Line Workers Insurance and Benefits Act

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 7239 BY REPRESENTATIVES DAGOOC, VILLAFUERTE (M.L.), VILLAFUERTE (V.R.L.), HORIBATA, RIDON, GARDIOLA, CRUZ (A.), ALVAREZ (O.), DY (F.), MARCOS, SINGSON-MEEHAN, DE JESUS, VERGARA, DE LIMA, ROMUALDO AND LEGACION AN ACT PROVIDING FOR MANDATORY INSURANCE COVERAGE AND BENEFITS FOR ALL LINE WORKERS Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembied:

SECTION 1. Short Title. - This Act shall be known as the "Line Workers Insurance

and Benefits Act."

SEC. 2. Declaration of Policy. - The State recognizes the role of the electrical line

workers in the quest for sustainable economic development through the continuous and reliable supply of electricity, not only in residential dwellings, but most importantly, in commercial and industrial establishments, specifically in the countryside and rural areas, as envisioned by the Rural Electrification Program, and the risk they encounter in the performance of their duties and responsibilities. As such, it shall provide measures that recognize the contributions of line workers to nation-building particularly in the transmission and distribution sectors of the power industry by ensuring that their employers are providing them insurance coverage and other benefits in addition to what is provided for regularly by existing labor laws.

SEC. 3. Definition of Line Workers. - As used in this Act, line workers shall refer to

all persons, regardless of employment status, nature of appointment, or method of engagement, whether regular, probationary, project-based, co-terminus, contractual, or

job order who are directly responsible for the construction, installation, maintenance, reconstruction, and repair of overhead transmission and distribution electrical systems, including underground cables, electrical substations, and other related electrical 4 equipment and facilities. 5.

SEC. 4. Coverage. - This Act shall cover all line workers regardless of employment

status, nature of appointment, or method of engagement, whether regular, probationary, 7 project-based, co-terminus, contractual, or job order in the power industry sector as defined in Section 3 hereof, including those working in telecommunications companies, telecommunication line contractors, powerline contractors, private distribution utilities (PDUs), electric cooperatives (ECs), and transmission or grid operator.

SEC. 5. Mandatory Insurance Coverage. - All line workers shall be entitled to life and

accident or disability insurance benefits in accordance with the following minimum required coverage schedule: A. In the case of electric cooperatives, the insurance coverage requirement shall be calibrated according to the following classification: National Electrification Administration Minimum Insurance Coverage Classification (Philippine Peso) SMALL 200,000 MEDIUM 400,000 LARGE 600,000 EXTRA LARGE 800,000 MEGA LARGE 1,000,000 B. For the National Transmission Corporation and the transmission line or grid operator, the minimum insurance coverage shall be Two million pesos (P2,000,000.00). C. For PDUs, the minimum insurance coverage shall be One million five hundred thousand pesos (P1,500,000.00) The coverage shall be effective upon the commencement of their employment until their separation from the company, either by resignation, termination, or retirement. The insurance premium payments shall be shouldered entirely by the employer. Employers who are already providing insurance coverage to their line workers equal to or more than the minimum requirement as prescribed herein are no longer required to make adjustment to their insurance coverage. Otherwise, they should augment the

1 amount of coverage to comply with this Act: Provided, That in no way shall this Act be 2 construed to diminish or reduce any insurance coverage which the line workers are already receiving or any entitlement under existing laws, company policy, or employment 4 contracts or collective bargaining agreements between the employer and the employees.

SEC. 6. Mandatory Benefits. - In addition to the mandated insurance coverage, the

employers of line workers shall also ensure the provision of the following mandatory 7 benefits: (a) Retirement benefits; (b) Mortuary assistance; (c) Disability benefits; (d) Partial disability benefits; and (e) Reimbursement of actual medical expenses in case of death, accident, sickness, disability or injury sustained by the line worker in the line of duty: Provided, That when a line worker participates in power restoration and rehabilitation efforts in calamity-stricken areas or similar engagements hosted by an entity other than the employer of the line worker, such host entity may provide the line worker with benefits similar to those provided under this Section and as may be allowed by its financial capacity to cover death, accident, sickness, disability or injury sustained by the line worker during such engagement. The Department of Labor and Employment (DOLE) shall, in consultation with stakeholders, provide comprehensive list of all other benefits that line workers should be entitled to in addition to the above mandatory benefits and the same shall be incorporated in the rules and regulations to be issued to implement this Act.

SEC. 7. Disqualifications from Benefits. - No benefits shall be given to any line

worker or the line worker's beneficiaries if and when the death, accident, sickness, disability, or injury happened during an unauthorized absence or abandonment of office or is caused by any of the following: (a) Willful intention to injure or kill oneself; (b) Notorious negligence; (c) Failure to observe safety protocols or exercise reasonable care for one's own safety; and (d) Commission of a crime by the line worker.

SEC. 8. Implementing Rules and Regulations. - Within ninety (90) days upon

approval of this Act, the National Electrification Administration shall, together with the DOLE, the Energy Regulatory Commission, and in consultation with the PDUs, ECs, and telecommunications sector, promulgate and issue the rules and regulations to effectively implement the provisions of this Act.

SEC. 9. Separability Clause. - If for any reason, any part or provision of this Act is

declared unconstitutional or invalid, the other parts or provisions hereof, which are not affected thereby, shall continue to be in full force and effect.

SEC. 10. Repealing Clause. - All laws, presidential decrees, executive orders, letters

5 of instruction, administrative rules and regulations or parts thereof, which are contrary to 6 or inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its publication

9 in the Official Gazette or in a newspaper of general circulation. Approved,