ONLY 32 percent or P221.585 million out of the P693.04 million insurable assets of the Sugar Regulatory Administration (SRA) are protected under the General Insurance Fund (GIF) of the Government Service Insurance System (GSIS), the Commission on Audit has revealed.
Government auditors said the SRA’s failure to secure the P471.46 million agency assets does not only expose it to zero recovery or indemnification in the event of loss or damage but is likewise contrary to RA 656 or the Property Insurance Law.
“SRA would not be indemnified/compensated in case of damage to or loss of not insured properties, in case of fortuitous event or force majeure or casualty,” the audit team pointed out.
Based on the list submitted by the SRA’s Property and Procurement Section (PPS), only P185 million worth of “building, improvements, and various contents” were insured with the GIF together with 30 motor vehicles with a combined value of P36.586 million.
