The MWSS has renewed its liability insurance for its directors and key officers for policy year 2020. The re-insurance with the GSIS’s Directors and Officers Liability Insurance (DOLI) was approved by the MWSS Board through Board Resolution No. 2019-205-CO.
The authority to provide the DOLI for members of GOCCs’ governing Boards and officers is stipulated under Section 32 of the GCG’s Code of Corporate Governance, which states that “it is equitable that when the GOCC itself and/or the members of the Board and Management are sued before tribunals on matters that are within the official functions and capacity and on matters where business judgment has been exercised in good faith, that there be proper recovery of the costs and litigation and the judgment liability imposed.” The said principle was likewise adopted in MWSS Manual of Corporate Governance.
Covered by the liability insurance are the Directors, Management officials, and members of the Bids and Awards Committee. The DOLI ensures that they cannot be personally held liable for decisions and actions taken by them as part of their duties, thus gives them the peace of mind to fulfill their work responsibilities. The insurance also enables the MWSS-CO to plan ahead and minimize risks from adverse claims, compensation of losses by third parties, and cost of fines and other penalties.
Since 2014, the cost of renewal premium MWSS pays to GSIS has not increased. This manifests the confidence the insurer gives premium on the quality of corporate governance, corporate reputation, low risk exposure, and stable finances by MWSS.