DA-PCIC eases conditions for paying ASF-affected insured hog raisers

The Department of Agriculture’s (DA) Philippine Crop Insurance Corporation (PCIC) has relaxed conditions for paying hog raisers’ losses under its insurance program for hogs.

In a statement, the DA said the relaxation of conditions is “in support of the Duterte government’s initiative to revitalize hog production amid the African Swine Fever (ASF) epidemic.”

The Agriculture department said that the PCIC board of directors approved the DA proposal to pay losses resulting from government-ordered culling or slaughter of insured hogs, and raise the payable amount up to 100% of the insurance cover or the total sum insured. 

Standard insurance industry policy does not include government-ordered disposal of stocks when epidemics occur among the compensable risks, while indemnity payment are normally pegged at a maximum of 60% of total sum insured (TSI), according to the DA.

“Bold policy actions are needed in periods of adversity like the hog industry is in now, and we thank the PCIC for this quick response that sends the message the DA and its family of agencies are here to help our stakeholders, particularly the hog industry, build resilience and sustainability,” said Agriculture Secretary William Dar

The DA noted the move is expected to help encourage the raising of over 10 million head of swine among commercial and backyard raisers.

The stocks to be insured will be a mix of fatteners and breeders, including grandparent stock, among the former, and fatteners and breeders, among the latter.

Backyard hog raisers currently receive free insurance, provided they are listed in the Registry System for Basic Sectors in Agriculture (RSBSA), the country’s database of bona fide subsistence farmers and fisherfolk.  

But they will be covered by the relaxed provision on indemnity payment and culling or emergency slaughter. 

Moreover, the board directed the PCIC to increase the number of backyard hog raisers to be provided insurance coverage, the DA said.

These enhanced insurance policy features for hogs will remain in place until such time that the industry shall have stabilized or a vaccine or other veterinary solutions will have been developed for ASF, it said.

Consistent with the DA policy on biosafety, the PCIC will require commercial and backyard raisers to adhere to prescribed biosafety protocols.

These include cleaning, disinfecting and training in biosafety measures as contained in the DA Administrative Order No. 6, issued on February 6, 2021, entitled “Guidelines on the Implementation of the Recovery, Rehabilitation and Repopulation Assistance Program for ASF-affected and Non-ASF Affected Areas.”

The PCIC is the sole agricultural insurance firm in the country. — Ted Cordero/BM, GMA News