THE Government Service Insurance System (GSIS) submitted a proposal to the Cebu Province in 2017 to insure barangay workers, an official from the agency said.
The development runs counter to the claim of Cebu Gov. Hilario Davide III that the Capitol cannot avail itself of GSIS insurance services on the ground that barangay workers are not regular government employees.
Mitos Galicinao, GSIS Cebu frontline services officer, said under Republic Act 656 or the Property Insurance Law, GSIS can cover non-life insurance package as optional for barangay tanods (village watchmen), barangay health workers and nutrition scholars.
Galicinao said with only a P24 premium per person a year, it can avail of P30,000 coverage in case of death due to accident, P3,000 medical refund and P10,000 burial assistance.
This premium is cheaper than what Capitol would pay, which is P220 per worker, to get coverage of P25,000 in case of the worker’s death under the present contract with a private firm.
She said even if barangay workers like village watchmen are not considered regular government workers, GSIS has an insurance coverage for this particular group which they call “group personal accident insurance.”
“It will depend on the head of office or head of agency if they have savings for that purpose; GSIS can allow it,” Galicinao told Superbalita Cebu in Cebuano.
In fact, Galicinao said, as early as 2017, GSIS submitted a proposal addressed to Provincial Health Officer Dr. Rene Catan for as low as P18 annual premium to P90 annual premium.
She said she did not get a response from Catan until now.
Earlier, Davide said Capitol availed of the policy offered by Fortune Life Insurance Company Inc. (Flici) because GSIS does not have a policy for volunteers or non-regular government workers.
He said if Cebu governor-elect Gwendolyn Garcia questions the transaction, she can review the provision upon her assumption to office at the end of June.
“Gi-bid man na. Wala man na gikuha lang. Dugay na na-bid, even before elections. Kung gusto gyud nila reviewhon na, inig lingkod na nila (That went through a bidding process, it wasn’t chosen just because. The bidding was done even before the elections. If they really want to review it, they may do so when they assume office),” he told reporters.
Davide said he already signed a notice of award to Flici after it passed the bidding process initiated by the Bids and Awards Committee.
Last April 15, 2019, the Provincial Board approved a resolution filed by Board Member Jose Mari Salvador giving Davide the authority to enter and sign a contract with Flici for the provision of a life and accident insurance to 27,300 community volunteer workers.
Under the Flici coverage, barangay frontliners will receive P25,000 in case of death and P2,500 in case of accident.
Lowest bidder
Flici gave the Lowest Calculated and Responsive Bid (LCRB) in terms of providing life and accident insurance for the 27,300 community volunteers in Cebu.
There were four bidders who filed their bids, including Flici, on Jan. 4, 2019, but all of them failed. The bidders then asked for reconsideration and were given three days to submit their motion.
Last Jan. 11, 2019, all reconsidered bids were opened and after evaluation and post-qualification, it was Flici that was found “responsive to the bid amount” of P220 per person for the 27,300 barangay workers or a total amount of P6,006,000. This is 21.43 percent lower than the Actual Bid Cost of P7.644 million.
‘False assertion’
In a press release issued Wednesday, May 29, lawyer Frank Eduard Dinsay V, a member of Garcia’s transition team, said he “takes exception to outgoing governor Davide’s false assertion that ‘GSIS only caters to the needs of regular employees.’”
Dinsay said Davide only needs to check with the Provincial Health Office to know that barangay tanods, health workers and nutrition scholars were already covered by insurance by the Province during Garcia’s stint as governor from 2004 to 2013.
Galicinao said during Garcia’s term, a P24 premium had a P20,000 coverage for death due to accident, P2,000 medical reimbursement and P10,000 burial assistance.
“I am not insinuating anything but the public knows that, unlike the GSIS, private insurance companies give fat commissions to agents. You do not have to be a rocket scientist to know that the P6 million premium to be paid by the Provincial Government to a private insurance company has a commission complement that will go to the pocket of an agent or finder. The Provincial Government will save a lot if there is no commission. I hope Davide will reconsider his decision on the matter,” Dinsay said. (from SCG of SuperBalita Cebu/RTF/VLA)