TWENTIETH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE 
S.B. No.
o( ti)f =>(!■. ,'tm-p
25 AUG-7 P2S6
iU-CtlVcU eY,
Introduced by SEN. WIN GATCHALIAN
AN ACT
MANDATING ACCIDENT AND LIFE INSURANCE COVERAGE FOR 
CONSTRUCTION WORKERS
EXPLANATORY NOTE
Under the 1987 Constitution, it is the policy of the State to afford full protection 
to labor, local and overseas, organized and unorganized, and to promote full 
employment and equality of employment opportunities for all. It is therefore the duty 
of Congress to craft laws that will ensure the protection of the life and health of 
workers, as well as the promotion of their wellbeing.
With infrastructure development being a key driver of economic growth, it is 
undeniable how crucial the role of construction workers are in sustaining economic 
progress and promoting the efficient delivery of public services. However, as much as 
the work construction workers do is essential in sustaining our country and economy, 
it is undeniable that their work environment poses risks and dangers not only to their 
health, but also to their lives. Accidents, be it through employer negligence, lack of 
skill of employees, or pure circumstance, are nothing new in construction sites.


Regardless of cause, construction workers often find themselves at high risk of 
work-related physical harm, disability, or in the most unfortunate circumstances, 
death. Unfortunately, in cases like these, it is almost always the construction workers 
and their families that are left shorthanded. Often, employers offer a measly sum to 
the construction worker and their family as compensation.
In order to protect construction workers from such disproportionately 
disadvantageous situations, this proposed measure seeks to mandate all construction 
workers employed in construction projects or sites to be covered by a group personal 
accident insurance contract, which shall be secured by the employer at no cost to the 
construction workers. This measure aims to provide minimum insurance coverage to 
indemnify construction workers or their beneficiaries in case of death, disability, or 
bodily injury due to an accident during the construction workers' employment.
To ensure compliance of all contractors and subcontractors, this bill likewise 
imposes penalty for violations, ranging from the imposition of a fine to revocation of 
business permit or permit to operate. While these mechanisms will not completely 
erase the pain caused by work-related disability or death, these can alleviate the 
financial burden brought about by work-related accidents to construction workers and 
their families.
In view of the foregoing, the immediate passage of this measure is earnestly
sought.


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
25 AUG -7 P2S6
S. B. No
SENATE
1108
RHCEiVTD B ■,
Introduced by SEN. WIN GATCHALIAN
AN ACT
MANDATING 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:
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SEC. 1. Short Title. - This Act shall be known as the "Construction
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Workers Insurance Act".
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
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State to ensure the safety and promote the welfare of construction workers
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because of their hazardous and dangerous work environment. To this end, it is
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the intent of this Act to require employers, particularly contractors, of
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construction workers to provide for mandatory group personal accident
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insurance coverage to guarantee the quick and efficient delivery of indemnity
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to injured workers at a reasonable cost to the employers.
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SEC. 3. Definition of Terms. — For purposes of this Act, the following
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terms shall be defined as follows:
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(a) Construction covers:
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(i) Building, including excavation and the construction, structural
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alteration, renovation, repair, maintenance (including cleaning and
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painting), and demolition of all types of buildings or structures; and


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(b)
(c)
(ii) The erection and dismantling of prefabricated buildings and 
structures, as well as manufacturing of prefabricated elements on 
the construction site.
Construction worker refers to a person engaged in construction who is 
exposed to considerable risk, danger, or hazard while in the line of work. 
Contractor ox Subcontractor refers to any entity, individual, or company 
contracted to undertake a construction project or provide construction 
services for hire and includes corporations, partnerships, limited liability 
companies, associations, groups of persons, state, city, municipality, 
school district, or any government subdivision.
Employer refers to a contractor or a subcontractor that employs at least 
ten (10) construction workers to perform a service for hire;
Construction Site refers to any place or location where a building or a 
structure is being constructed;
Insurance refers to a contract whereby one undertakes for a consideration 
to indemnify another against loss, damage or liability arising from an 
unknown n- contingent event;
Group Personal Accident Insurance refers to a type of insurance offered 
to a group of people, which provides benefit to the insured individual or 
their beneficiaries in the event of death, disability, or bodily injury due to 
an accident during the defined period of insurance coverage;
Insurance Company refers to a corporation, partnership, association, 
duly accredited by the In<^”-.ice Commission to provide group personal 
accident insurance coverage.
SEC. 4. Mandatory Insurance Coverage. - All construction workers 
employed in a construction project or site shall be covered by a group personal 
accident insurance contract which shall be secured by the employer at no cost 
to the construction workers. 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,
(d)
(e) 
(0
(g)
(h)


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decrees, executive orders, company policy or practice, or any agreement or
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contract between the employer and employees.
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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 (Php 
75,000.00);
(b) 
For accidental death, the amount of One hundred thousand pesos (Php 
100,000.00);
(c) 
For death in the line of work, the amount of One hundred fifty thousand 
pesos (Php 150,000.00);
(d) 
For loss of both hands, the amount of Fifty thousand pesos (Php 
50,000.00);
(e) 
For loss of both feet, the amount of Fifty thousand pesos (Php 50,000.00);
(f) 
For loss of sight of both eyes, the amount of Fifty thousand pesos (Php 
50,000.00);
(g) 
For loss of one hand and one foot, the amount of Fifty thousand pesos 
(Php 50,000.00);
(h) 
For loss of one hand and sight of one eye, the amount of Fifty thousand 
pesos (Php 50,000.00);
(i) 
For loss of one foot and sight of one eye, the amount of Fifty thousand 
pesos (Php 50,000.00);
0) For loss of one hand or one foot, the amount of Twenty-five thousand 
pesos (Php 25,000.00); and
(k) For loss of sight of one eye, the amount of Twenty-five thousand pesos 
(Php 25,000.00).
Provided, That the Secretary of Labor and Employment (SOLE) shall 
regularly review and adjust to inflation such amounts every five (5) years, as


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may be necessary, based on data reported by the Philippine Statistics Authority
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(PSA).
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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 their beneficiaries when the injury, illness, disability, or 
death was due to any of the following:
(a) The construction worker's intoxication;
(b) The construction worker's willful intention to injure or kill oneself or 
another; or
(c) 
The construction worker's 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 (Php 200,000.00) but not more than Five hundred thousand 
pesos (Php 500,000.00); and
(b) 
For any subsequent violation, a fine of not les*" than Four hundred 
thousand pesos (Php 400,000.00) but not more than One million 
pesos (Php 1,000,000.00).
If the offender is a juridical entity, the officials thereof directly involved 
in the violation shall be liable. If the offender is an alien or foreigner, they shall 
be deported immediately upon service of sentence without further proceedings.
Upon filing of the appropriate complaint or information, the SOLE 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.


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SEC. 10. Implementing Rules and Regulations. — Within ninety 
(90) days from the effectivity of this Act, the SOLE 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. — If any provision of this Act is declared 
invalid or unconstitutional, the provisions not affected thereby shall remain in 
full force and effect.
SEC. 12. Repealing Clause. — All laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof
contrary to or inconsistent with this Act are hereby repealed or modified 
accordingly.
SEC. 12. Effectivity. — This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in a newspaper of general circulation in 
the Philippines.
Approved,