Businessmirror february 18, 2018

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House okays bill expanding PCIC coverage to shield farmers from impacts of climate change

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Reinventing crop insurance in PHL

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By Jovee Marie N. dela Cruz

ilipino farmers need not fear a total loss of their resources after every calamity once the proposal of Rep. Arthur C. Yap of the Third District of Bohol becomes a law.

House Bill (HB) 6923, which calls for an overhaul of the cropinsurance system of the Philippines by allowing it to provide index-based direct insurance and reinsurance policies, has been approved on third and final reading by the House of Representatives. Yap noted that the Philippines needs a law strengthening the Philippine Crop Insurance Corp.

(PCIC), because the country’s farm sector is constantly under threat of climate change. The PCIC’s coverage, he said, should be expanded to allow it to engage in index-based insurance and reinsurance. “There’s a lot of effort on infrastructure spending, on technology, on farm-to-market roads, but without agricultural financing, it

would be very difficult to sustain the growth of Philippine agriculture,” Yap stressed. Index-based insurance is an innovative and technically sound approach to manage risks, especially for poor and highly vulnerable farmers in the Philippine rural countryside, Yap said. “Unlike traditional crop insurance, in which indemnity payments

are linked to individual farmer yields and losses, index insurance links payments to independently established data, such as local rainfall, wind speed, temperature, typhoons, cyclones and historical yield data as trigger events to release payments and compensation to affected farmers and fisherfolk.” But while the bill has hurdled Continued on A2

Naia Terminal 2 to become domestic hub of PAL, Cebu Pacific ven before House Speaker Pantaleon D. Alvarez’s rant at a congressional hearing on Wednesday on the sorry state of the Ninoy Aquino International Airport (Naia), the keeper of the Philippines’s main gateway has already initiated a program to fix the airport’s mess. Manila International Airport Authority (Miaa) General Manager Eddie V. Monreal, for one, told the BusinessMirror that they are embarking on a P600-million renovation of the Naia Terminal 2. This is meant “to enlarge it and

accommodate PAL [Philippine Airlines] and Cebu Pacific, purely for domestic operations.” “The Naia 2 and Naia 4 [Manila Domestic Airport] would be for purely domestic flights, while Terminal 1 and Terminal 3 would

PESO exchange rates n US 52.0240

be purely for international flights,” Monreal stressed. He said the face-lift is scheduled for completion in 18 months from the awarding of contract. “We’re in the process of procurement; there is no definite date yet,” Monreal said, adding that the fund would be sourced from Miaa’s purse. Alvarez was apparently not aware of this, as he threatened to sue Monreal and other airport officials for graft should they fail to take “appropriate steps” to decongest passenger and air traffic in Manila’s airport within 45 days. “They have to comply, otherwise we will file graft cases against them for failure to do their job in protecting the welfare of the public,” Alvarez told the BusinessMirror.

ALYSA SALEN

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By Recto Mercene

Continued on A2

n japan 0.4866 n UK 72.9272 n HK 6.6508 n CHINA 8.2057 n singapore 39.5921 n australia 41.2550 n EU 64.8479 n SAUDI arabia 13.8727

Source: BSP (February 15, 2018 )


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