TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
s. no.1227
m
><©ffitP of tl)f i-laip
25 AUG 20 P3 37
RECEIVED BY:
Introduced by Senator Raffy T. Tulfo
AN ACT
MANDATING HIGHER ACCIDENT AND LIFE INSURANCE COVERAGE FOR 
CONSTRUCTION WORKERS AND HOLDING CONTRACTORS LIABLE FOR 
WORKPLACE ACCIDENTS
EXPLANATORY NOTE
The construction industry plays a vital role in the economic growth and 
development of our country, providing employment opportunities to millions of workers. 
However, It is an unfortunate reality that construction workers face numerous hazards 
and dangers in their line of work, resulting in accidents. Injuries, and even fatalities. It is 
the duty of the State to prioritize the safety and welfare of these workers, ensuring that 
they are adequately protected and compensated for the risks they undertake while 
contributing to the nation's progress.
This proposed bill, titled the "Higher Insurance Coverage and Contractor Liability 
for Construction Workers Act," aims to address the pressing concerns surrounding the 
well-being and protection of construction workers by introducing significant changes to 
their insurance coverage and holding contractors accountable for workplace accidents.
One of the key features of this bill is the mandate for higher accident and life 
insurance coverage for construction workers. The current coverage amounts offered by 
insurance policies fall short in providing sufficient financial support to workers and their 
families in the event of an accident, disability, or even death. This bill proposes to increase 
the insurance coverage significantly, ensuring that affected workers and their dependents


receive adequate compensation to alleviate the financial burden resulting from workplace 
accidents.
By elevating the insurance coverage amounts, we demonstrate our commitment 
to upholding the dignity and rights of construction workers. This measure seeks to 
enhance their sense of security and peace of mind, knowing that their well-being is 
prioritized and protected by the State.
Furthermore, this bill aims to address the issue of contractor accountability for 
workplace accidents. Presently, contractors are not always held liable for accidents that 
occur on their construction sites, resulting in a lack of incentive to maintain the highest 
safety standards. To rectify this, the proposed legislation establishes strict liability for 
contractors, making them directly responsible for providing immediate assistance, 
including medical attention, and financial compensation to injured workers or their 
families in case of death. Additionally, to deter negligence and promote responsible 
conduct, contractors who violate the mandatory insurance coverage and liability 
provisions will face substantial fines and penalties.
To ensure effective enforcement, this bill proposes blacklisting and barring 
contractors from engaging in any construction-related projects in the Philippines for a 
substantial period in cases of repeated violations. This serves as a strong deterrent 
against negligence and disregard for workers' safety.
In conclusion, the passage of the "Higher Insurance Coverage and Contractor 
Liability for Construction Workers Act" is of utmost importance as it addresses the critical 
issues of ensuring adequate protection and compensation for construction workers. By 
increasing insurance coverage and imposing stricter penalties on contractors, we 
safeguard the welfare of our workforce, create a culture of accountability in the 
construction industry, and affirm our commitment to promoting social justice and worker 
welfare.
I earnestly seek the support and cooperation of our esteemed colleagues in the 
Senate to enact this crucial piece of legislation, which embodies our vision for a safer and 
fairer environment for the workers who build the foundations of our nation's progress.


In view of the foregoing, immediate approval of this measure is earnestly sought.
RAFFY T. TULFO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No. 1227
v i-/^OUicr of U)f ^ruTfarp
25 AUG 20 P3 -37
RECEIVED BV;
Introduced by Senator Raffy T. Tulfo
AN ACT
MANDATING HIGHER ACCIDENT AND LIFE INSURANCE COVERAGE FOR 
CONSTRUCTION WORKERS AND HOLDING CONTRACTORS LIABLE FOR 
WORKPLACE ACCIDENTS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress Assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Construction Workers
2 
Welfare and Safety Act".
3 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
4 
ensure the safety and promote the welfare of construction workers because of the
5 
hazardous and dangerous work environment. To this end, it is the intent of this Act to
6 
require employers, particularly contractors, of construction workers to provide for higher
7 
mandatory group personal accident insurance coverage and hold them liable for
8 
workplace accidents to guarantee the quick and efficient delivery of indemnity to injured
9 
workers at a reasonable cost to the employers.
10 
Sec. 3. Definition of Terms. - The following terms, for the purposes of this Act,
11 
shall be defined as follows:
12 
a) The term Construction covers:
13 
i. Building, including excavation and the construction, structural alteration, renovation,
14 
repair, maintenance (including cleaning and painting) and demolition of all types of
15 
buildings or structures; and


1
2 
ii. The erection and dismantling of prefabricated buildings and structures, as well as
3 
manufacturing of prefabricated elements on the construction site.
4 
b) Construction worker - refers to a person engaged in construction that is exposed to
5 
considerable risk, danger, or hazard while in the line of work.
6 
c) Contractor - refers to any entity, individual, or company contracted to undertake a
7 
construction project or provide construction services for hire and includes corporations,
8 
partnerships, limited liability companies, associations, groups of persons, state, city,
9 
municipality, school district, or any government subdivision;
10 
d) Construction Site - refers to any place or location where a building or a structure is
11 
being constructed;
12 
e) Insurance - refers to a contract wherein one party undertakes to compensate the other
13 
for an injury relating to a particular subject as a result of the occurrence of designated
14 
hazards;
15 
f) Group Personal Accident Insurance - refers to a type of insurance coverage offered to
16 
a group of people, which provides benefit to the individual or beneficiaries if the covered
17 
individual is permanently disabled or dies during the defined Insurance covered period
18 
resulting from accidental death, disability, and injuries;
19 
g) Insurance Company - a corporation, duly accredited by the Insurance Commission,
20 
that provides for the insurance coverage of the construction worker upon payment by the
21 
employer of the required insurance premium.
22 
Sec. 4. Mandatory Insurance Coverage. - All construction workers employed in a
23 
construction project or site shall be provided a group personal accident insurance
24 
coverage by the employer, particularly contractors. The duration of the insurance shall
25 
start from the commencement of the service of the construction worker until the
26 
completion of the construction project or upon the termination of the employment
27 
contract.
28 
The Insurance coverage mandated by this Act shall be higher and shall provide for
29 
financial assistance, including, but not limited to, the following:
30 
a) For natural death, the amount of One hundred fifty thousand pesos (P150,000.00);


1 
b) For accidental death, the amount of Two hundred fifty thousand pesos (P250,000.00);
2 
c) For death in the line of work, the amount of Three hundred fifty thousand pesos
3 
(P350,000.00);
4 
d) For loss of both hands, the amount of One hundred twenty-five thousand pesos
5 
(P125,000.00);
6 
e) For loss of both feet, the amount of One hundred twenty-five thousand pesos
7 
(P125,000.00);
8 
f) For the loss of sight of both eyes, the amount of One hundred twenty-five thousand
9 
pesos (P125,000.00);
10 
g) For the loss of one hand and one foot, the amount of One hundred twenty-five
11 
thousand pesos (P125,000.00);
12 
h) For the loss of one hand and the sight of one eye, the amount of One hundred twenty
13 
five thousand pesos (P125,000.00);
14 
j) For the loss of one hand or one foot, the amount of Seventy-five thousand pesos
15 
(P75,000.00); and
16 
k) For the loss of sight of one eye, the amount of Seventy-five thousand pesos
17 
(P75,000.00).
18 
Provided, That the Secretary of Labor and Employment (SOLE) shall regularly adjust to
19 
inflation such amounts every five (5) years, based on data reported by the Philippine
20 
Statistics Authority.
21 
Sec. 5. Health Insurance.- In addition to the compensation that shall accrue to the
22 
worker in the preceding section, every construction worker shall likewise be entitled to
23 
receive fair and prompt medical benefits In cases where the illness is directly attributable
24 
to or was developed in the course of employment. This Is meant to cover loss of wages
25 
due to workplace exposure.
26 
Sec. 6. Contractor Liability for Workpiace Accidents. - Contractors shall be held strictly
27 
liable for workplace accidents involving their employed construction workers. In the event
28 
of an accident resulting In injury or death, the contractor shall be responsible for
29 
providing immediate assistance, including medical attention, and financial compensation
30 
to the affected worker or the worker's family.


1 
Sec. 7. Penalties. - Any contractor who fails to comply with the mandatory insurance
2 
coverage and contractor liability provisions of this Act shall, upon conviction, suffer the
3 
following penalties:
4 
a) For the first violation, a fine of not less than Three hundred thousand pesos
5 
(P300,000.00) but not more than Five hundred thousand pesos (P500,000.00); and
6 
b) For any subsequent violation, a fine of not less than Five hundred thousand pesos
7 
(P500,000.00) but not more than One million pesos (P1,000,000.00).
8 
If the offender is an alien or foreigner, he shall be deported immediately upon service of
9 
sentence without further proceedings.
10 
Upon filing of the appropriate complaint or information, the SOLE shall request the
11 
appropriate local government unit to cancel or revoke the business permit, permit to
12 
operate, and other similar privileges granted to any contractor that fails to abide by or
13 
violates the provisions of this Act. The contractor shall also be blacklisted and barred from
14 
engaging in any construction-related projects in the Philippines for a period of not less
15 
than five (5) years from the date of the conviction.
16 
Sec. 8. Implementing Rules and Regulations. - Within ninety (90) days from the
17 
effectivity of this Act, the SOLE shall promulgate the Implementing rules and regulations
18 
as may be necessary to ensure the efficient and effective implementation of this Act.
19 
Sec. 9. Separability Clause. - If any provision of this Act is declared Invalid or
20 
unconstitutional, the provisions not affected thereby shall remain in full force and effect.
21 
Sec. 10. Repealing Clause. - All laws, presidential decrees, executive orders,
22 
presidential proclamations, rules and regulations, or parts thereof contrary to or
23 
Inconsistent with this Act are hereby repealed or modified accordingly.
24 
Sec. 11. Effectivity. - All laws, presidential decrees, executive orders, presidential
25 
proclamations, rules and regulations, or parts thereof contrary to or Inconsistent with this
26 
Act are hereby repealed or modified accordingly.
Approved,