Line Workers Insurance and Benefits Act

TWENTIETH CONGRESS OF THE ) First Regular Session 25 JUL 14 A1:02 SENATE S. No. _ Introduced by Senator Francis G. Escudero AN ACT PROVIDING MANDATORY INSURANCE COVERAGE AND OTHER BENEFITS FOR ALL LINE WORKERS EXPLANATORY NOTE The continuous and reliable supply of electricity - crucial in sustaining our economic growth and maintaining our way of life - rests in the hands of line workers who construct, install, maintain, rehabilitate and repair our electrical transmission and distribution systems. While they perform both critical and dangerous work, a number of them do so bereft of any form of coverage against death, accidents, illness, and other fortuitous events that could be sustained in the line of duty. To address this concern, this bill seeks to mandate private distribution utilities, electric cooperatives and transmission or grid operators to provide insurance coverage to all their respective line workers and extend other entitlements such as retirement and disability benefits, death and burial assistance, and medical expense reimbursements, among others. Drawing from House Bill No. 7561 approved by the House of Representatives in the Nineteenth Congress, it is hoped that the provision of insurance coverage and other benefits would ensure that our line workers, as well as their families, are protected from the risks and perils of their chosen occupation. In view of the foregoing, the passage of this bill is earnestly sought. FRANCIS G. ESCUDERO

REPUBLIC OF THE PHILIPPINES First Regular Session REPUTIE OF THE PEREIRE 25 JUL 14 N1:02 SENATE S. No. . Introduced by Senator Francis G. Escudero AN ACT PROVIDING MANDATORY INSURANCE COVERAGE AND OTHER BENEFITS FOR ALL LINE 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 "Line Workers Insurance

2 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 5 continuous and reliable supply of electricity, not only in residential dwellings, but most 6 importantly, in commercial and industrial establishments, specifically in the 7 countryside and rural areas, as envisioned by the Rural Electrification Program, and 8 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 Worker. - For the purposes of this Act, line workers

shall refer to persons, including crews, drivers and helpers, who are directly responsible for the construction, installation, maintenance, reconstruction, rehabilitation and repair of electrical transmission and distribution systems, including underground cables, electrical substations and other related electrical facilities.

Sec. 4. Coverage. - This Act shall cover all line workers in the power industry

2 sector as defined in Section 3 hereof, including those working in private distribution 3 utilities, electric cooperatives and transmission or grid operators.

Sec. 5. Mandatory Insurance Coverage for Line Workers. - All covered line

workers shall be entitled to life, accident or disability insurance benefits in accordance 6 with the following minimum insurance coverage schedule: (a) For electric cooperatives, the minimum insurance coverage shall be as follows: Classification Minimum Insurance Coverage Small Two Hundred Thousand Pesos (P200,000.00) Medium Four Hundred Thousand Pesos (P400,000.00) Large Six Hundred Thousand Pesos (P600,000.00) Extra Large Eight Hundred Thousand Pesos (P800,000.00) Mega Large One Million Pesos (P1,000,000.00) (b) For private distribution utilities, the minimum insurance coverage shall be One Million Five Hundred Thousand Pesos (P1,500,000.00); and (c) For transmission or grid operators, the minimum insurance coverage shall be Two Million Pesos (P2,000,000.00). 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 adjustments to their insurance coverage. Otherwise, they should augment the amount of coverage to comply with this Act: Provided, That in no way shall this Act be construed to diminish or reduce any insurance coverage which the line workers are already receiving or any entitlement under existing laws, company

1 policy, or employment contracts or collective bargaining agreements between the 2 employer and the employees.

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

as provided in Section 5 of this Act, the employers of line workers shall also ensure the provision of the following mandatory benefits: (a) Retirement benefits; (b) Death benefits and burial assistance; (c) Disability benefits; (d) Reimbursement of actual medical expenses in case of death, accident, sickness, disability or injury sustained by the line worker in the line of duty; and (e) Other benefits and entitlements as may be identified by the Department of Labor and Employment (DOLE) in consultation with the stakeholders concerned: Provided, That in cases 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 shall 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.

Sec. 7. Disqualifications from Benefits. - No benefit shall be extended to line

workers or their beneficiaries in cases where the death, accident, sickness, disability, or injury suffered by the line worker happened during an unauthorized absence or abandonment of office, or if the same was caused by any of the following: (a) Willful intention to injure or kill oneself; (b) Gross and habitual 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 from

2 the effectivity of this Act, the National Electrification Administration, DOLE, and the 3 Energy Regulatory Commission shall, in consultation with private distribution utilities, electric cooperatives, transmission or grid operators, and other stakeholders, 5 promulgate the rules and regulations to effectively implement the provisions of this 6 Act.

Sec. 9. Separability Clause. - If any provision or part hereof is declared

8 unconstitutional, the remainder of this Act or any provision not affected thereby shall 9 remain in full force and effect.

Sec. 10. Repealing Clause. - All laws, acts, decrees, executive orders,

issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.

Sec. 11. Effectivity. - This Act shall take effect immediately following its

publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,