Creation of the Philippine Crop Insurance Corporation.
Section 1
SECTION 1. Creation of the Philippine Crop Insurance Corporation.—There is hereby created a body corporate to be known as the "Philippine Crop Insurance Corporation" (PCIC and herein called the Corporation) which shall provide insurance protection to farmers against losses arising from natural disasters as well as plant diseases and fest infestation, initially to palay crops and later on to other crops. Such insurance protection, however, shall exclude losses arising from avoidable risks emanating from or due to neglect, malfeasance or fraud by the insured or any member of his immediate farm household or employee or the failure of the insured to follow proven farm practices, and that the indemnity for such losses shall not exceed at all times the cost born by the insured farmer in the production of the crop.