Section 5Sec./Art. 5

Section 5 of the Presidential Decree No. 1467, as amended, is hereby further amended, to read as follows:

"Section 5. Rate of Premium and its Sharing.

The rate of premium, as well as the allocated sharing thereof by the farmers, the lending institutions, the Government of the Republic of the Philippines (herein called the Government) and other parties, shall be determined by the Board of Directors of the Corporation: Provided, That the share of the Government in the premium cost in the form of premium subsidy, shall be limited to subsistence farmers: Provided, however, That each of these subsistence farmers is cultivating not more than seven (7) hectares by themselves or with the help of the labor of the members of their households or hired labor, the premium rate and sharing to be determined by the Board of Directors subject to approval by the President of the Philippines: Provided, further, That the premium share of the subsistence farmer shall be reasonably affordable by him: Provided, furthermore, That the Government shall share in the premium cost only in insurance coverage against unforeseen and unavoidable risks such as, but not limited to typhoons, droughts, outbreaks of pest and diseases: Provided, finally, That premium subsidy and/or insurance benefits shall upon the accumulation of surplus funds, be increased to such amount as may be determined by the Board taking into consideration that the Corporation has been established not only for profit but mainly to help the insured in their direct hours of need."