ANGELES CITY --- A city councilor here has underscored that public welfare allegedly pushed him to amend the Commercial/Public General Liability (CGL) ordinance which imposes mandatory insurance coverage to business establishments in the city.
Councilor Amos Rivera issued the statement in reaction to claims that the implementation of the ordinance will open the floodgates of corruption.
“The mandate of the council is legislate [laws] in the promotion of the welfare of the public,” Rivera said.
The official added that it is inherent in the powers of the local government unit to regulate business establishments. “There are accidents but are not documented by the media and the city government and the business owner will suddenly say that they have no liability.”
After a research, the city councilor said he discovered that the Sangguniang Panlungsod has approved the CGL ordinance in 1997. “It was basically the same.”
Businessman Ruperto Cruz, head of the advocacy group Pinoy Gumising Ka Movement (PGKM), has vowed to initiate the filing of class action lawsuit against the city officials in connection with the enforcement and implementation of the ordinance.
Rivera earlier claimed that businessmen in the city support City Ordinance Number 398 Series of 2016 or the Commercial/Public General Liability (CGL) Insurance.
The city councilor said that the ordinance will give protection to the businesses in case of accidents.
“Since 1997, it (CGL insurance) was already an ordinance and was subsequently amended in 2002, 2012, and 2016. And as matter of procedure, it was published in local circulation. As a matter of fact, all councilors approved the ordinance and there are no formal complaints, as of today, were given. In fact, a lot of business owners liked the ordinance since it will give them protection to their customers in case of accidents,” Rivera said.
Section 3A.07 states that sari-sari stores, carinderias, fish/ meat/ vegetable/ fruit vendors, flower shops, newspaper and magazine stands, shoe shine stands, watch repair shops, and similar establishments with capital of not more than P150,000 are exempted from the ordinance.
The ordinance also exempts establishments with fixed taxes in the amount of P1,800 as provided in the Local Government Code such as clinics, dental clinics, accounting offices, and law offices but shall not include warehouses, showrooms, hospitals and schools.
There are some 150 low-capital establishments exempted in the ordinance, it was learned.
Participating insurance companies include Standard Insurance Company, Incorporated; Western Guarantee Corporation; Pacific Union Insurance Company; and Liberty Insurance Corporation.
Only corporate checks and cash are accepted by these companies, based on the ordinance.
An establishment with P300,000 sum insured is required to pay total premium of P1,570. A business with P7 million sum insured on the other hand is required to pay a total premium of P22,985.
“The CGL is a standard insurance policy issued to business organizations to protect them against liability to third parties claims for bodily injury and property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability.”
Examples of injuries covered in the insurance policy include slip on the floor, accidental falling of debris on third party, food poisoning, falling of signages to third party, breakage of glass door or windows that resulted to injury and damage to third party, and others.