Section 3
SEC. 3. Section 1 of Presidential Decree No. 1467, as amended, is hereby further amended, to read as follows: "SEC. 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 be attached to the Department of Agriculture for budgetary purposes. The Corporation shall insure qualified farmers against losses arising from natural calamities, plant diseases and pest infestations. Initially, the Corporation shall provide insurance coverage for palay crops and later on to other crops without prejudice to the inclusion of other non-crop agricultural assets such as but not limited to machineries equipment, transport facilities and other related infrastructures, as the Board of Directors of the Corporation may determine. Such crop insurance shall cover, in every case, the cost of production inputs, the value of the farmer's own labor and those of the members of his household, including the value of the labor of hired workers, and a portion of the expected yield as the Board of Directors in its discretion, decide to insure. Such insurance protection, however, shall exclude losses arising from avoidable risks emanating from or due to the negligence, malfeasance or fraud committed by the insured or any member of his immediate farm household or employee or the failure of the insured to follow proven farm practices."