The city has not insured most of its buildings, equipment, and vehicles (about 79% of insurable assets). If these are damaged or destroyed by fire, earthquake, flood, or other disasters, the city will not receive any insurance payment to recover the loss. Also, the office responsible for managing property insurance is the wrong one, which may cause delays and confusion.

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Original Audit Finding Excerpt

"8. A total of ₱320,096,997.74 or 79.2% of ₱404,104,347.58 insurable physical assets of the City were not yet covered by insurance from the Government Service Insurance System (GSIS) General Insurance Fund, thus, exposing the City to the risk of not being indemnified for any damage to or loss of properties arising from fire, earthquake, storm, flood, and other force majeure contrary to Section 5 of Republic Act (R.A.) No. 656, otherwise known as the “Property Insurance Law”, dated June 16, 1951, as amended by P.D. No. 245. The AT further noted that the monitoring and processing of property insurance was undertaken by the City Treasurer’s Office (CTO) despite having a CGSO."

Source Document