EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S. B. No.
741
";-5: • 
i-1
(DlCir? o(
•19 JUL 24 All 51
R£CE.;.j£\
Introduced by SEN. SHERWIN T. GATCHALIAN
AN ACT
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE FOR
CONSTRUCTION WORKERS
EXPLANATORY NOTE
Section 3, Article XIII of the 1987 Constitution provides that "The State 
shall afford full protection to labor, local and overseas, organized and 
unorganized, and promote full employment opportunities for a ll." It is 
therefore the duty of Congress to legislate laws that will ensure the health 
and well-being of workers.
The State recognizes the hazardous environment where construction 
workers ply their craft. News of accidents is nothing new in construction sites, 
either through the negligence of the employer or the employee's lack of skill. 
Whatever the case, physical harm, disability, or worst, death is often the 
result.
Unfortunately, it is almost always the workers that are left short- 
handed after the occurrence of such accidents. Oftentimes, the employer


merely offers a measly sum to the family of the deceased worker to 
compensate for their loss. To avoid such a disastrous state, it is the intent of 
this bill to 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. This may not completely erase the pain, but it surely will not hurt to 
alleviate the loss.
In the interest of social justice and equity, support for the passage and 
approval of this legislation is earnestly sought.
INT. GA
LIAN


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S. B. No
SENATE
741
'19 JUL 24 All 51
RECtiV. u- liV.,
Introduced by SEN. SHERWIN T. GATCHALIAN
AN ACT
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE FOR
CONSTRUCTION WORKERS
Be it enacted by the Senate and the House o f Representatives o f the 
Phiiippines in Congress assembied:
1 
SEC. 1. Short Title. -  This Act shall be known as the "'Construction
2 
Workers Insurance Act."
3 
SEC. 2. Declaration o f Policy. -  It is hereby declared the policy of
4 
the State to ensure the safety and promote the welfare of construction
5 
workers because of the hazardous and dangerous work environment. To this
6 
end, it is the intent of this Act to require employers of construction workers to
7 
provide for mandatory group personal accident insurance coverage to
8 
guaranty the quick and efficient delivery of indemnity to injured workers at a
9 
reasonable cost to the employers.
10 
SEC. 3. Definition o f Terms. -  The following terms, for the purposes
11 
of this Act, shall be defined as follows:
12
a)
The term Construction covers:


1 
i. Building, including excavation and the construction, structural
2 
alteration, renovation, repair, maintenance (including cleaning and painting)
3 
and demolition of all types of buildings or structures; and
4 
ii. The erection and dismantling of prefabricated buildings and
5 
structures, as well as manufacturing of prefabricated elements on the
6 
construction site.
7 
b) 
Construction worker refers to a person engaged in construction
8 
that is exposed to a considerable risk, danger or hazard while in the
9 
line of work.
10 
c) 
Employer refers to a contractor or a subcontractor that employs
11 
at least ten (10) construction workers to perform a service for hire and
12 
includes 
a 
corporation, 
partnership, 
limited 
liability 
company,
13 
association, group of persons, state, city, municipality, school district,
14 
or any government subdivision;
15 
c) 
Construction site refers to any place or location where a building
16 
or a structure is being constructed;
17 
d) 
Insurance refers to a contract wherein one party undertakes to
18 
compensate the other for an injury relating to a particular subject as a
19 
result of the occurrence of designated hazards;
20 
e) 
Group Persona! Accident Insurance refers to a type of insurance
21 
coverage offered to a group of people, which provides benefit to the
22 
individual or beneficiaries 
if the covered individual is permanently
23 
disabled or dies during the defined insurance covered period resulting
24 
from accidental death, disability and injuries;
25 
f) 
Insurance company is a corporation, duly accredited by the
26 
Insurance Commission that provides for the insurance coverage of the
27 
construction worker upon payment by the employer of the required
28 
insurance premium.


1 
SEC. 4. Mandatory Insurance Coverage. -  All construction workers
2 
employed in a construction project or site shall be provided a group personal
3 
accident insurance coverage by the employer. The duration of the insurance
4 
shall start from the commencement of the service of the construction worker
5 
until the completion of the construction project or upon the termination of the
6 
employment contract.
7 
Nothing in this Act shall be construed to diminish or reduce any benefit
8 
and other privileges which the worker may be entitled under existing laws,
9 
decrees, executive orders, company policy or practice or any agreement or
10 
contract between the employer and employees.
11 
SEC. 5. Cost o f Insurance. -  The premiums to be paid to the
12 
insurance company shall be completely paid for by the employer and shall not
13 
be deducted from the wages of the construction workers.
14 
SEC. 6. Minimum Insurance Coverage. -  The group personal
15 
accident insurance shall provide for financial assistance including, but not
16 
limited to, the following:
17 
a) For natural death, the amount of Seventy five thousand pesos
18 
(P75,000.00);
19 
b) For accidental death, the amount of One hundred thousand
20 
pesos (P100,000.00);
21 
c) For death in the line of work, the amount of One hundred fifty
22 
thousand pesos (P150,000.00);
23 
d) For loss of both hands, the amount of Fifty thousand pesos
24 
(P50,000.00);
25 
e) For loss of both feet, the amount of Fifty thousand pesos
26 
(P50,000.00);
27 
f) For loss of sight of both eyes, the amount of Fifty thousand
28 
pesos (P50,000.00);


1 
g) For loss of one hand and one foot, the amount of Fifty thousand
2 
pesos (P50,000.00);
3 
h) For loss of one hand and sight of one eye, the amount of Fifty
4 
thousand pesos (P50,000.00);
5 
i) For loss of one foot and sight of one eye, the amount of Fifty
6 
thousand pesos (P50,000.00);
7 
j) For loss of one hand or one foot, the amount of Twenty five
8 
thousand pesos (P25,000.00); and
9 
k) For loss of sight of one eye, the amount of Twenty five thousand
10 
pesos (P25,000.00).
11 
SEC. 7. Health Insurance. - In addition to the compensation that
12 
shall accrue to the worker in the preceding section, every construction worker
13 
shall likewise be entitled to receive fair and prompt medical benefits in cases
14 
where the illness is directly attributable to or was developed in the course of
15 
employment. This is meant to cover loss of wages due to workplace exposure.
16 
SEC. 8. Limitations. - No compensation shall be given to the
17 
construction worker or his dependents when the injury, illness, disability or
18 
death was due to any of the following:
19 
a) his intoxication;
20 
b) his wilful intention to injure or kill himself or another; or
21 
c) his gross negligence.
22 
SEC. 9. Penaities. -  Any person, partnership or corporation who
23 
violates any provision of this Act shall, upon conviction, suffer the following
24 
penalties:
25 
a) For the first violation, a fine of not less than Two hundred
26 
thousand pesos (P200,000.00) but not more than Five hundred thousand
27 
pesos (P500,000.00); and
28 
b) For any subsequent violation, a fine of not less than Four
29 
hundred thousand pesos (P400,000.00) but not more than One million
30 
pesos (P1,000,000.00).


1 
If the offender is a corporation, organization or any similar entity, the
2 
officials thereof directly involved in the violation shall be liable.
3 
If the offender is an alien or foreigner, he shall be deported
4 
immediately upon service of sentence without further proceedings.
5 
Upon filing of the appropriate complaint or information, the Secretary
6 
of Labor and Employment shall request the appropriate local government unit
7 
to cancel or revoke the business permit, permit to operate and other similar
8 
privileges granted to any business entity or person that fails to abide by or
9 
violates the provisions of this Act.
10 
SEC. 10. Im plem enting Rules and Regulations. -  Within ninety
11 
(90) days from the effectivity of this Act, the Secretary of Labor and
12 
Employment shall promulgate the implementing rules and regulations as may
13 
be necessary to ensure the efficient and effective implementation of this Act.
14 
SEC. 11. Separability Clause. -  Should any part of this Act be
15 
declared unconstitutional, the rest of the provisions of this Act shall continue
16 
to be in effect and subsisting.
17 
SEC. 12. Repealing Clause. -  The provisions of other laws, decrees,
18 
executive orders, rules and regulations inconsistent with this Act are hereby
19 
repealed, amended, or modified accordingly.
20 
SEC. 13. Effectivity. -  This Act shall take effect fifteen (15) days after
21 
its publication in the Official Gazette or in at least two (2) national
22 
newspapers of general circulation.
Approved,