JUST over half of the Philippine Coast Guard’s (PCG) P28.557 billion properties are covered by insurance as of yearend 2023, exposing the agency to possible non-recovery of value in the event of loss or damage, the Commission on Audit revealed.
In its 2023 audit report, the COA disclosed that only 32 watercraft, five aircraft, 480 land vehicles, and 22 buildings owned by the PCG are covered by insurance packages.
In all, their combined value was placed at P15.13 billion, way short of the P28.557 billion listed assets of the maritime agency.
“The PCG’s properties were not adequately covered by insurance with the General Insurance Fund of the Government Service Insurance System (GSIS), thereby exposing the subject properties to risks of non-indemnification in case of damage/loss due to fortuitous events or other causes,” the audit team warned.
It reminded the PCG management that under the Property Insurance Law (RA 656), it is required to insure its properties against any potential risk with funding appropriated in its annual budget.
However, based on the PCG Properties and Assets Report for 2023 prepared by the Deputy Chief of Coast Guard Staff for Logistics, aircraft worth P1.92 billion were insured up to P1.42 billion (73 percent coverage).
Floating assets valued at P21.799 billion are insured for only P12.559 billion (57.6 percent).
On the other hand, land transport vehicles worth P825.13 million are fully insured for up to P968.09 million, exceeding their declared acquisition cost.
Structures owned by the agency only have P186.05 million in insurance.
Auditors said the total insurable assets of PCG including communication equipment, disaster response and rescue equipment, and military, police and security equipment, among others, are assessed at P28.557 billion.
“Comparison of the foregoing showed that properties were not adequately covered by insurance with the GSIS. The O/CG-4 personnel concerned explained that they were only able to insure these properties as there were not enough funds to cover all of them,” auditors said.