THE Civil Aviation Authority of the Philipp ines (CAAP) recently completed the rebuilding of the Daniel Z. Romualdez Airports (DZR) in Tacloban City and the Roxas Airport (RXS) in Roxas City mainly from insurance proceeds from state insurer Government Service Insurance System (GSIS).
GSIS released a total of P144.17 million in insurance proceeds to compensate for the damage wrought by Typhoon Yolanda (international name Haiyan) to the domestic airports of Tacloban and Roxas in November 2013.
Under Republic Act No. 656, as amended by Presidential Decree No. 245, GSIS is mandated to insure all properties, assets, and interests of the government against any insurable risk.
CAAP, the aviation regulator of the country, is responsible for the operation of 82 airports, with 42 of them handling commercial flight operations.
It can be recalled that CAAP insured 22 of its facilities with GSIS for P9.5 billion under an Industrial All Risk Policy in 2013, less than a month before Typhoon Yolanda struck the country on November 8, 2013.
CAAP paid the annual premium of P18.97 million to GSIS. Out of this amount, the premium it specifically paid for the Tacloban Airport was only P463,633 for an insurance coverage of P232 million, while the premium paid for Roxas Airport was P272,461 for an insured amount of P136.23 billion.
This year, CAAP has included sabotage and terrorism reinsurance coverage for 69 airports, their buildings and contents against physical loss or physical damage by an act of sabotage and terrorism, such asthe September 2013 siege on Zamboanga City that affected its airport operations.