MANILA, Philippines - The government has generated roughly P370 million in savings after bidding out the reinsurance needs of several “big-ticket” state agencies, pension fund Government Service Insurance System (GSIS) said Friday.
“The public bidding forms part of the commitment of the new GSIS board and management to heed the President’s call for good governance by upholding transparency in all business transactions,” noted GSIS president and general manager Robert Vergara.
Vergara said they started the bidding process as early as the last quarter of 2010 in compliance with the Government Procurement Reform Act or RA 9184. The bidding covered the reinsurance needs of agencies National Power Corp. (Napocor), Power Sector Assets and Liabilities Management Corp. (PSALM), National Grid Corporation of the Philippines (NGCP), and Metro Rail Transit Corp. (MRTC).
“Apart from the savings generated from reduced premium, the insured agencies get improved coverage as well by having lower deductibles which allow them to claim against their insurance for losses or damages at lower participation limits," he said.
MRTC had the biggest savings of P132.8 million, followed by PSALM (P131.8 million), NGCP (P87.4 million), and Napocor (P17.4 million).
The Property Insurance Law or RA 656 requires every government, except a municipal government below first class, to insure its properties with the GSIS against any insurable risk.