Weather index-based insurance launched in Cagayan

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Saturday, September 29, 2012

TUGUEGARAO CITY, Cagayan -- The Philippine Crop Insurance Corporation (PCIC) has launched a weather index-based insurance in Cagayan.

The PCIC in Region 2 (PCIC-2) launched the Philippine Climate Change Adaptation Project (Philccap) Subcomponent 2.3 - Pilot Testing of Weather Index-Based Crop Insurance (WIBCI) on September 25 in Cabasan, Peñablanca and on September 26 in Gosi Norte, Tuguegarao City.

The Philccap is a project of Department of Agriculture (DA) and Department of Environment and Natural Resources (DENR) in partnership with World Bank (WB).

The program aimed to uplift the capability of farmers in adapting climate change thus, mitigate the hardship of insured farmers against financial loss due to adverse condition of weather parameters like rainfall and temperature.

Norman R. Cajucom, acting senior vice-president of PCIC, said they have two pilot sites – in Ilo-Ilo, 75 beneficiaries and Cagayan, 170 beneficiaries, with pilot crops - rice and corn.

WIBCI operates on the concept of area approach for rice and corn using the perils, excessive rainfall and drought, as basis in insurance claim payment.

Cajucom said that for the meantime traditional crop insurance computation will be used in computing premiums to be paid.

Report from Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) of weather parameters uses as proxy for compensating losses in production and does not require loss assessment, also, it has a lower administrative cost and less technically complex, thus, farmers are paid in 48 hours.

It can easily be distributed to farmers to increase their access to finance and to protect farmers and loan providers from weather risk.

Cajucom said that with WIBCI, they can already cater the needs of the millions of farmers.

Cajucom added that farmers should first be taught of crop management and pest and control diseases and educate them on role and benefits of insurance so will they appreciate, accept and patronize it.

Edna SP. Marallag, regional manager of PCIC-2, urged farmer-participants to work hand-in-hand and embrace the program.

Marallag said they will be receiving an incentive of free seeds and fertilizer once enrolled in WIBCI. (TCB/SRA-PIA2)

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