NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
of tuc '■ t'iai'i1
*22 JUL 25 All 38
SENATE
S.B. No. 821
RECEIVED BY;
Introduced by SEN. WIN GATCHALIAN
AN ACT
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE FOR
CONSTRUCTION WORKERS
EXPLANATORY NOTE
The 1987 Constitution declares as a State policy the giving of full protection to 
labor, local and overseas, organized and unorganized, and the promotion of full 
employment opportunities for all. It is therefore the duty of Congress to legislate laws 
that will ensure the protection of the health and the promotion of the well-being of 
workers.
It is undeniable that the work environment where construction workers ply their 
craft pose health risks to them. News of accidents is nothing new in construction sites, 
either through the negligence of the employers, or the employees' lack of skills, or 
because of pure accident.
Whatever maybe the case, physical harm, disability, or worst, death is often 
the result. Unfortunately, it is almost always the workers that are left shorthanded 
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 disadvantageous scenario for workers, 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 even the death of the worker. This may not completely 
erase the pain, but it can contribute to alleviate the consequential burdens due to the 
loss.
In the interest of social justice and equity, support for the passage is earnestly
sought.
GATCHALIAN


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of li'r' 0' •
•22 JUL 25 All 38
SENATE 
S. B. No.
RECEIVED BY:
Introduced by SEN. WIN 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:
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SECTION 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 the hazardous and dangerous work environment. To this end, it is
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tne intent of this Act to require employers of construction workers to provide
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for mandatory group personal accident insurance coverage to guarantee the
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quick and efficient delivery of indemnity to injured workers at a reasonable cost
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to the employers.
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SEC. 3. Definition of Terms. - The following terms, for the purposes of
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this Act, shall be defined as follows:
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a) The term Construction covers:
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i. Building, including excavation and the construction, structural
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alteration, renovation, repair, maintenance (including cleaning


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and painting) and demolition of all types of buildings or structures;
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and
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ii. The erection and 
dismantling of prefabricated 
buildings and
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structures, as well as manufacturing of prefabricated elements on
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the construction site.
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b) Construction worker- refers to a person engaged in construction that
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is exposed to a considerable risk, danger or hazard while in the line of
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work.
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c) Employer - refers to a contractor or a subcontractor that employs at
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least ten (10) construction workers to perform a service for hire and
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includes a corporation, partnership, limited liability company, association,
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group of persons, state, city, municipality, school district, or any
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government subdivision;
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d) Construction Site - refers to any place or location where a building or
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a structure is being constructed;
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e) Insurance - refers to a contract wherein one party undertakes to
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compensate the other for an injury relating to a particular subject as a
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result of the occurrence of designated hazards;
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f) Group Persona! Accident Insurance - refers to a type of insurance
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coverage offered to a group of people, which provides benefit to the
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individual or beneficiaries if the covered individual is permanently
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disabled or dies during the defined insurance covered period resulting
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from accidental death, disability and injuries;
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g) Insurance Company - a corporation, duly accredited by the Insurance
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Commission, that provides for the insurance coverage of the construction
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worker upon payment by the employer of the required insurance
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premium.
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SEC. 4. Mandatory Insurance Coverage. - All construction workers
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employed in a construction project or site shall be provided a group personal
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accident insurance coverage by the employer. The duration of the insurance
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shall start from the commencement of the service of the construction worker


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until the completion of the construction project or upon the termination of the
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employment contract.
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Nothing in this Act shall be construed to diminish or reduce any benefit
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and other privileges which the worker may be entitled under existing laws,
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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
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company shall be completely paid for by the employer and shall not be deducted
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from the wages of the construction workers.
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SEC. 6. Minimum Insurance Coverage. - The group personal accident
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insurance shall provide for financial assistance including, but not limited to, the
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following:
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a) For natural death, the amount of Seventy-five thousand 
pesos
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(P75,000.00);
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b) For accidental death, the amount of One hundred thousand pesos
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(P100,000.00);
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c) For death In the line of work, the amount of One hundred fifty
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thousand pesos (P150,000.00);
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d) For loss of both hands, the amount of Fifty thousand 
pesos
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(P50,000.00);
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e) For loss of both feet, the amount of Fifty thousand 
pesos
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(P50,000.00);
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f) For loss of si ^ht of both eyes, the amount of Fifty thousand pesos
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(P50,000.00);
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g) For loss of one hand and one foot, the amount of Fifty thousand pesos
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(P50,000.0C);
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h) For loss of one hand and sight of one eye, the amount of Fifty
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thousand pesos (P50,000.00);
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i) For loss of one foot and sight of one eye, the amount of Fifty thousand
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pesos (P50,000.00);


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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).
Provided, That the Secretary of Labor and Employment (SOLE) shall 
regularly adjust to inflation such amounts every five (5) years, based on data 
reported by the Philippine Statistics Authority.
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;
b) his willful 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 (P2^ 10,000.00) but not more than Five hundred thousand pesos 
(P500,000.00); and
b) For anw 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


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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 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.
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. 13. Effectivity. -This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette ox in a newspaper of general circulation in the 
Philippines.
Approved,