The Philippines’ Government Service Insurance System (GSIS) is currently working to ensure government assets in calamity-prone coastal areas. The state-owned institution will be accepting bids for this ₱2-billion project, reported INQUIRER.net.
GSIS chair and acting president Rolando L. Macasaet and National Treasurer Rosalia V. de Leon signed a memorandum of agreement (MOA) for this insurance program last month. The agreement seeks to cover government assets in 25 provinces located in the country’s coastlines for ₱1 trillion.
Assets that will be covered include roads and bridges which are maintained by the Department of Public Works and Highways (DPWH). Schools handled by the Department of Education will also be included in this indemnity coverage.
According to the GSIS website, this policy will provide “immediate cash” in case disasters. This fund will be used to reestablish operations of these facilities. The catastrophe risk insurance will cover disasters such as storm surges, typhoons, volcanic eruptions, earthquakes, and fires.
In line with this initiative, Treasurer de Leon revealed that the Treasury has allocated ₱2 billion for the coverage. This protects “strategically important” facilities including bridges, hospitals, schools, and roads.
de Leon clarified that the money was premium allocated to the institution. However, she also noted that such insurance will take more time to get payouts. Moreover, it requires adjustments based on losses and damages, as well as the transfer of funds to reinsurers.
GSIS is the government-owned controlled social insurance company that offers benefit schemes for government workers and assets. The institution is currently accepting buds from reinsurers that want to participate in the completion of the ₱2 billion programs.
The Philippines often suffers from various natural disasters leaving thousands of lives affected and lost, as well as millions in damage to property, private and public alike.