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ZL DATE April 1, 2024

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Republic of the Philippines ~~}
HOUSE OF REPRESENTATIVES —|[O

Quezon City, Metro Manila

NINETEENTH CONGRESS
2 Regular Session

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House Bill No. 10236

Introduced by Representatives JOCELYN P. TULFO, ERWIN T. TULFO,
RALPH WENDEL P. TULFO, and EDVIC G. YAP,

EXPLANATORY NOTE

This bill seeks to require employers, particularly contractors, of construction
workers to provide for mandatory group personal accident insurance coverage and
guarantee the quick and efficient delivery of indemnity to injured workers at a
reasonable cost to the employers.

A report by the International Labor Organization showed that only 2.2 million
Filipino workers in medium and large enterprises enjoy effective occupational safety
and health protection leaving 38.8 million other Filipino workers without safety and
health protection’.

‘One of these sectors is the construction industry which is among the high-risk
establishments under Department Order No. 198 series of 2018 of the Department of
Labor and Employment. Despite the dangers and risks construction workers are
exposed to everyday, the Bureau of Working Conditions (BWC) reported in 2023 that
only 52 out of 95 construction projects inspected between August 1 to 15, 2023 were
not compliant with occupational safety and health (OSH) standards?

It is the duty of the State to ensure that our labor force is afforded full protection
especially those in high-risk and occupational hazard industries such as construction.
Thus, it is incumbent upon the State to legislate laws that will ensure the protection of
the health and promotion of the well-being of construction workers. It is crucial to
ensure the safe working environment in construction sites and prevent accidents
resulting to death or injury to our construction workers.

As such, the immediate passage of this bill is earnestly sought.

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2 hutps://www-pna.gov.phiarticles/1207975


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HON. RALPH {EL P. TULFO HON. EDYIC G. YAP


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

NINETEENTH CONGRESS
2 Regular Session

House Bill No, 10236

Introduced by Representatives JOCELYN P. TULFO, ERWIN T. TULFO,
RALPH WENDEL P. TULFO, and EDVIC G. YAP

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 their
hazardous and dangerous work environment. To this end, it is the intent of this Act
to require employers, particularly contractors, of construction workers to provide for
higher mandatory group personal accident insurance coverage and hold them liable
for workplace accidents to guarantee 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 works
who is exposed to considerable risk, danger or hazard while in the line of
work.

©) Contractor - 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;

a) 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 asa 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;

g) Insurance Company. - a corporation, duly accredited by the Insurance
Commission, that provides for the insurance coverage of the construction
workers upon payment by the employer of the required insurance premium.

SEC. 4. Mandatory Insurance Coverage. - All construction workers employed
ina construction project or site shall be provided a group personal accident insurance
coverage by the employer, particularly contractors. 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.

The insurance coverage mandated by this Act shall be higher and shall provide
for financial assistance, including, but not limited to, the following:

a) For natural death, the amount of One Hundred Fifty-Thousand Pesos
(P150,000.00);

b) For accidental death, the amount of Two Hundred Fifty Thousand Pesos
(P250,000.00);

) For death in the line of work, the amount of Three Hundred Fifty Thousand
Pesos (P350,000.00);

4) For loss of both hands, the amount of One Hundred Twenty-Five Thousand
Pesos (P125,000.00);

e) For loss of both feet, the amount of One Hundred Twenty-Five Thousand
Pesos (P125,000.00);

£) For the loss of sight of both eyes, the amount of One Hundred Twenty-Five
Thousand Pesos (P125,000.00);

g) For the loss of one hand and one foot, the amount of One Hundred Twenty-
Five Thousand Pesos (P125,000.00);


h) For the loss of one hand and the sight of one eye, the amount of One
Hundred Twenty-Five Thousand Pesos (P125,000.00);

i) For the loss of one foot and sight of one eye, the amount of One Hundred
‘Twenty-Five Thousand Pesos (P125,000.00);

j) For the loss of one hand or one foot, the amount of Seventy-five Thousand
Pesos (P75,000.00); and

k) For the loss of sight of one eye, the amount of Seventy.
(P75,000.00).

ive Thousand Pesos

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. 5. 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. 6. Contractor Liability for Workplace Accidents. - Contractors shall be
held strictly liable for workplace accidents involving their employed construction
workers. In the event of an accident resulting in injury or death, the contractor shall
be responsible for providing immediate assistance, including medical attention, and
financial compensation to the affected worker or the worker's family.

SEC. 7. Penalties. - Any contractor who fails to comply with the mandatory
insurance coverage and contractor liability provisions of this Act shall, upon
conviction, suffer the following penalties:

a) For the first violation, a fine of not less than Three Hundred Thousand Pesos
(P300,000.00) but not more than Five Hundred Thousand Pesos (500,000.00);
and

b) For any subsequent violation, a fine of not less than Five Hundred Thousand
Pesos (P500,000.00) but not more than One Million Pesos (P1,000,000.00).

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 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 contractor that fails to abide by
or violates the provisions of this Act. The contractor shall also be blacklisted and
barred from engaging in any construction-related projects in the Philippines for a
period of not less than five (5) years from the date of the conviction.


SEC. 8. 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 sufficient and effective implementation
of this Act.

SEC. 9. 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. 10. 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. 11. 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.