Repair and rehabilitation of public schools damaged by typhoon covered under National Indemnity Insurance program

BY ONLINE BALITA NEWS

The Bureau of the Treasury (BTr) will be filing a claim under the National Indemnity Insurance Program (NIIP) due to typhoon Carina for the damages sustained by 45 public schools across eight regions.

The NIIP, which commenced on January 1, 2024, provides comprehensive cover to government assets against fire, lightning, typhoons, floods, earthquakes, and volcanic eruptions.

For its pilot run, the BTr secured coverage for 132,862 school buildings nationwide, with a total insured value of PhP 843.11 billion.

With costs of damages tallying to at least PhP 308.5 million for public schools, the BTr, the Department of Education (DepEd), and the Government Service Insurance System (GSIS) are actively coordinating the filing of insurance claims under the NIIP.

Once a payout is confirmed, the DepEd will be able to utilize the funds for the repair and reconstruction of the said schools.

“I commend the Bureau of the Treasury for its proactive steps in implementing the National Indemnity Insurance Program. Protecting our national assets is crucial for ensuring the economic security of our people. Damaged school buildings pose a significant threat to this security, as they are the very places where we nurture the potential of our nation’s greatest treasure—our students. Poor school facilities negatively impact both teachers and students, leading to lower human capital development, reduced economic productivity, and persistent poverty. Thus, we must prioritize investing in resilient school buildings to secure a better future for our children and our country,” Finance Secretary Ralph G. Recto said.

“The implementation of the program underscores the commitment of the Bureau and the Department of Finance to ensure the nation’s financial resilience against disasters. We are actively coordinating with both DepEd and GSIS to ensure the timely assessment and payout of the program,” National Treasurer Sharon P. Almanza said.

The program is part of the country’s Disaster Risk Finance strategy, which aims to protect the government’s fiscal health, provide immediate liquidity post-disaster, and reduce the impact of disasters on the most vulnerable.

Other instruments under this strategy are the Quick Response Fund, the Local and National Disaster Risk Reduction and Management Fund, and the Disaster Stand-by Loan facilities secured by the Department of Finance (DOF).