By: Ben R. Rosario
The Commission on Audit has disclosed that at least 14 airports in the country are not insured for terrorism, sabotage, and other fortuitous events.
The CoA, in its 2016 annual audit report for the Civil Aviation Authority of the Philippines, revealed that the 14 airports are not included in the list of 68 others that have a RP4.95-billion insurance cover and a P9,900,000 premium.
“The Authority failed to complete the inventory of physical assets, thus, as a consequence, not all insurable risks were covered by the General Insurance Fund of the GSIS, contrary to Republic Act No. 656, known as the “Property Insurance Law” as amended by Presidential Decree No. 245 dated July 13, 1973, exposing various property to unnecessary risk of not being indemnified for any damage or loss to any fortuitous events such as fire, earthquake, typhoon, and or flood,” the audit report stated.
State auditors stressed that under RA 656, only municipalities below first class are exempted from insuring its properties.
An examination of the insurance policies of CAAP indicated that there are various properties that have not been insured with the Government Service Insurance System, thus, violating RA 656.
