COA finds only half of Philippine Coast Guard assets insured in 2023 

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Coast Guard personnel explain that they could not insure all their assets due to lack of funds

MANILA, Philippines – The Philippine Coast Guard (PCG) only had half of its properties covered by insurance by the end of 2023, therefore “exposing the subject properties to risks of non-indemnification in case of damage/loss due to fortuitous events or other causes,” said state auditors.

The findings — that only half of the PCG’s properties worth P28.557 billion were insured — were disclosed in a Commission on Audit (COA) report.

It means that as of the 2023 audit report, only 32 watercraft, five aircraft, 480 land vehicles, and 22 buildings owned by the PCG were insured. COA said that combined, these assets were worth P15.13 billion — below the P28.557 billion in assets under the PCG.

COA reminded the PCG that under the Property Insurance Law, it should be insuring its properties with money from its annual budget. 

“Comparison of the foregoing showed that properties were not adequately covered by insurance with the GSIS [Government Service Insurance System]. The O/CG-4 personnel concerned explained that they were only able to insure these properties as there were not enough funds to cover all of them,” said COA.

The breakdown of insured assets is as follows, according to the COA report, citing the PCG’s properties and Assets Report for 2023:

• Aircraft worth P1.92 billion were insured up to P1.42 billion (73%)
• Floating assets worth P21.799 billion were insured up to P12.559 billion (57.6%)
• Land transport vehicles worth P825.13 million were insured up to P968.09 million (beyond declared acquisition cost)
• Buildings owned by the agency insured for up to P186.05 million

The PCG is an agency under the Department of Transportation and is tasked with “maritime search and rescue, maritime law enforcement, maritime safety, marine environmental protection and maritime security.” – Rappler.com