The Government Service Insurance System (GSIS) will insure and protect government assets in coastal areas facing the Pacific Ocean that are vulnerable to calamities like typhoons.
Rolando L. Macasaet, GSIS chair and acting president, and National Treasurer Rosalia V. de Leon in November signed a memo of agreement for the indemnity insurance program which would insure government assets in 25 provinces in the eastern part of the country for P1 trillion.
Among the assets are roads and bridges being maintained by the Department of Public Works and Highways and schools under the Department of Education.
On its website, the GSIS said “catastrophe risk insurance provides immediate cash” for use to restore operations after disasters like storm surges, volcanic eruptions, storms, quakes and fires.
Last Monday, Dec. 2, De Leon told reporters that the Treasury has a P2-billion allocation for the insurance for “strategically important” assets like schools, hospitals, roads and bridges.
The P2 billion, she said, was premium allocated to the Treasury.
Indemnity insurance takes more time unlike other coverage which would be quick-disbursing and give immediate payouts after loss.
Indemnity insurance required adjustments based on losses and the transfer of these to reinsurers, De Leon said.
On Dec. 4-11 the GSIS would accept bids from reinsurers which would want to take part in the P2-billion national indemnity insurance program.
Insurance contracts are good for one year—Dec. 19, 2019 to Dec. 19, 2020.