The Loan Repayment Protection Plan (LRP2) provides insurance protection that guarantees payment of approved agricultural loans upon the death or total permanent disability of insured borrowers. It covers loans up to PHP500,000 with premium rates from 0.375% to 1.5% depending on loan term. Benefits pay the full loan amount upon death or disability. Claim documents must be filed within 90 days and will be settled within 30 days of receipt. Excluded risks include war, suicide, driving under influence, and illegal acts.

1. LOAN REPAYMENT PROTECTION PLAN loan including legitimate interest thereof, subject to the V. EXCLUDED RISKS
following limits:
The Philippine Crop Insurance Corporation (PCIC) Death or total permanent disability caused by any
provides Loan Repayment Protection Plan (LRP2) to Limit of Amount of Insured Loan, Required Documents of the following:
agricultural producers, fisherfolk and other agricultural and Approving Authority • War, invasion, act of foreign enemy, hostilities or
stakeholders. LRP2 is an insurance protection that warlike operations, mutiny, terrorism, riot, civil
Loan Limit Required Documents PCIC Approving commotion, strike, civil war, rebellion, revolution
guarantees the payment of the face value or the amount of (Php) Authority
the approved agricultural loans or agri-related microfinance and insurrection, and atomic fission or radioactive
or livelihood loans upon the death or total permanent ≤ 300,000 • Application and Regional Office contamination;
disability of the insured borrower. (Non-medical Health Statement • Intentionally self-inflicted injuries, suicide or any
limit) attempt thereat, while sane or insane;
I. ELIGIBILITY > 300,000 • Application and Regional Office • Vehicular accidents while driving under the influence
Any individual or group of borrowers with ages 18 to to 500,000 Health Statement of liquor or prohibited drugs;
70 years old who availed of agricultural loans is eligible for • Medical Certificate • Rendering military and paramilitary services;
> 500,000 Head Office
coverage. • Engagement in hazardous sports or occupation;
• Illegal acts of the insured;
II. PERIOD OF INSURANCE COVERAGE • Engagement in aviation other than as a passenger in
Notes:
a commercial flight;
1. Medical certificate must be from a licensed medical
• Abortion, except when pursued as a medical
• Duration - Maximum of one (1) year or less than a practitioner/physician
intervention.
year, as the term of the loan specifies. 2. Non-compliance with the required medical
• Incidents occurring before the effectivity and after
• Commencement - Date of initial loan release or the examination shall automatically limit the sum insured
the expiry of the insurance coverage as indicated in
approval of application by PCIC whichever is later. to the non-medical limit as stated above.
the Certificate of Cover.
• Termination - Will terminate on whichever is earliest
of the following dates:
Premium Rate and Premium Discount as % of Approved VI. BENEFITS AND LIMITS OF LIABILITY
1. Full payment of the loan;
Loan/Sum Insured
2. Maturity of the loan;
3. Expiry of the policy; or Discount for Group In case of death or total permanent disability of
4. Default of premium payment (For staggered Term of Loan Premium Coverage the insured, PCIC pays the principal sum or face value
payment, default is reckoned ten (10) days after (No. of Mos.) Rate No. of of the loan, provided that the said amount is actually
Discount released, including legitimate interest, if applicable.
the premium amortization due date). Members
Please see Section IV for other limits of liability.
≤3 0.375
III. COVERED RISKS 4 0.500 VII. BENEFICIARY
5 0.625
The insurance facility covers the face value of the Payment of claim shall be made to the lending
approved agricultural loans or agri-related Microfinance
6 0.750 institution/cooperative where the loan was obtained.
or Livelihood loans of agricultural producers/fisherfolk 7 0.875 15 to 25 5 The payment shall be applied to liquidate and settle the
and other agri-stakeholders or full payment of the loan 26 to 40 10 outstanding obligation of the insured borrower. Any
8 1.000 >40 15 excess shall be paid by the lending institution/cooperative
upon the death or total and permanent disability of the
borrower resulting from accident, natural causes and 9 1.125 to the primary beneficiary of the borrower. If the primary
murder or assault. beneficiary is rendered ineligible, the secondary beneficiary
10 1.250 shall be the recipient. If the beneficiary is a minor, the
IV. PRINCIPAL SUM AND PREMIUM
11 1.375 appointed trustee is the payee.
12 1.500
The amount of insurance is equal to the amount of the
approved loan of the borrower or the full amount of the Notes: Premiums are inclusive of taxes

2. VIII. APPLICATION FOR INSURANCE
• Where to file – Lending Institution, Cooperative, or
A claim shall be settled not later than thirty (30) calendar
days from the submission of complete claim documents to
the PCIC Regional Office or its underwriting agent.
LOAN REPAYMENT
PCIC Regional Office
• When to file – Before loan release XI. MISCELLANEOUS PROVISIONS PROTECTION
• Documents Required - Filled-out Application and
Health Statement Form and Medical Certifcate, if
applicable
Subject Particulars PLAN
Disappearance Disappearance per se of the
insured is not compensable.
IX. NOTICE OF CLAIM
However, if death of the insured
General Information on the
In the event of death or total permanent disability of the alleged to have disappeared is Loan Repayment Protection Plan
insured, the lending institution/cooperative/underwriting proven or established later to
agent, the immediate member of his family or the insured have occurred during the term of
himself, as the case maybe, shall file a notice of claim (NC) cover, the claim maybe given due
in writing to the PCIC Regional Office not later than forty
five (45) calendar days from the time of death or total course.
permanent disability. Voidance & The policy shall be voided and
The Notice of Claim shall at least contain the following Cancellation Clause cancelled by the PCIC upon
information: occurrence of any of the following
a) Name and address of the insured;
b) COC Number; during the effectivity of the
c) Cause of injury/death; policy, and after notice thereof to
d) Date of accident and/or death; and the insured/lending institution/
e) Name of cooperative/organization/lending cooperative:
institution. a) Conviction of a crime thus
X. SUBMISSION OF CLAIM DOCUMENT increasing the hazard insured
against;
Within ninety (90) calendar days from the death or total b) Discovery of fraud or material
permanent disability of the insured, the following claim misrepresentation; and
documents should be submitted: c) Discovery of willful, reckless
In case of Death
a) Death Certificate duly signed & sealed by the Local acts or omissions that increase
Civil Registrar; the hazard insured against.
b) Birth Certificate or any legally valid proof of age of DEPARTMENT OF AGRICULTURE
the deceased borrower;
c) Claimant Statement Form to be accomplished by
In case of cancellation, the insured
is not entitled to any premium
PHILIPPINE
the Manager of the concerned lending institution/
cooperative; refund for the unexpired term. CROP INSURANCE
d) Medical Certificate;
e) Police report, if the cause of death is accident or
Civil Code 1250
Waiver Clause
It is hereby declared and agreed
that the provision of Article 1250
CORPORATION
violent means; and
f ) Other documents such as sworn affidavit of two (2) of the Civil Code of the Philippines “Sa Paglaban sa Kahirapan at Gutom,
disinterested persons as may be required by PCIC. (Republic Act No. 386) which
reads: “In case an extraordinary
Crop Insurance, Katulong sa Pagbangon.”
In case of Total Permanent Disability inflation or deflation of the
a) Medical Certificate by the attending physician currency stipulated should
and certified machine copy of complete medical/ 7th Floor, Building A, NIA Complex, EDSA, Diliman,
hospital records; supervene, the value of the Quezon City, Philippines
b) Claimant Statement Form to be accomplished by currency at the time of the
the Manager of the concerned lending institution/ establishment of the obligation
cooperative; TeleFax (02) 441-1324
shall be the basis of payment….”
c) Police report, if the cause of disability is accident or Email rmg@pcic.gov.ph
shall not apply in determining
violent means; and
d) Other documents as may be required by PCIC the extent of liability under the
provisions of this policy.