Coverage and automatic insurance
- Section 1 covers every Punong Barangay, Sangguniang Barangay Member, Chairman of the Kabataang Barangay, Barangay Secretary, and Barangay Treasurer, and every member of the Sangguniang Panlalawigan, Sangguniang Panlungsod, and Sangguniang Bayan, who is duly elected or appointed and duly qualified, and who does not receive fixed salary or compensation.
- Coverage operates automatically during incumbency (Section 1).
- Coverage ceases automatically when the official receives a fixed salary or compensation in the same capacity or by virtue of a permanent appointment in any government office, or by election to another public office (Section 1).
- Coverage applies whether the contingency is work-connected or not for the benefits provided under Sections 2, 3, 4, and 5.
Death and permanent disability benefits
- Section 2 grants death benefits when a covered official dies during incumbency, whether the death is work-connected or not.
- For death benefits under Section 2:
- Beneficiaries of a Punong Barangay or a member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan receive PHP 7,000.00.
- Beneficiaries or a member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, or Chairman of the Kabataang Barangay receive PHP 5,000.00.
- In addition to the death benefits under Section 2, a burial benefit of PHP 1,000.00 is paid to beneficiaries (Section 2).
- Section 3 grants benefits for total and permanent incapacity or disability, as determined by the System, occurring during incumbency whether work-connected or not.
- For disability benefits under Section 3:
- A Punong Barangay or a member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan receives PHP 5,000.00.
- A member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, or Chairman of the Kabataang Barangay receives PHP 3,000.00.
- Section 3 also provides a burial benefit of PHP 1,000.00 to beneficiaries if death occurs within one year from the onset of the total and permanent incapacity or disability.
- Section 3 bars double recovery: anyone availing of benefits under Section 3 cannot benefit from Sections 2, 4, and 5.
Injury benefits (limits and schedules)
- Section 4 grants injury benefits for injuries resulting from an accident occurring during incumbency, whether work-connected or not, for:
- A Punong Barangay, or
- A member of the Sangguniang Panlalawigan, Sangguniang Panlungsod, or Sangguniang Bayan.
- Under Section 4, the injury benefits in no case exceed a maximum benefit of PHP 5,000.00 per covered year.
- Section 4 provides the following benefit schedule for injuries:
- Brain injury with loss of sanity: PHP 5,000.00
- Permanent loss of sight in both eyes: PHP 5,000.00
- Permanent loss of sense of hearing in both ears: PHP 4,000.00
- Permanent loss of sight in one eye: PHP 2,500.00
- Permanent loss of sense of hearing in one ear: PHP 2,000.00
- Loss or destruction of two or more limbs: PHP 5,000.00
- Loss of one limb: PHP 2,500.00
- Loss or destruction of both hands at or above the wrist: PHP 4,000.00
- Loss or destruction of both feet at or above the ankle: PHP 4,000.00
- Loss or destruction of one hand at or above the wrist: PHP 2,000.00
- Loss or destruction of one foot at or above the ankle: PHP 2,000.00
- Loss or destruction of every thumb or great toe: PHP 750.00
- Loss or destruction of every finger or toe: PHP 250.00
- Other injury requiring hospitalization of at least forty days: PHP 1,500.00
- Other injury requiring hospitalization of less than forty days: at an amount not exceeding PHP 1,000.00, as determined by the Government Service Insurance System and prescribed in its rules and regulations issued pursuant to the Order
- Other injury not requiring hospitalization but requiring medical attention for at least fifteen days: PHP 500.00
- Other injury not requiring hospitalization but requiring medical attention for less than fifteen days: at an amount not exceeding PHP 300.00, as determined by the Government Service Insurance System and prescribed in its rules and regulations issued pursuant to the Order
- Section 5 grants injury benefits for accident injuries during incumbency, whether work-connected or not, for members of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, and Chairman of the Kabataang Barangay.
- Under Section 5, the injury benefits in no case exceed a maximum benefit of PHP 3,000.00 per covered year.
- Section 5 provides the following injury benefit schedule:
- Brain injury with loss of sanity: PHP 3,000.00
- Permanent loss of sight in both eyes: PHP 3,000.00
- Permanent loss of sense of hearing in both ears: PHP 2,500.00
- Permanent loss of sight in one eye: PHP 1,500.00
- Permanent loss of sense of hearing in one ear: PHP 1,250.00
- Loss or destruction of two or more limbs: PHP 3,000.00
- Loss of one limb: PHP 1,500.00
- Loss or destruction of both hands at or above the wrist: PHP 2,500.00
- Loss or destruction of both feet at or above the ankle: PHP 2,500.00
- Loss or destruction of one hand at or above the wrist: PHP 1,250.00
- Loss or destruction of one foot at or above the ankle: PHP 1,250.00
- Loss or destruction of every thumb or great toe: PHP 450.00
- Loss or destruction of every finger or toe: PHP 150.00
- Other injury requiring hospitalization of at least forty days: PHP 1,000.00
- Other injury requiring hospitalization of less than forty days: at an amount not exceeding PHP 800.00, as determined by the Government Service Insurance System and prescribed in its rules and regulations issued pursuant to the Order
- Other injury not requiring hospitalization but requiring medical attention for at least fifteen days: PHP 300.00
- Other injury not requiring hospitalization but requiring medical attention for less than fifteen days: at an amount not exceeding PHP 200.00, as determined by the Government Service Insurance System and prescribed in its rules and regulations issued pursuant to the Order
Conditions that bar benefits
- Section 7 prohibits payment of any benefit under the Order to a covered official or beneficiaries when the injury, sickness, disability, or death was occasioned by:
- the official’s intoxication,
- the official’s willfull intention to injure or kill himself or another, or
- the official’s notorious negligence.
Premiums, funding, and administrative costs
- Section 6 requires the national government to appropriate annually and include in the General Appropriations Act the total annual premiums based on the actual number of local officials covered under Section 1, as certified by the Department of Local Government.
- Section 6 fixes initial annual premium rates unless later adjusted:
- PHP 110.00 for every Punong Barangay and member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan.
- PHP 48.00 for every member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, and Chairman of the Kabataang Barangay.
- Section 6 directs the Government Service Insurance System to conduct periodic actuarial studies to determine adequacy of contributions.
- Section 6 allows premium adjustments based on actuarial studies, and the adjusted premium rates certified by the System must be provided in the General Appropriations Act for each applicable year thereafter.
- Section 6 provides a protection rule: failure or delay in payment of premiums shall not prejudice the efficacy and enforceability of the insurance benefits under the Order.
- Section 9 allows a maximum expense loading of 12% of the annual premiums to be disbursed by the Government Service Insurance System for administrative and operations expenses.
Choice of benefits; implementation rules
- Section 8 grants a choice-of-benefits rule when other laws provide similar benefits for the same contingencies: the covered official or beneficiaries who qualify for such benefits may choose which benefit will be paid.
- Section 10 requires the Government Service Insurance System to prescribe and promulgate rules and regulations necessary for proper implementation within one month after the effectivity of the Order.
- Section 11 amends or modifies inconsistent executive orders, rules and regulations, or parts thereof only to the extent necessary to affect enforcement of the Order.
Effect, repeal, and governing framework
- The Order states a policy purpose of increasing and rationalizing existing insurance benefits by integrating protections previously granted under R.A. 4898, as amended, and extending beneficial coverage for certain local officials under P.D. 1147.
- The Order expressly references prior statutory insurance frameworks by name and links barangay and certain local legislative officials to insurance benefits previously granted under R.A. 4898, as amended, and extended under P.D. 1147.
- The Order provides its own transitory and operating effect by expressly setting automatic coverage under Section 1, benefit amounts under Sections 2, 3, 4, and 5, and by requiring rules and regulations within one month under Section 10.
- The Order takes effect immediately (Section 12).