ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Search for
www.chanrobles.com
:
LETTER OF INSTRUCTIONS
PLEASE CLICK HERE FOR THE LATEST ➔ PHILIPPINE LAWS, STATUTES & CODES
|
|
|
|
|
LETTER OF INSTRUCTIONS NO. 673 |
The Commissioner of the Budget
The National Treasurer
The General Manager, Government
Service Insurance System
WHEREAS, it is necessary to protect the properties of the National Government against accidental loss which may significantly affect the ability of Departments and Agencies in fulfilling their assigned functions;
WHEREAS, cost reduction in government property insurance premiums can be attained with improved risk management;
WHEREAS, the development and implementation of a sound risk and insurance management program will contribute to the conservation of the National Government's resources from the effects of accidental loss or destruction by natural perils and hazards, at minimum expense;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby issue the following instructions:
1.
The Commissioner of the Budget, in collaboration with the National
Treasurer and the General Manager of the Government Service Insurance
System, shall conduct a study of every Department and Agency of the
National Government for purpose of developing and implementing a sound
risk and insurance management program, covering the following specific
tasks:
a.
Inventory the resources and assets of every department and agency and
exposures to accidental loss;
b. Analyze and
measure the financial risk inherent to each exposure such as fire,
earthquake, typhoon and other extraneous perils in terms of probably
frequency and severity of loss and to set up effective methods in
avoiding and controlling all exposure;
c. Evaluate
the insurance policies covering the resources and assets of the
Departments or Agencies, in terms of scope of coverage, premium rates,
adequacy of the sums insured and policy conditions;
d. Study the
advisability of establishing a sinking fund (as an immediate charge
against reserves, profit or surplus), to assume losses resulting from
risk which are not considered significant and will not unduly affect
the financial stability of the Department or Agencies concerned;
e. Establish
the basis of valuation of resources and assets in terms of book value,
sound value or replacement value which should be related to the sums
insured, of every insurance policy covering such assets and resources;
f. Recommend
policies on risk and insurance management for the guidance of the
personnel to be entrusted with this responsibility.
3. The Commissioner of the Budget is hereby authorized to contract the services of reputable professional risk management consulting firms to carry out the objectives of these Instructions.
Done in the City of Manila, this 23rd day of February, in the year of Our Lord, nineteen hundred and seventy-eight.
chanrobles virtual law library
Back to Main
Since 19.07.98.
