GUIDELINES IN THE ACCREDITATION IN THE DPWH OF SURETY AND INSURANCE COMPANIES/CORPORATIONS

I.
RATIONALE

To provide safeguards to ensure that only reputable and financially
qualified insurance and surety companies and their re-insurers shall
be authorized and allowed to do business with the DPWH.

II.
COVERAGE

The accreditation shall cover all surety and insurance companies,
including their re-insurers, nationwide, doing business with the DPWH.

III.
CREATION OF AN ACCREDITATION COMMITTEE AND ITS TWG

A committee on accreditation shall be created to receive, evaluate,
process and recommend approval or disapproval of all applications for
accreditation. The POCW/Bureau of Construction, as the Technical Working Group, shall assist the said Committee.

IV.
DEVELOPMENT OF THE ACCREDITATION SYSTEM

The Monitoring and Information Service in coordination with the
Committee, shall develop an accreditation system similar to the POCW’s
National Civil Works Contractors Registry which shall be used in the
monitoring of the profile and financial capabilities of surety and
insurance companies who shall be doing business with the DPWH.

V.
ACCREDITATION REQUIREMENTS

V.a. Qualifications:

To be able to do business with the DPWH, the surety and insurance company must possess the following qualifications:

V.a.1 must have a minimum paid-up capital of five hundred million (P500M); and

V.a.2 must have been in the surety or insurance business for at
least ten (10) years prior to the date of its application for
accreditation.

V.b. Documentary Requirements

The surety and insurance companies applying for accreditation shall
submit the following updated documents to the Committee on
Accreditation:

V.b.1 Legal Documents

a. DTI/SEC Registration Certificate together with Articles of Incorporation and By-Laws;

b. Current mayor’s permit/city or municipal licenses;

c. Tax Clearance Certificate of the current year;

d. Statements under oath of the surety or insurance company’s authorized representative stating that:

d.1 It is not blacklisted or barred from engaging in business
with the government or any of its agencies, offices, corporations or
LGUs including non-inclusion in the consolidated blacklisting report
issued by the Office of the Insurance Commission (OIC);

d.2 It has no unsettled money claims to any government
office/agency or instrumentality, national or local as well as any
private entity;

d.3 It is not facing any litigation in regular courts or any
administrative bodies arising from non-compliance of its obligation
under any issued bonds or insurance policy using the prescribed form;
and

d.4 Each of the documents submitted in satisfaction of the
accreditation requirements are authentic or a true and faithful
reproduction of the original copy, and that all statements and
information provided therein are true and correct;

e. Names of agents (corporation, partnership or sole/single
proprietorship) approved by the Office of the Insurance Commission
including their Articles of Incorporation/Partnership and By-Laws, SEC
Registration Certificate and in case of sole proprietorship, Bureau of
Domestic Trade Registration Certificate, if any;

f. Name/s of re-insurer/s including their Articles of
Incorporation/Partnership and By-Laws, SEC Registration Certificate and
in case of sole proprietorship, Bureau of Domestic Trade Registration
Certificate, if any; and

g. Board Resolution in case of a Corporation or Special Power of
Attorney in case of single proprietorship authorizing DPWH to verify any
or all documents submitted for accreditation.

V.b.2 Financial Documents:

a. Audited Financial Statements stamped received by the BIR for the last three (3) years; and

b. Amount of exposure of the Applicant Surety or Insurance
Company and its re-insurer, supported by details at the time of the
filing of the application for registration.

V.b.3 Processing/Accreditation and Renewal Fee:

Processing/Accreditation and Renewal Fee shall be in the amount
of Five Thousand Pesos (P5,000) which shall be imposed for every surety
or insurance company/re-insurer.

VI.
PROCEDURE FOR ACCREDITATION:

VI.a Submission of duly accomplished Accreditation form with complete
documentary requirements to the Committee on Accreditation together
with the payment of the non-refundable processing/accreditation fee;

VI.b Evaluation and validation of said application for accreditation; 

VI.c Recommendation of the Committee on Accreditation;

VI.d Approval/Disapproval by the Secretary;

VI.e In case of renewal for Accreditation, the concerned Surety and
Insurance Company/ Corporation shall submit the duly accomplished
renewal form together with the payment of the renewal fee for evaluation
and approval; and

VI.f All applications and renewals for accreditation with complete
and valid requirements shall be forwarded to the Office of the Secretary
within Fifteen Calendar Days (15 C.D.) from the date of application for
approval/disapproval.

VII.
GROUNDS FOR DISQUALIFICATION

VII.a Submission of forged or spurious documents in connection with
the surety or insurance company application for accreditation without
prejudice to whatever any legal action the DPWH may file against the
applicant to protect its interest; and

VI.b Failure to comply with its obligation under the bond or
insurance policy issued by it with valid and lawful cause upon demand
without prejudice to whatever any legal action the DPWH may file against
the applicant to protect its interest.

VIII.
RESERVATION CLAUSE

The DPWH reserves the right to suspend or cancel the accreditation of
the surety or insurance company should the DPWH find after due
investigation that the surety or insurance company’s accreditation was
acquired through fraud, misrepresentation or submission of any false
information or the capability of the surety or insurance company to
comply with its obligation has significantly diminished.

IX.
EFFECTIVITY CLAUSE

These guidelines shall become effective after fifteen (15) days of
their publication in a newspaper of general circulation or in the
Official Gazette.

Adopted: 20 Jan. 2009

(SGD.) HERMOGENES E. EBDANE, JR.
Secretary