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Republic of the Philippines
HCUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

House Bill No. _ 5975

Introduced by Honorable Sherwin T. Gatchalian

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 opportuniti2s for all.” 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 aii 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, the passage and

approval of this legislation is earnestly sought.


Republic of the Philippines i
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

House Bill No. __59'75

—_—
Introduced by Honorable Sherwin T. Gatchalian

—_—_

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

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

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

SEC. 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 vf 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.

SEC. 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 hite and
includes a corporation, partnership, limited liability company,
association, group of persons, state, city, municipality, school district, or
any government subdivision;

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

d) 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;

) 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;

f) 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.

SEC. 4. Mandatory Insurance Coverage. - All construction workers
employed in a construction project or site shall be provided a group personal
dent 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 in 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.

SEC. 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.


SEC. 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);

1) For loss of sight of both eyes, the amount of Fifty thousand pesos
(P50,000.00);

g) For loss of one hand and one foot, the amount of Fifty thousand
pesos (P50,000.00);

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

i) 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).

SEC. 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.


SEC. 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;
}) his wilful intention to injure or kill himself or another; or
c) his gross negligence.

SEC. 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.

SEC. 10, Implementing Rules and Regulations. - Within ninoty (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.

SEC. 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,


SEC. 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.

SEC. 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,