Gov. Gwen Garcia is looking into the possibility of creating a so-called self-insurance system for Capitol employees and infrastructure assets by creating a trust fund.
This comes after the governor found out that Capitol is on a “disadvantageous” end of a deal in its current insurance relationship with the Government Service Insurance System (GSIS).
The trust fund is where Capitol will put its capital for the insurance premiums of its employees, including those for accident and life.
Aside from its employees, Capitol has also insured all officials of its component cities, municipalities, and the barangays; as well as barangay volunteer workers.
Also covered by the GSIS insurance paid for by the Capitol are DepEd Cebu Province’s teaching and non-teaching personnel, as well as Parent-Teacher Association officials in every DepEd school in the province.
In a meeting on February 7, Gov. Garcia asserted that the claims issued to those insured by Capitol, particularly accident and life insurance, are way lower than the total premiums paid by the Provincial Government.
Thus, it becomes disadvantageous, she pointed out.
For instance, only about P10 million of the total P81 million worth of claims applied by Capitol for infrastructure damages due to Supertyphoon Odette in 2021 was released by GSIS.
Because of this, the governor decided for Capitol to exit from its insurance affiliation with GSIS.
To realize this, the Provincial Board needs to pass an ordinance that will authorize the Provincial Government to create this self-insured system for its employees.
The meeting was well welcomed by Provincial Board Members Jonkie Ouano and Raymond Calderon who were joined by various Capitol department heads. | Carlo Lorenciana