MANILA, Philippines - A lawmaker has proposed to amend the Property Insurance Law to include municipalities below first class in the General Insurance Fund.
Cagayan Rep. Randolph Ting filed House Bill 5273 or "An act mandating the insurance of all government properties with the Government Insurance Fund, amending for the purpose Republic Act No. 656, as amended, otherwise known as the Property Insurance Law."
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The current law exempts municipal governments below first class from insuring properties with the General Insurance Fund.
The Cagayan solon noted that at least 19 typhoons enter the Philippine area of responsibility and several of them are destructive.
"When Typhoon Yolanda struck our country in November 2013, many government infrastructure in the path of the typhoon were destroyed. Many of these infrastructure were owned by the different government offices and various municipalities," Ting said.
Municipal governments of areas affected by typhoon Yolanda had to appeal for financial assistance in able to repair damaged government properties while the national government had their properties insured.
"Local government units (LGUs), particularly the municipalities, have to rely on appropriations from the national government, financial assistance from donors, and their already stretched budgets to be able to finance the repair, rehabilitation, or re-construction of their damaged properties," Ting explained.
The proposed measure is now pending with the House of Representatives committee on banks and financial intermediaries.