Republic of the Philippines
House of Representatives
Quezon City, AMletes Movil

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 8257

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE FOR
CONSTRUCTION WORKERS

EXPLANATORY NOTE

Article XIII, Section 3 of the 1987 Constitution embodies our country’s
commitment to protecting the rights and welfare of our workers, providing
that "The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment opportunities for
all." The extensive Labor Code of the Philippines or Presidential Decree No.
442, as amended, also provides for the institutionalization of protection to
labor and employment.

Among the most productive laborers in the country are workers from
the construction industry. In particular, the Philippines employs more than
two million construction workers.! Due to the manual labor and nature of
this industry, the workers are constantly exposed to dangerous working
environments and are at high risks of musculoskeletal disorders (MSDs).
MSDs comprise of 30% of all recorded occupational injuries of construction
workers in the country.?

Despite having standards to ensure worker safety, a high number of
cases of injuries are still reported annually. Consequently, the injuries

? Philippine Statistics Authority - National Statistics Coordination Board. (October 2011).
Statistics: Labor and Employment. Retrieved from
hitp:/ /www.nscb.gov.ph/secstat/d labor.asp.

2 Bureau of Labor and Employment Statistics. (2011). PSIC F: CONSTRUCTION. Retrieved
from http: // www. bles.dole.gov.ph/ PUBLICATIONS /Industry%20Yearbook /Part%20A%20-

%200ccupational’%20Injuries.htm!



obtained by the construction workers remain heavily unreported.3 While the
Department of Labor and Employment (DOLE) have supervised many
legitimate construction agencies, it is imperative that construction workers
and their families are not denied opportunities to better safety protocols and
accident and life insurance.

When unfortunate circumstances like accidents happen, the
construction workers and their families are often just paid a small amount
of money by their employers that do not capture the sacrifices and dignity of
labor. Many of these construction workers are denied better opportunities to
livelihood because of days lost for being confined in hospitals or worse,
death due to work-related accidents.

This bill seeks to ensure that construction workers and their families
are justly compensated with dignity and respect for their sacrifices in
nation-building. This legislation shall provide group personal accident
insurance coverage for construction workers. The insurance coverage
shall compensate a reasonable amount for an accident that will cause
the disability or the death of the worker. The premiums paid to the
insurance company shall be shouldered by the employer and shall not be
deducted from the wages of the construction workers, and will be valid in
the duration of the project or contract. This bill also serves as a counterpart
legislation for Senate Bill No. 741 filed by Senator Sherwin Gatchalian.

In view of the foregoing, the immediate passage of this bill is earnestly

sought.

ALFRED VARGAS

% Domingo, James Renier T.; De Pano, Ma. Theresa S.; Ecat, Dominic Aily G.; Sanchez,
Nicole Ann D.G.; Custodio, Benette P. (2015). “Risk Assessment on Filipino construction
workers. University of the Philippines Diliman, Quezon City 1101, Philippines


Republic of the Philippines
Aouse of Representatives
Quezon Gity, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

\
House Bill No. e252

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE FOR
CONSTRUCTION WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Construction
Workers Insurance Act."

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the
State to ensure the safety and promote the welfare of construction workers
because of the hazardous and dangerous work environment. To this end, it
is the intent of this Act to require employers of construction workers to
provide for mandatory group personal accident insurance coverage to
guaranty the quick and efficient delivery of indemnity to injured workers at
a reasonable cost to the employers.

SECTION 3. Definition of Terms. - The following terms, for the purposes of
this Act, shall be defined as follows:

a) The term Construction covers:

i. Building, including excavation and the construction, structural
alteration, renovation, repair, maintenance (including cleaning
and painting) and demolition of all types of buildings or
structures; and

ii. The erection and dismantling of prefabricated buildings and
structures, as well as manufacturing of prefabricated elements
on the construction site.


b) Construction worker refers to a person engaged in construction that is
exposed to a considerable risk, danger or hazard while in the line of
work.

c) Employer refers to a contractor or a subcontractor that employs at
least ten (10) construction workers to perform a service for hire and
includes a corporation, partnership, limited liability company,
association, group of persons, state, city, municipality, school district,
or any government subdivision;

d) Construction site refers to any place or location where a building or a
structure is being constructed;

e) Insurance refers to a contract wherein one party undertakes to
compensate the other for an injury relating to a particular subject as a
result of the occurrence of designated hazards;

f) Group Personal Accident Insurance refers to a type of insurance
coverage offered to a group of people, which provides benefit to the
individual or beneficiaries if the covered individual is permanently
disabled or dies during the defined insurance covered period resulting
from accidental death, disability and injuries;

g) Insurance company is a corporation, duly accredited by the Insurance
Commission that provides for the insurance coverage of the
construction worker upon payment by the employer of the required
insurance premium.

SECTION 4. Mandatory Insurance Coverage. - All construction workers
employed in a construction project or site shall be provided a group personal
accident insurance coverage by the employer. The duration of the insurance
shall start from the commencement of the service of the construction worker
until the completion of the construction project or upon the termination of
the employment contract.

Nothing i

this Act shall be construed to diminish or reduce any benefit and

other privileges which the worker may be entitled under existing laws,
decrees, executive orders, company policy or practice or any agreement or
contract between the employer and employees.

SECTION 5. Cost of Insurance. - The premiums to be paid to the
insurance company shall be completely paid for by the employer and shall
not be deducted from the wages of the construction workers.

SECTION 6. Minimum Insurance Coverage. ~ The group personal accident
insurance shall provide for financial assistance including, but not limited to,
the following:

a) For natural death, the amount of Seventy-Five Thousand Pesos


(P75,000.00);

b) For accidental death, the amount of One Hundred Thousand Pesos
(P100,000.00);

c) For death in the line of work, the amount of One Hundred Fifty
Thousand Pesos (P150,000.00);

d) For loss of both hands, the amount of Fifty Thousand Pesos
(P50,000.00);

e) For loss of both feet, the amount of Fifty Thousand Pesos

(P50,000.00);

f) For loss of sight of both eyes, the amount of Fifty Thousand Pesos
(P50,000.00);

For loss of one hand and one foot, the amount of Fifty Thousand Pesos
(P50,000.00);

8)

h) For loss of one hand and sight of one eye, the amount of Fifty
Thousand Pesos (P50,000.00);

For loss of one foot and sight of one eye, the amount of Fifty Thousand
pesos (P50,000.00);

j) For loss of one hand or one foot, the amount of Twenty-Five Thousand
Pesos (P25,000.00); and

k)

For loss of sight of one eye, the amount of Twenty-Five Thousand
Pesos (P25,000.00).

SECTION 7. Health Insurance. - In addition to the compensation that
shall accrue to the worker in the preceding section, every construction
worker shall likewise be entitled to receive fair and prompt medical benefits
in cases where the illness is directly attributable to or was developed in the
course of employment. This is meant to cover loss of wages due to workplace
exposure.

SECTION 8. Limitations. - No compensation shall be given to the
construction worker or his dependents when the injury, illness, disability or
death was due to any of the following:

a) his intoxication;
b) his willful intention to injure or kill himself or another; or

c) his gross negligence.


SECTION 9. Penalties. — Any person, partnership or corporation who
violates any provision of this Act shall, upon conviction, suffer the following
penalties:

a) For the first violation, a fine of not less than Two Hundred Thousand
Pesos (P200,000.00) but not more than Five hundred thousand pesos
(P500,000.00); and

b) For any subsequent violation, a fine of not less than Four Hundred
Thousand Pesos (P400,000.00) but not more than One Million Pesos
(P1,000,000.00).

If the offender is a corporation, organization or any similar entity, the
officials thereof directly involved in the violation shall be liable

If the offender is an alien or foreigner, he shall be deported immediately
upon service of sentence without further proceedings.

Upon filing of the appropriate complaint or information, the Secretary of
Labor and Employment shall request the appropriate local government unit
to cancel or revoke the business permit, permit to operate and other similar
privileges granted to any business entity or person that fails to abide by or
violates the provisions of this Act.

SECTION 10. Implementing Rules and Regulations. ~ Within ninety (90)
days from the effectivity of this Act, the Secretary of Labor and Employment
shall promulgate the implementing rules and regulations as may be
necessary to ensure the efficient and effective implementation of this Act.

SECTION 11. Separability Clause. - Should any part of this Act be
declared unconstitutional, the rest of the provisions of this Act shall
continue to be in effect and subsisting.

SECTION 12. Repealing Clause. - The provisions of other laws, decrees,
executive orders, rules and regulations inconsistent with this Act are hereby
repealed, amended, or modified accordingly.

SECTION 13. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,