Manila: A lawmaking tandem from Abra is pushing for the passage of a measure seeking to establish a free weather index-based crop insurance (FIBCI) with an automatic payout system to better help small farmers during calamities caused by climate change.
According to Philippines News Agency, House Bill No. 6519, also known as the Weather Ready Farmers bill, has been filed by Solid North Party-list Rep. Ching Bernos and Abra Lone District Rep. JB Bernos. The bill aims to create an FIBCI Program overseen by the Insurance Commission, featuring a PHP5.8 billion Premium Subsidy Fund. The program's primary beneficiaries will be farmers, agriculture and fisheries producers, or farmers' cooperatives who register with their local government units (LGUs) for crop or production insurance programs offered as group policies through accredited insurance providers.
LGUs may allocate local funds to supplement the premium subsidies provided by the national government. Additionally, farmers have the option to pay premiums for added insurance features offered by providers. Payouts under the bill are triggered when insurance parameters based on a weather reference index, such as rainfall, wind speed, and temperature, are breached.
A FIBCI Oversight Board will also be established to monitor and oversee the program's operation and administer all index-based agriculture insurance in the country. The board will include heads from the Insurance Commission, departments of Agriculture and Interior and Local Government, Cooperative Development Authority, National Disaster Risk Reduction and Management Council, Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), Department of Science and Technology-Advance Science and Technology Institute, and representatives from farmer organizations and the insurance industry.
Solid North Party-list Rep. Ching Bernos highlighted the measure's importance in ensuring timely compensation for small farmers, minimizing administrative delays, and preventing disputes over loss verification. Bernos noted that the weather index-based payouts eliminate the need for a state of calamity declaration by LGUs to trigger insurer obligations.
JB Bernos emphasized the necessity of shifting away from the traditional crop insurance system's tedious and costly processes. He pointed out that the current system causes delays in insurance payouts, which hampers farmers' recovery and affects the country's food security. Bernos stressed that changing the system is essential to promptly address the needs of farmers and food producers.
