-based crop insurance to protect farmers from climate change and weather disturbances.
As cited in the report of Business World, House Bill No. 3310 has been proposed as the Free Index-Based Agriculture Insurance (FIBAI) Act of 2019.
“Weather index-based crop insurance (WIBCI) uses an index like rainfall “to determine payouts and these can be made more quickly and with less argument than is typical for conventional crop insurance,” report stated.
“WIBCI is a unique insurance product based on the occurrence of breach of a weather-based parameter, which serves as legal proof of the occurrence of extremely adverse weather conditions and proxy for the expected crop damage,” Ms. Villar said in a statement Sunday.
“The weather-based crop insurance will improve the mandate and current coverage of the Philippine Crop Insurance, Corp. (PCIC). “So far, it has too few participants and very miniscule outreach compared with the total number of farmers that are supposed to be served,” she added.
The said bill needs P5.8 billion per year to be initially sourced from the Risk Management Fund.
The insurance maximizes the use of relevant technologies and networks in order to reach out to more and more farmers; and provides faster payout turn-around in the event of breach of the agreed parameters without need for bureaucratic processing by an adjuster. The hassle-free disbursement of claims is made possible through the use of technology and a widely distributed network of payment centers,” Villar mentioned in the report.
Moreover, the bill also aims to provide a second layer of insurance support or a re-insurance that will help the originating insurance providers absorb shocks from disasters.
This will allow the providers of insurance to tap predictable financial relief and gives them greater capacity to insure more farmer clients and strengthen social resilience.