The Department of Finance (DOF) has identified the disaster-prone provinces to be covered by an insurance fund that was recently approved by President Rodrigo Duterte.
Finance Assistant Secretary Ms Paola Alvarez said that 25 disaster-prone provinces can now tap the PHP25-billion (US$486 million) insurance fund, reported Manila Bulletin citing a ministry statement.
She said that the project called, Parametric Insurance Pilot, will provide typhoon and earthquake insurance support in the provinces covered by the initiative, including the typhoon-vulnerable provinces of Batanes and Albay as well as the quake-hit province of Leyte.
“Unlike traditional indemnity insurance that takes a long time to assess and process, this Parametric Insurance Pilot will have quick-disbursing payouts whose amounts will depend on the estimated loss,” she said.
With assistance from the World Bank, the project covers Aurora, Cagayan, Camarines Norte, Camarines Sur, Catanduanes, Cebu, Davao del Sur, Davao Oriental, Dinagat Islands, and Eastern Samar. Other covered provinces are Ilocos Norte, Ilocos Sur, Isabela, Laguna, Northern Samar, Pampanga, Quezon, Rizal, Sorsogon, Surigao del Norte, Surigao del Sur and Zambales.
The pilot programme, consistent with the Philippines’ Disaster Risk Financing and Insurance Strategy, is effective for one year with effect from 28 July 2017.