Microinsurance dispute resolution guidelines issued

Source: eDaily | 14 Aug 2013

The Philippine Insurance Commission (PIC) has issued concrete guidelines to implement the Alternative Dispute Resolution for Microinsurance (ADReM) framework. ADReM aims to provide options to resolve disputes outside the courtroom and to minimise the expense and delay of litigation.

The guidelines for the implementation of ADReM will require all insurance entities, agents and brokers  which are engaged in the microinsurance business to follow mediation-conciliation processes of claims dispute based on parameters under the banner, “Least cost, Accessible, Practical, Effective and Timely” or “LAPET”.

“The ADReM is another milestone for initiatives on microinsurance. With it, we can ensure consumer protection to the more than four million lives covered by microinsurance,” Insurance Commissioner Emmanuel Dooc said.

“The ADReM is about building bridges, closing the distance – physically and administratively – between conflicting parties and the insurance regulator,” said Mr Joselito Almario, National Credit Council Director in the Department of Finance.

To implement the resolution procedures, the PIC will accredit a pool of mediator-conciliators from which the parties in dispute can make their selection. The conflict will then be settled through a graduation of levels, beginning at community-level mediation, prior to reaching the PIC level, if necessary.

Distinct ADReM procedures have been designed for commercial insurance companies, for mutual benefit associations, and for cooperative insurance societies.

The ADReM Framework is a product of a public-private collaboration through a working group composed of the DOF-NCC, life and non-Life insurance associations (PLIA and PIRA), Rural Bankers Association of the Philippines, Chamber of Mutual Benefit Associations, Microfinance Council of the Philippines, Society of Independent Insurance Intermediaries of the Philippines, Life Underwriters Association of the Philippines and MicroEnsure Insurance Brokers Philippines. The Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ, or German Society for International Cooperation) has been providing technical assistance and funding.

The information dissemination campaign for the ADReM will be rolled out in seven regions in the Philippines beginning in September, said GIZ-RFPI Programme Director, Dr Antonis Malagardis. The new guidelines take reference from the ADReM Framework adopted by the PIC and the industry in October 2012 after a series of stakeholder consultations around the country.

Philippines: Proposal made to make quake insurance mandatory

Source: eDaily | 02 Aug 2013

The Philippine insurance regulator has said that it is pushing for legislation requiring homeowners and small businesses to insure their properties from earthquakes.

Insurance Commission Chief, Mr Emmanuel Dooc, says that the agency is working to establish a company that will provide compulsory earthquake insurance. "It's like an ordinary insurance company. It will be formed by getting equity contributions from the public and the private sectors, and this will require huge capital," he said.

"All residential property owners and small and medium-sized enterprises shall be required to get earthquake insurance. It will basically be a public-private partnership because this will require huge or substantial capital," he told reporters.

"This type of Bill requires some expertise and technical knowledge, but we are prepared to provide a technical briefing to those who will help us get this Bill enacted," he added.

The Asian Development Bank is backing the proposal, and is ready to provide a US$70-million loan for the purpose. However, "this will require counterpart funding from the private sector," he said, citing non-life insurers as possible partners for the venture

56 ARB organizations in Bicol benefit from APCP/AIP credit and insurance

Catanduanes Tribune

August 1, 2013.

A total of 56 agrarian reform beneficiary organizations (ARBOs) in Bicol are now assured of credit and insurance program assistance under the Agrarian Production Credit Program (APCP) and the Agricultural Insurance Program (AIP) respectively, after completing the documentary requirements in the recently concluded series of training-workshops this month. 

Around P150 million in program funds were accessed by the eligible ARBOs in the region under the APCP: Albay – P16,350,000.00 covering seven (7) ARBOs; Camarines Norte – P10,500,000.00 benefiting six (6) ARBOs; Camarines Sur A – P7,740,000.00 aiding six (6) ARBOs; Camarines Sur B – P59,000,000.00 involving 22 ARBOs; Catanduanes – P2,500,000.00 for two (2) ARBOs; Masbate – P39,000,000.00 for six (6) ARBOs; and Sorsogon – P14,000,000.00 funding seven (7) ARBOs.

APCP aims to provide credit assistance to agrarian reform beneficiaries (ARBs) or ARB household through organizations or other conduits which were not given the chance to access credit from other lending institutions, to support individual or communal crop production.

Aside from loans to finance crop production, APCP ensures sustainable production of crops and increase the income of ARBs household members to strengthen ARBOs, and improve the capabilities of ARBs through the provision of institutional capability building. Moreover, the program requires preparation of ARBOs to become credit conduits and priority is given to provinces with high records in land acquisition and distribution (LAD).

Data would show that only 57% of farmers have access to credit from financing institutions while one in three ARBs in ARCs is in need of credit. Further, new ARB organizations may still not qualify under the credit assistance program of the program beneficiaries development (CAP-PBD) of DAR and LBP regular lending program and some ARB organizations still require organizational strengthening to make them credit worthy. These situations prompted the launching of APCP by pooling the resources and expertise of DA, DAR and Landbank to help ARBs access affordable credit, development assistance and marketing support.

The Agricultural Insurance Program (AIP), on the other hand, aims to enhance agricultural productivity of ARBs, mitigate agricultural losses due to pests, diseases and natural calamities, and improve access to credit. This insurance assistance covers rice and corn, high-value crops, and livestock production. It generally covers the total premium requirements of ARBs covered by agrarian reform communities connectivity economic support services (ARCCESS), borrowers in APCP and other farmer-beneficiaries.

Trainings for ARBOs as underwriters have already been conducted this July 2013 which is part of the preparations to avail the AIP. DAR Bicol Regional Director Maria Celestina M. Manlagnit-Tam, CESO III, stated that immediate completion of the requirements is urgent to set the program in motion to coincide with the onset of the cropping season of the farmers’ chosen yield.

It can be recalled that early this year, the national government allocated P1 billion for the APCP which is a joint undertaking of the Department of Agrarian Reform (DAR), Department of Agriculture (DA) and the Landbank of the Philippines (LBP), and another P1 billion for the AIP to be implemented by the (DAR) together with the Philippine Crop Insurance Corporation (PCIC).

Meanwhile, The Center for Agrarian Reform and Rural Development (CARRD) lauded the Minalabac, Mataoroc, Sagrada, San Jose, Baliuag Viejo (MASSBA) agrarian reform community (ARC) Cooperative in Camarines Sur for its micro-finance initiatives in launching a credit program in their locality.

“According to CARRD, they were so impressed with the very remarkable achievement of MASSBA ARC Coop for the savings generation that is utilized to give out loans to fellow farmers,” RD Tam related.
MASSBA ARC Cooperative was able to reach beyond 400,000 total deposits coming from the investments of its member-farmers for the savings generation project in barely three months when it started the program in April this year. “According to its records, the total amount of 497,000 was already availed through its credit or loan program,” she added.

CARRD is a non-government organization initially formed in 1987 to provide technical assistance to peasant organizations and formally established in 1989 to advocate for agrarian reform and rural development agenda. (With Reports from DARRO-5 Information Office

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