What is REPUBLIC ACT No.7160?

An Act providing for a Local Government Code of 1991 duly approved by the Senate and the House of Representatives on their Fifth Regular Session held in Metro Manila on Monday,the Twenty-first day of July,nineteen hundred and ninety-one.

Section 1 This Act shall be known and cited as the Local Government Code of 1991 ( p1 )

Section 2 General Welfare Every Local Government Unit shall exercise the powers expressly granted, those necessarily implied there from, as well as power necessary, appropriate, or incidental of its efficient and effective governance, and those which are essential to the promotion of general welfare. ( p6 )

HOW CAN BARANGAY OFFICIALS BENEFIT FROM R.A. 7160?

Under Section 447 and 458, Subpa ( a ) ( i ) ( xiii ) state that Provide for group insurance or additional insurance coverage for Barangay Officials, including members of Barangay Tanod, and their Service Units with PUBLIC or PRIVATE INSURANCE COMPANIES when the finances of the City / Municipality allow said coverage ( p143 & 157 )

WHAT IS OUR PROOF / GUARANTEE THAT EVERY BARANGAY CAN USE THEIR ANNUAL BUDGET FOR PAYING THEIR INSURANCE ANNUAL PREMIUM?

A Private Company was awarded an insurance contract by the COMMISSION ON AUDIT (COA) stating that: WHEREFORE, in view of all the foregoing consideration, the instant request is given due course. Accordingly this Commission hereby directs the Auditor, Makati City to lift the audit Disallowance in the amount of P2,123,510.00 representing payment of Insurance coverage with Pension Plans to officials and employees of Barangay San Lorenzo, same city.

WHO ARE THE BARANGAY OFFICIALS? Book III ( Local Government Units ), Title One (The Barangay), Chapter 2 ( Barangay Officials and Offices), Section 387- states that: (a) There shall be in each Barangay a Punong Barangay, seven (7) Sangguniang Barangay Members ( or Kagawad ), the Sangguniang Kabataan Chairman, a Barangay Secretary, and a Barangay Treasurer. (119 120 )

WHO ARE ELIGIBLE FOR INDIVIDUAL INSURANCE MEMBERSHIP?

Section 393 Benefits of Barangay Officials, Para ( b ) states that: The Punong Barangay, the Sangguniang Barangay Members, SK Chairman, Barangay Treasurer and Barangay Secretary shall also: Subpara ( 2 ) Be entitled during their incumbency to insurance coverage which shall include, but shall not be limited to, temporary and permanent disability, double indemnity, accident insurance, death and burial benefits. (p123)

WHO WILL PAY THE INSURANCE ANNUAL PREMIUM OF THE BARANGAY OFFICIALS?
The annual premium of the Barangay Officials shall be appropriated from their Personal Services which is 55% of the Annual Budget ( 107 ) covered by a Barangay Resolution signed by all Sangguniang Barangay members and duly approved by the Punong Barangay.

WHO WILL SHOULDER THE ANNUAL PREMIUM OF THESE BARANGAY SERVICE UNITS?
Section 393 Benefits of Barangay Officials ( p123 ) Para (d) all duly appointed members of the Barangay Tanod Brigades, or their equivalent, shall be granted insurance or other benefits during their incumbency, chargeable to the Barangay or to the City / Municipality government to which the Barangay belongs ( p123 )

COA OPINION 2000 001

Payment by the government for such insurance coverage shall only be for the duration of the Barangay Officers term of office. Should said Barangay Officials or members would still want to continue availment of the benefit even after their term of office, premium payments therefore should already come from their personal funds. Thus, permanent insurance coverage where the Barangay will shoulder payment of the premiums after term of office will not be feasible.

DILG OPINION No. 83, SERIES OF 1998, DATED MAY 27, 1998:
Dept. of Interior and Local Government clearly states that: It is their considered opinion that other than the GSIS. B arangay Officials could be insured with PRIVATE INSURANCE COMPANIES, provided, however, that the same is fully covered by appropriate Sanggunian Ordinance / Resolution and subject, further, to the availability of funds and the budgetary limitations prescribed for under Section 325 ( a ) of the Code. This was signed by HON. CELSO D. GANGAN, Chairman. Copy furnished the Office of the Director, Local Government Audit Office.