Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE 
FOR CONSTRUCTION WORKERS 
EXPLANATORY NOTE 
Article XIII, Section 3 of the 1987 Constitution embodies our country’s 
commitment to protecting the rights and welfare of our workers, providing 
that "The State shall afford full protection to labor, local and overseas, 
organized and unorganized, and promote full employment opportunities for all." 
The extensive Labor Code of the Philippines or Presidential Decree No. 442, 
as amended, also provides for the institutionalization of protection to labor 
and employment. 
Among the most productive laborers in the country are workers from 
the construction industry. In particular, the Philippines employs more than 
two million construction workers.1 Due to the manual labor and nature of 
this industry, the workers are constantly exposed to dangerous working 
environments and are at high risks of musculoskeletal disorders (MSDs). 
MSDs comprise of 30% of all recorded occupational injuries of construction 
workers in the country.2 
1 Philippine Statistics Authority – National Statistics Coordination Board. (October 2011). 
Statistics: Labor and Employment. Retrieved from 
http://www.nscb.gov.ph/secstat/d_labor.asp. 
2 Bureau of Labor and Employment Statistics. (2011). PSIC F: CONSTRUCTION. Retrieved 
from http://www.bles.dole.gov.ph/PUBLICATIONS/Industry%20Yearbook/Part%20A%20-
%20Occupational%20Injuries.html  
July 14, 2022
9:34  am
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Despite having standards to ensure worker safety, a high number of 
cases of injuries are still reported annually. Consequently, the injuries 
obtained by the construction workers remain heavily unreported.3 While the 
Department of Labor and Employment (DOLE) have supervised many 
legitimate construction agencies, it is imperative that construction workers 
and their families are not denied opportunities to better safety protocols and 
accident and life insurance. 
When 
unfortunate 
circumstances 
like 
accidents 
happen, 
the 
construction workers and their families are often just paid a small amount of 
money by their employers that do not capture the sacrifices and dignity of 
labor. Many of these construction workers are denied better opportunities to 
livelihood because of days lost for being confined in hospitals or worse, death 
due to work-related accidents. 
This bill seeks to ensure that construction workers and their families 
are justly compensated with dignity and respect for their sacrifices in nation-
building. This legislation shall 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. The premiums paid to the insurance 
company shall be shouldered by the employer and shall not be deducted from 
the wages of the construction workers, and will be valid in the duration of the 
project or contract. This bill also serves as a counterpart legislation for Senate 
Bill No. 741 filed by Senator Sherwin Gatchalian. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
 
 
 
 
REP. PM VARGAS   
 
Fifth District, Quezon City 
 
 
                                               
3 Domingo, James Renier T.; De Pano, Ma. Theresa S.; Ecat, Dominic Aily G.; Sanchez, 
Nicole Ann D.G.; Custodio, Benette P. (2015). “Risk Assessment on Filipino construction 
workers. University of the Philippines Diliman, Quezon City 1101, Philippines 
 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. 8257 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
MANDATING AN ACCIDENT AND LIFE INSURANCE COVERAGE 
FOR CONSTRUCTION WORKERS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Construction 
Workers Insurance Act." 
SECTION 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 of 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. 
SECTION 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
1979


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 hire and includes 
a corporation, partnership, limited liability company, association, 
group of persons, state, city, municipality, school district, or any 
government subdivision; 
 
d) Construction site refers to any place or location where a building or a 
structure is being constructed; 
 
e) 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; 
 
f) 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; 
 
g) 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. 
 
SECTION 4. Mandatory Insurance Coverage. – All construction workers 
employed in a construction project or site shall be provided a group personal 
accident 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. 
 
SECTION 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. 
 
SECTION 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); 
 
f) 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). 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 10. Implementing Rules and Regulations. – Within ninety (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. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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,