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Municipalities fall behind in insuring government properties


Less than half of local government properties were insured with the Government Service Insurance System (GSIS) as of 31 December 2022, according to the agency.

While first-class municipalities are mandated to insure their properties, not all of them are fully compliant, reported Rappler.com. The GSIS observed that at least 9% of first-class cities and 28.18% of first-class municipalities had not secured insurance for their properties.


The GSIS reported that merely 31.69% of 2nd- to 6th-class municipalities had opted to insure their properties.


This was revealed during a Senate committee deliberation on 1 August 2023, on a Bill that seeks to require local governments to insure all of their buildings and physical structures. At present, the Property Insurance Law requires every level of government, except a municipal government below first class, to insure its properties.


In the Bill’s explanatory note, Senator JV Ejercito highlighted the vulnerability of the Philippines to natural disasters. Citing a report from the Asian Centre for Flood Control, he said eight of the world’s 10 most disaster-prone cities were in the country.


On average, 20 typhoons hit the Philippines every year, according to the weather bureau.



Source: asiainsurancereview.com

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