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Home Region CAR

Councilor Bagayao mulls ordinance requiring contractors to have third-party liability insurance

Iryll Sicnao by Iryll Sicnao
September 7, 2023
in CAR, Region
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TABUK CITY, Kalinga – In light of recent accidents purportedly caused by inadequate safety signages in road construction sites, Councilor Ivan Yannick Bagayao is considering filing an ordinance requiring contractors to have third-party liability insurance to defray financial assistance to victims. 

Bagayao said he will study the viability of adding insurance coverage as one of the requirements of contractors bidding on road projects of implementing agencies including the Lower Kalinga District Engineering Office (LKDEO), Office of the Provincial Engineer (OPE), and the City Engineering Office (CEO). 

“Baka pwedeng compulsory third-party liability para ma-compel sila na etong contractor, if ever lang na merong fortuitous event for that matter, kasi hindi naman nila gustong mangyari yun, tulong din sa contractor yun kasi hindi sila magshe-shellout na agad ng pera, may insurance company na sasalo. Eto yung nakikita ng council na possible measure,” he said. 

“Ikaw na contractor, [in case of accidents] syempre kung may lapses man, at least may insurance na sasalo. Kung wala namang lapses, at least ‘yung feeling mo naman, di ba, humanitarian, nakatulong ka pa rin without shelling out much amount. Sa kabila namang dako, at least ‘yung naaksidente, hindi na siya mamomroblema kung sinong sasagot kasi insured siya,” he added.

However, Bagayao said the legality of such a measure would have to be studied as it might conflict with the Ease of Doing Business Law that mandates government offices to simplify requirements for faster transactions.

“Ang tanong, will it violate the Ease of Doing Business law? Eh sina-suggest naman nila (LKDEO) na mag-submit sila (contractor) ng early warning device to prove na meron nga sila, eh ‘di siguro viable din na dagdagan [‘yung requirements],” he said.

“Pero we are still contemplating kung mas maganda bang ordinance siya or resolution and we will definitely coordinate with the City Legal Office sa kung ano man ‘yung mga batas na pwede nating [basis] para hindi siya half-baked,” he added.

Bagayao’s idea stemmed from the discussion during the Sangguniang Panlungsod’s regular session on Tuesday, August 29, attended by the LKDEO, OPE, and CEO, regarding issues on road safety that were raised by Councilor Marc Rainier Duguiang in his previous privilege speech.

During the session, the LKDEO informed the council that the contractor is strictly responsible for installing road construction signs while the LKDEO tasks a safety officer to monitor the compliance of the construction activity to safety standards. 

The LKDEO said MGSR Construction, contractor of the road project along the national highway in Bacras, Bulanao Norte – the site of several fatal accidents that occurred this month – complied with the mandatory Construction Safety and Health Program (CSHP) prior to implementation of the project. 

The project has also passed its Road Safety Audit by national regulators, according to Engr. Duane Bagayao, LKDEO road safety focal person.

Nevertheless, the agency immediately acted and undertook measures following the accidents, Engr. Bagayao said.

“[Regarding the question,] nu anya ti action ti Lower Kalinga Department of Public Works and Highways idiay napasamak nga aksidente ket, Mr. chair, actually that issue was raised to the office. 

After the incident, in-recalibrate mi diay actual a naka-install a traffic signs, in-review mi. Nu mapansin yu tatta, Mr. chair, nabaliwan ngay, imbes a two-way road diay Bakras, tatta ket nagbalinen a diay left lane going towards Tuguegarao ti mayu-utilize,” Engr. Bagayao said.

The LKDEO expressed openness to the idea of requiring contractors to have third-party liability insurance.

“Siguro ket mayat a suggestion. Actually, baka kayat pay dagituy contractors tayo dayta nga ordinance ngem syempre ti problema, additional expense da. Actually, mabalin met nga i-allow kuma ti department, mayat diyay kuma a mainayun ti items of work,” Engr. Bagayao said. 

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