AMENDING PRESIDENTIAL DECREE NO. 1467 CREATING THE “PHILIPPINE CROP INSURANCE CORPORATION” BY ADDING PENAL SANCTIONS THEREIN.

• Number: Presidential Decree No. 1733
• Sections: 6

Preamble

WHEREAS, under the Presidential Decree No. 1467, the

Philippine Crop Insurance Corporation was created to provide insurance

protection to farmers against losses arising from natural disasters, as well as

plant diseases and pest infestation;

WHEREAS, it is the policy of the state to provide

integration of the system of crop insurance into the country’s economic and

social development and for this reason has made the participation therein

compulsory for all farmers obtaining production loans for palay under the

supervised credit programs;

WHEREAS, the effective implementation of the compulsory

requirement of the law requires the full support and cooperation of lending

institutions participating in the government’s supervised credit programs;

WHEREAS, to insure the attainment of the objective of the

law, there is a need to strengthen Presidential Decree No. 1467 by defining

therein the duties and obligations of the said lending institutions and

providing penal sanctions for violation of the provisions of said decree;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution, do hereby

decree and order:

Section 1

SECTION 1. Section 4 of Presidential Decree No. 1467 is

hereby amended to read as follows:

“SECTION 4. Who shall be insured. – Participation

in the palay crop insurance shall be compulsory for all farmers obtaining

production loans for palay under the supervised credit program and optional on

the part of self-financed farmers provided that they agree to place themselves

under the supervision of agricultural production technicians. No lending

institution shall approve or grant production loan for palay under the

supervised credit program unless the same is covered by a crop insurance

pursuant to his Decree. The term “supervised credit program” as used in this

Decree shall mean the production credit program wherein the farmer who obtained

production loans for palay agrees in writing that he will apply proven farm

practices necessary to conserve the land, improve its fertility and increase its

production, and abide by the approved farm plan and budget jointly prepared by

him and the duly accredited supervised credit technician. The term “supervision

of agricultural production technician” shall mean the supervision undertaken by

agricultural production technicians who are duly accredited by the appropriate

government agencies concerned, as required under the supervised credit

system.”

Section 2

SECTION 2. A new section is inserted between Section 14 and

15 of the said Decree, to be designated as Section 14-A which shall read as

follows:

“SECTION 14-A. All lending institutions granting production

loans for palay under the supervised credit program of the government shall

automatically act as underwriters for and on behalf of the corporation. As such,

they shall receive and process applications for insurance coverage; approve

those found in order and collect premiums therefore. Premiums so collected,

together with the premium payable by the lending institution itself, shall be

remitted to the corporation in the manner and within such period as may be

prescribed by the corporation.”

Section 3

SECTION 3. A new section is inserted between Sections 18 and

19, to be designated as Section 18-A, which shall read as follows:

“SECTION 18-A. Any person or entity granting production loan

for palay under the supervised credit program of the government without

requiring crop insurance therefore or having collected premiums from farmers,

would fail to remit the same within the time and place specified in the rules

and regulations of the corporation shall, upon conviction, be punished by a fine

not exceeding Ten Thousand Pesos (P10,000.00) or imprisonment of not exceeding

six (6) months, or both, at the discretion of court.

“Any person or entity who shall violate any provision of this Decree or any

rules and regulations issued for its implementation, for which no penalty is

provided, shall be deemed guilty of a penal offense, and upon conviction, be

punished by a fine not exceeding five thousand Pesos (P5,000.00) or imprisonment

of two (2) months, or both, at the discretion of the court.

“Whenever any violation of the provisions of this section is committed by a

corporation or association, or by a government office or entity, the executive

officer or officers of said corporation, association or government office or

entity who shall have knowingly permitted, or failed to prevent, said violation

shall be held liable as principal.”

Section 4

SECTION 4. All existing laws, rules and regulations which

are inconsistent herewith are hereby repealed or amended accordingly.

Section 5

SECTION 5. This Decree shall take effect immediately.

Done in the City of Manila, this 21st day of October, in the year of Our

Lord, nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JUAN C. TUVERA

Senior Presidential

Assistant