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WHEREAS, the Sangguniang Panlalawigan, Sangguniang Panlungsod, Sangguniang Bayan and Sangguniang Barangay provide grassroots participation of the citizenry in the affairs of the government;

WHEREAS, under B.P. 337 otherwise known as the "Local Government Code", these officials are responsible for providing local support to national development by the enforcement of laws and directives and the maintenance of peace and order;

WHEREAS, pursuant to the policy of promoting autonomy in the local government unit as provided under B.P. 337, the State must find the effectuate ways of enhancing their capabilities in discharging their responsibilities as effective partners in national development;

WHEREAS, the State, in its declared policy of affording protection to labor has already granted under R.A. 4898, as amended, insurance benefits of Barangay Officials and has extended the beneficial mantle of said law to some local officials without any fixed salary or compensation, particularly the Kabataang Barangay Chairman thru P.D. 684 and the members of Sangguniang Panlalawigan, Sangguniang Panlungsod, and Suangguniang Bayan thru P.D. 1147;

WHEREAS, the benefits provided for in R.A. 4898, as amended, have been found grossly insufficient for the needs of the covered officials and their families when contingencies occur in view of the increasing cost of living;

WHEREAS, actuarial studies indicate that the premiums provided for in R.A. 4898, as amended, are very inadequate;

WHEREAS, there is a need to increase the benefits and adjust the premiums as well as integrate and rationalize existing laws granting insurance benefits to these local government officials for effective administration;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Republic of the Philippines, do hereby order:

SECTION 1. 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, duly elected or appointed, and duly qualified, who does not receive fixed salary or compensation, is, during his incumbency, automatically covered under this Order: Provided, That the moment said official receives a fixed salary or compensation whether in the same capacity or by virtue of a permanent appointment in any government office, or by election to another public office, his coverage under this Order shall automatically cease and he shall then be covered under the appropriate law.

SECTION 2. In the event of loss of life during a covered official's incumbency whether the cause of death is work-connected or not, the beneficiaries of a Punong Barangay or a member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan shall be entitled to SEVEN THOUSAND PESOS (P7,000.00) while the beneficiaries or a member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer or Chairman of the Kabataang Barangay shall be entitled to FIVE THOUSAND PESOS (P5,000.00). In addition to the death benefits herein provided, a burial benefit of ONE THOUSAND PESOS (P1,000.00) shall be paid to the beneficiaries.

SECTION 3. In the event of total and permanent incapacity or disability as determined by the System, a Punong Barangay or a member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan shall be entitled to FIVE THOUSAND PESOS (P5,000.00) while a member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, or Chairman of the Kabataang Barangay shall be entitled to THREE THOUSAND PESOS (P3,000.00) provided that the disability occurred during his incumbency whether work-connected or not. In addition to the disability benefits herein provided, a burial benefit of ONE THOUSAND PESOS (P1,000.00) shall be paid to his beneficiaries provided that death occurs within one year from the onset of total and permanent incapacity or disability.

Anyone availing of the benefits under this section cannot benefit from Sections Two, Four and Five hereof.

SECTION 4. For injuries resulting from an accident occurring during his incumbency whether work-connected or not, a Punong Barangay or a member of the Sangguniang Panlalawigan, Sangguniang Panlungsod, or Sangguniang Bayan shall be entitled to the following benefits which in no case shall exceed the maximum benefit of P5,000.00 per covered year:

a)	For an injury to the brain resulting in the loss of sanity, FIVE THOUSAND PESOS (P5,000.00);
b)	For permanent loss of sight in both eyes, FIVE THOUSAND PESOS (P5,000.00);
c)	For permanent loss of sense of hearing in both ears, FOUR THOUSAND PESOS (P4,000.00);
d)	For permanent loss of sight in one eye, TWO THOUSAND FIVE HUNDRED PESOS (P2,500.00);
e)	For permanent loss of sense of hearing in one ear, TWO THOUSAND PESOS (P2,000.00);
f)	For the loss or destruction of two or more limbs, FIVE THOUSAND PESOS (P5,000.00);
g)	For the loss of one limb, TWO THOUSAND FIVE HUNDRED PESOS (P2,500.00);
h)	For the loss or destruction of both of his hands at or above the wrist, FOUR THOUSAND PESOS (P4,000.00)
i)	For the loss or destruction of both of his feet at or above the ankle, FOUR THOUSAND PESOS (P4,000.00
j)	For the loss or destruction of one hand at or above the wrist, TWO THOUSAND PESOS (P2,000.00);
k)	For the loss or destruction of one foot at or above the ankle, TWO THOUSAND PESOS (P2,000.00);
l)	For the loss or destruction of every thumb or great toe, SEVEN HUNDRED FIFTY PESOS (P750.00);
m)	For the loss or destruction of every finger or toe, TWO HUNDRER FIFTY PESOS (P250.00);
n)	For any other injury requiring hospitalization of at least forty days ONE THOUSAND FIVE HUNDRED PESOS (P1,500.00) and in cases where the hospitalization is less than forty days, at such amount not exceeding ONE THOUSAND PESOS (P1,000.00) as determined by the Government Service Insurance System and prescribed in its Rules and Regulations issued pursuant to the provisions of this Order; and
o)	For any injury not requiring hospitalization but requiring medical attention for at least fifteen days, FIVE HUNDRED PESOS (P500.00), and in cases where the medical attention extended is less than fifteen days, at such amount not exceeding THREE HUNDRERD PESOS (P300.00) as determined by the Government Service Insurance System and prescribed in its Rules and Regulations issued pursuant to the provisions of this Order.

SECTION 5. For injuries resulting from an accident occurring during his incumbency whether work-connected or not, a member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, or Chairman of the Kabataang Barangay, shall be entitled to the following benefits which in no case shall exceed the maximum benefit of P3,000.00 per covered year:

a)	For an injury to the brain resulting in the loss of sanity, THREE THOUSAND PESOS (P3,000.00);
b)	For permanent loss of sight in both eyes, THREE THOUSAND PESOS (P3,000.00);
c)	For permanent loss of sense of hearing in both ears, TWO THOUSAND FIVE THOUSAND PESOS (P2,500.00);
d)	For permanent loss of sight in one eye, ONE THOUSAND FIVE HUNDRER (P1,500.00);
e)	For permanent loss of sense of hearing in one ear, ONE THOUSAND TWO HUNDRED FIFTY PESOS (P1,250.00);
f)	For the loss of our destruction of two or more limbs, THREE THOUSAND PESOS (P3,000.00);
g)	For the loss of one limb, one thousand five hundred pesos (P1,500.00);
h)	For the loss or destruction of both his hands at or above the wrist, TWO THOUSAND FIVE HUNDRED PESOS (P2,500.00);
i)	For the loss or destruction of both his feet at or above the ankle, TWO THOUSAND FIVE HUNDRED PESOS (P2,500.00);
j)	For the loss or destruction of one hand at or above the wrist, ONE THOUSAND TWO HUNDRED FIFTY PESOS (P1,250.00);
k)	For the loss or destruction of one foot at or above the ankle, ONE THOUSAND TWO HUNDRED FIFTY PESOS (P1,250.00);
l)	For the loss or destruction of every thumb or great toe, FOUR HUNDRED FIFTY PESOS (P450.00);
m)	For the loss or destruction of every finger or toe, ONE HUNDRED FIFTY PESOS (P150.00);
n)	For any other injury requiring hospitalization of at least forty days, ONE THOUSAND PESOS (P1,000.00), and in cases where the hospitalization is less than forty days, at such amount not exceeding EIGHT HUNDRED PESOS (P800.00) as determined by the Government Service Insurance System and prescribed in its Rules and Regulations issued pursuant to the provisions of this Order; and
o)	For any other injury not requiring hospitalization but requiring medical attention for at least fifteen days, THREE HUNDRER PESOS (P300.00) and in cases where the medical attention extended is less than fifteen days, at such amount not exceeding TWO HUNDRED PESOS (P200.00) as determined by the Government Service Insurance System and prescribed in its Rules and Regulations issued pursuant to the provisions of this Order.

SECTION 6. For all the insurance benefits provided under this Order, the national government of the of the Republic of the Philippines shall appropriate annually and include in the General Appropriations Act the total annual premiums based on the actual number of local officials covered under Sec. 1 hereof and as certified by the Department of Local Government. The annual premiums, unless later on adjusted in accordance with the provisions of this section, shall be ONE HUNDRED TEN PESOS (P110.00) for every Punong Barangay and member of the Sangguniang Panlalawigan, Sangguniang Panlungsod or Sangguniang Bayan and FORTY EIGHT PESOS (P48.00) for every member of the Sangguniang Barangay, Barangay Secretary, Barangay Treasurer, and Chairman of the Kabataang Barangay. The Government Service Insurance System shall conduct periodic actuarial studies to determine the adequacy of the contributions as provided herein. Based on such studies, the premiums may be adjusted and the total annual premium based on the adjusted premium rates as certified by the System shall likewise be provided for in the General Appropriations Act for every applicable year thereafter. Provided that any failure or delay in the payment or premiums shall not in any way prejudice the efficacy and enforceability of the insurance benefits herein set forth.

SECTION 7. No Benefit shall be allowed to a covered official or his beneficiaries when the injury, sickness, disability or death was occasioned by any of the following:

1)	his intoxication,
2)	his willfull intention to injure or kill himself or another, or
3)	his notorious negligence

SECTION 8. Whenever other laws provided similar benefits for the same contingencies covered by this Order, the official or his beneficiaries who qualify for such benefits shall have the option to choose which benefit will be paid to them.

SECTION 9. A maximum expense loading of twelve (12) percent of the annual premiums may be disbursed by the Government Service Insurance System for administrative and operations expenses.

SECTION 10. Within one month after the effectivity of this Order, the Government Service Insurance System shall prescribe and promulgate such rules and regulations as may be necessary for the proper implementation of the provisions of this Order.

SECTION 11. Only to such extent as would affect the enforcement of this Order, executive orders, rules and regulations, or a part thereof, inconsistent with this Order are hereby amended or modified accordingly.

SECTION 12. This Order shall take effect immediately

Done in the City of Manila, this 25th day of July, in the year of Our Lord, nineteen hundred and eighty-seven.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary