Memorandum Order No. 366 (1973)
Granting the National Power Corporation partial exemption from the coverage of Republic Act No. 656
MALACAÑAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
[ MEMORANDUM ORDER NO. 366, July 25, 1973 ]
GRANTING THE NATIONAL POWER CORPORATION PARTIAL EXEMPTION FROM THE COVERAGE OF REPUBLIC ACT NO. 656.
Republic Act No. 656, now being implemented under Memorandum Circular No. 634 provides that the government, including boards or enterprises owned or controlled by the government, except municipal governments below first class, shall insure all their properties and assets with the Property Insurance Fund established under the said law.
In view of the built-in protection in the technical designs of the structures and installations of the National Power Corporation against calamities, i.e. fire, earthquake, and storms, insurance for such facilities is superfluous and shall therefore deplete unnecessarily its resources programmed for the power development of the country. The National Power Corporation is hereby partially exempted from the provision of R.A. 656. This partial exemption shall cover only such structures and installations which have built-in protection designs against calamities. Only in cases where NPC facilities do not carry built-in protection as in office buildings, vehicular equipment and aircraft, is NPC compliance deemed necessary.
By authority of the President:
(SGD.) ALEJANDRO MELCHOR
Executive Secretary
Manila, July 25, 1973