MANILA – Provinces ravaged by super typhoon Rolly could benefit from the country’s parametric insurance policy, which grants immediate payout for post-disaster recovery, Sorsogon Governor Chiz Escudero said Friday.

Speaking to ANC’s “Headstart,” Escudero said the government allocated P2 billion fund in the 2019 national budget for the program, which covers 25 disaster-prone provinces in the country’s eastern seaboard.

“This would have been a good source of funds especially given the fact that the notational government’s funds are depleted given our COVID-19 pandemic fight,” he said.

The parametric insurance policy, which has a maximum coverage of P20 billion, provides rapid payouts to select provinces.

They are made when pre-defined parametric triggers are met such as the typhoon’s strength, even without an adjuster inspecting the amount of damage, Escudero said.

“It’s based on the strength of the typhoon signal… Full payout will be given if you are hit by signal number 4 or 5,” he said, adding it has to be confirmed by a foreign weather forecasting agency.

The provinces included in the program are Albay, Aurora, Batanes, Cagayan, Camarines Norte, Camarines Sur, Catanduanes, Cebu, Davao del Sur, Davao Oriental, Dinagat Islands, Eastern Samar, Ilocos Norte, Ilocos Sur, Isabela, Laguna, Leyte, Northern Samar, Pampanga, Quezon, Rizal, Sorsogon, Surigao del Norte, Surigao del Sur and Zambales.

Escudero, who championed the program when he was a senator, said he was still verifying if the national government had placed on international market a parametric insurance policy that covers this year.

He said the Bureau of Treasury, which serves as the designated policyholder, should retain 10 percent if there’s a payout made in order for the insurance to be automatically reinstated.

“The intention of this originally was to repair the damaged school buildings nationwide whenever a typhoon would hit. That’s why DepEd (Department of Education) is the beneficiary on the part of national govt. On the part of local government, it’s the province,” Escudero said.

He said his province was yet to receive about P860 million payout when it was hit by Typhoon Tisoy in December 2019.

Rolly, the world's strongest storm this year, lashed parts of southern Luzon Sunday, leaving 20 people dead and dozens injured. It also cut a swathe of destruction in Bicol Region, with damage to infrastructure pegged at P5.8 billion

• Philippines braces for another tropical cyclone, after typhoon Rolly kills 20
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