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GSIS pays Php149 M indemnity to Yolanda-hit gov’t properties
GSIS pays Php149 M indemnity to Yolanda-hit gov’t properties

Date Posted: October 24, 2014

State pension fund Government Service Insurance System (GSIS) recently released the total amount of nearly Php149 million to indemnify two government agencies for the damages to their properties wrought by typhoon Yolanda.

GSIS paid the Civil Aviation Authority of the Philippines (CAAP) Php144.17 million in insurance proceeds to compensate for the damages to the domestic airports of Tacloban and Roxas.

It similarly indemnified the Department of Trade and Industry’s (DTI) Regional Office in Tacloban in the amount of Php4.35 million for the destruction of its office building after Yolanda devastated Eastern Samar.

“Minimizing the impact of financial or asset loss to government agencies caused by an unforeseen calamity or event is the System’s contribution to nation-building,” President and General Manager Robert Vergara said.

Vergara explained that CAAP, the agency responsible for the operation of all domestic airports in the country, actually insured 22 of its facilities with GSIS for Php9.5 billion under the Industrial All Risk Policy.

CAAP paid the annual premium of Php18.97 million to GSIS. Out of this amount, the premium it specifically paid for the Tacloban Airport was only Php463,633 for an insurance of Php232 million. While the premium paid for the Roxas Airport was Php272,461 for an insured amount of Php136,230,538.

“It was providential that CAAP insured its properties with GSIS less than a month before Yolanda struck the Tacloban and Roxas airports,” Vergara said.

DTI-Tacloban has been religiously securing insurance cover (Fire with Allied Perils-Typhoon, Flood, Earthquake) from GSIS every year since 2010. It pays a little more than Php66,000 in annual insurance premium in exchange for an assurance from GSIS that it will shoulder the burden of an uncertain loss in the future.

GSIS is coordinating with other government agencies hit by Yolanda to assist them in claiming compensation for the damages sustained by their properties. In 2013, the System settled the claims of the NFA offices in Borongan and Leyte, the city hall building in Bogo, Cebu, the Eastern Samar State University, the sports complex in Bantayan, Cebu, and the office of the Mayor in Bogo, Cebu.

“The need to insure government-owned buildings and infrastructure with GSIS has become more imperative since typhoons and other calamities can just strike anywhere… this is the new normal,” Vergara added.

Under Republic Act No. 656, as amended by Presidential Decree No. 245, GSIS is mandated to insure all properties, assets, and interests of the government against any insurable risk.