An insurance claim cannot be categorized as ‘restitution’ per se, because restitution presupposes a violation of law. Darren M. De Jesus Last Thursday, the Independent Commission for Infrastructure (ICI) held a joint meeting with several government offices to discuss a whole-of-government approach to the restitution, or recovery, of public funds spent by contractors and public officers involved in the corruption-riddled flood control projects of the Department of Public Works and Highways (DPWH). Retired Supreme Court Justice Andres Reyes Jr., chairman of the ICI, correctly said, “Justice is not enough; we need restitution. A day before that, a meeting was held between DPWH Secretary Vince Dizon and Insurance Commissioner Attorney Reynaldo Regalado for the signing of a data-sharing memorandum of agreement to fast-track government claims processes against insurance companies that issued surety bonds in favor of contractors involved in “ghost projects.” As the press conferences and conversations spill over into the insurance context, the difference between insurance claims, as a form of indemnity, and restitution, as recovery due to a commission of a crime, has blurred and overlapped when, in fact, these two concepts — insurance claims and restitution — are different. Restitution, as defined under Article 104 of the Revised Penal Code, is a remedy available after a crime has been established. It forms part of the civil liability of a person convicted of an offense, requiring the offender to return what was unlawfully taken or to repair the damage caused. It is, in essence, a correction of wrongdoing, and restitution cannot exist without a wrongdoer. Insurance, including surety bonds, is a relationship that was not borne from a crime. It is based on an insurance contract, voluntarily entered into between the parties. The insurer promises to compensate the insured or beneficiary for specific losses in exchange for the payment of a premium. When an insurer pays a claim, it is not punishing anyone, nor is it correcting a moral wrong. It is fulfilling a contractual promise based on a valid, legal and binding insurance contract. This is why an insurance claim is an act of indemnity, not restitution. Indemnity seeks to restore the insured or the beneficiary to the financial position they were in before the loss occurred. It repairs; it does not accuse. It compensates; it does not condemn. In the case of the DPWH flood control projects, insurance payouts, if any, must be seen as private, contractual payments between insurer and insured or beneficiary. Unless fraud, deceit or other criminal conduct is proven, there is no “crime” to speak of. Thus, respectfully, an insurance claim cannot be categorized as “restitution” per se, because restitution presupposes a violation of law. In simpler terms, insurance is a promise kept, not a punishment imposed. It belongs to the realm of contracts, not crimes. Justice demands restitution from wrongdoers; insurance provides indemnity to the wronged. To confuse the two would not only distort legal meaning but also undermine the essential purpose of insurance, which is to provide financial protection, not penal consequences. It is from these definitions that insurance companies must properly approach the claims by issuing bonds covering the identified DPWH projects. Insurance companies are also victims in the conspiracy to defraud the government, and each claim must be reviewed carefully, yet with a sense of urgency, in order to properly indemnify the government. Source: tribune.net.ph

The Asian Development Bank (ADB) has approved a $400m policy-based loan to support reforms aimed at raising the efficiency of the Philippines' insurance industry, creating an enabling environment for broader participation in the sector, and helping stimulate stronger economic growth. The  Insurance Reform Program, Subprogram 1  supports broader financial sector development reforms in regulation and supervision, including greater intermediation of long-term credit for government infrastructure projects. It is designed to foster a more efficient, consumer-oriented, and technologically advanced insurance market that strengthens climate risk management and disaster resilience. ADB country director for the Philippines, Andrew Jeffries said that the program is a strategic investment in the Philippines’ sustainable and inclusive economic future. “By modernising the regulatory framework, we are not only strengthening the insurance industry itself—we are building a critical line of protection for the nation, mobilising long-term capital for development, and ensuring that the benefits of economic growth reach every Filipino entrepreneur and household,” he said. The new program will be implemented in three sequenced subprograms, in close partnership with the Insurance Commission. It supports comprehensive reforms—including cutting-edge digitalisation and climate finance—to enhance resilience, financial inclusion, and consumer trust. This is ADB’s first dedicated insurance reform program, building on the bank’s ongoing support to the Philippine insurance industry and capital markets development since the late 1990s. Past initiatives include the  Inclusive Finance Development Program  and the  Support to Capital Market-Generated Infrastructure Financing Program . It also complements ADB’s recent support for related reforms, such as parametric and indemnity insurance under the  Second Disaster Resilience Improvement Program , agriculture insurance under the  Climate Change Action Program , and health insurance under the  Build Universal Health Care Program . Source: www.asiainsurancereview.com

October 6, 2025, at the Independence Flagpole at Rizal Park Luneta.

Philippines Congress is likely to consider a request from the government to double the crop insurance subsidy it pays to the country's farmers to PHP8bn in 2026 so that it covers up to 4.2m farmers. According to a news report on the news portal bilyonaryo.com most of these farmers are rice growers. The news report said the Philippines agriculture secretary Francisco P Tiu Laurel Jr has urged the Congress to take up this proposal so that the number of farmers covered under the scheme goes up from the present 2.3m to 4.2m. The Philippine parliament is formally known as the Congress. Currently, the farmers are insured under the Philippine Crop Insurance Corporation (PCIC) and the rice cultivating farmers number around 1.25m. PCIC provides a maximum coverage of PHP20,000 per hectare, about a third of the estimated PHP60,000 cost of rice production. Mr Tiu Laurel said “PCIC’s current subsidy level is simply inadequate.  We need to insure more farmers at realistic levels that reflect the true cost of production, especially as climate change and market volatility continue to impact the sector.” Under the proposed 2026 national budget, PCIC’s subsidy remains at PHP4.5bn, the same level since 2022. The agriculture secretary said this limits the government’s ability to protect farmers from rising risks like typhoons. “To insure 4.2m farmers, we need about PHP8bn. That means we are short by PHP3.5bn. Of the 4.2m farmers we aim to cover, 2.2m will be rice farmers—an increase of nearly a million from the current number.” The agriculture secretary emphasised that expanding insurance coverage is a strategic investment in food security. “Crop insurance isn’t just a financial product—it’s a critical lifeline. When typhoons, droughts, or pest outbreaks hit, insured farmers can recover faster and get back to planting. Without it, many are left in debt or forced to abandon farming altogether.” Mr Tiu Laurel appealed to lawmakers to prioritise agricultural resilience in the national budget, stressing that a fully funded insurance system is important to stabilise rural incomes, sustaining productivity, and protecting the country’s food supply. Source: asiainsurancereview.com

As part of its initiative to ensure that only approved products are offered to the public, the Filippino insurance regulator, the Insurance Commission (IC), has directed all insurers, mutual benefit associations, health maintenance organisation, and pre-need companies to submit an inventory of all existing products and services. This is in line with the IC’s efforts to ensure that entities are not allowed to offer unapproved products, as strengthened by the implementation of the Financial Products and Services Consumer Protection Act. As of 2 October 2025, 131 licensed companies and associations were able to comply, while others, including two composite companies and three life insurers, failed to submit the report. Source: www.asiainsurancereview.com

The Filipino Department of Finance (DOF) has ordered all agencies, government financial institutions, and government-owned and controlled corporations under its supervision to extend much-needed aid to the victims of the recent 6.9 magnitude earthquake in Cebu and severe tropical storm Opong. DOF secretary Ralph Recto emphasized the need to mobilize ground support and faster rollout of services to the public in the aftermath of the Nat CAT natural calamities. On its part, the Insurance Commission (IC) has issued IC Circular Letter No. 2025-19 ordering all insurance companies and related entities to: Provide assistance so that policyholders can receive immediate payments for claims. Extend deadlines for filing notices of claims and submitting of supporting documents. Improve customer service. Fast track the processing of insurance claims for damaged properties, allied perils, sustained injuries and tragic loss of lives. Source: www.asiainsurancereview.com

Agriculture Secretary Francisco P. Tiu Laurel Jr. is urging Congress to double the government’s crop insurance subsidy to ₱8 billion in 2026, enough to cover up to 4.2 million farmers, most of them rice growers. Currently, 2.3 million farmers are insured under the Philippine Crop Insurance Corporation (PCIC), with rice farmers comprising 1.25 million. PCIC provides a maximum coverage of ₱20,000 per hectare, about a third of the estimated ₱60,000 cost of rice production. “PCIC’s current subsidy level is simply inadequate,” Tiu Laurel said. “We need to insure more farmers at realistic levels that reflect the true cost of production, especially as climate change and market volatility continue to impact the sector.” Under the proposed 2026 national budget, PCIC’s subsidy remains at ₱4.5 billion, the same level since 2022. Tiu Laurel said this limits the government’s ability to protect farmers from rising risks. “To insure 4.2 million farmers, we need about ₱8 billion. That means we’re short by ₱3.5 billion,” he said. “Of the 4.2 million farmers we aim to cover, 2.2 million will be rice farmers—an increase of nearly a million from the current number.” The agriculture chief emphasized that expanding insurance coverage is a strategic investment in food security. “Crop insurance isn’t just a financial product—it’s a critical lifeline,” he said. “When typhoons, droughts, or pest outbreaks hit, insured farmers can recover faster and get back to planting. Without it, many are left in debt or forced to abandon farming altogether.” Tiu Laurel appealed to lawmakers to prioritize agricultural resilience in the national budget, stressing that a fully funded insurance system is key to stabilizing rural incomes, sustaining productivity, and protecting the country’s food supply. Source: bilyonaryo.com

Beneath the waters of the South China Sea lies a silent threat — one capable of unleashing a disaster unlike anything we’ve seen before. The Manila Trench, a vast undersea fault stretching a thousand kilometers, is among the world’s least known yet most dangerous subduction zones. it may be one of the most overdue fault systems on Earth — a sleeping giant waiting to rupture. So what happens when a fault this powerful stays silent for too long? What lies beneath this geological stillness — and how close are we to a moment that could reshape an entire region? Today, let’s delve into the Dangers of the Manila Trench —examining its volatile geology, mysterious history and the looming danger that could erupt without warning.

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