How to Apply for GSIS Airport Liability Insurance

The GSIS Airport Liability Insurance is a specialized program offered by the Government Service Insurance System (GSIS).

It provides coverage to protect airport operators, such as the Manila International Airport Authority (MIAA), from financial losses related to accidents, property damage, or injuries that occur on airport premises.

This insurance is designed to shield airports from the financial and legal consequences of such incidents, allowing them to maintain smooth operations.

While the program is primarily funded by the GSIS’s operating budget, those bidding for reinsurance must meet certain criteria and pay applicable fees, such as ₱25,000.00 for the bidding documents.

The coverage typically lasts for one year and is a valuable safeguard for airport operations.

MIAA
Credits: MIAA / Facebook

What is GSIS Airport Liability Insurance For?

The GSIS Airport Liability Insurance is designed to provide financial protection for airports, specifically safeguarding them from risks associated with accidents, property damage, and injuries that might occur within their facilities.

In the Philippines, major airports like the Manila International Airport Authority (MIAA) rely on this insurance to handle claims that could arise from incidents affecting passengers, employees, or other individuals on airport property.

The coverage helps airport operators manage the legal and financial impact of potential liabilities, so that they can continue operating smoothly without facing severe financial losses from lawsuits or compensation demands.

The program is necessary for maintaining safety and security, offering peace of mind that even in the case of unfortunate incidents, airports are equipped to handle the costs associated with legal claims or damages.

GSIS Airport Liability Insurance not only protects the airport’s operations but also promotes a safer environment for the public, knowing that any incident will be properly addressed without compromising the financial health of the facility.

Eligibility

To qualify for GSIS Airport Liability Insurance, applicants and reinsurance bidders must meet specific requirements.

These criteria ascertain that the entities involved are fully capable of managing the financial responsibilities associated with airport operations.

  • Previous Contracts: Bidders need to have completed at least one similar contract in the past five years.

The value of this contract must be at least 50% of the Approved Budget for the Contract (ABC), which amounts to ₱7,230,496.00.

  • Financial Capacity: Applicants must provide their Net Financial Contracting Capacity (NFCC) or a Line of Credit amounting to 10% of the ABC.

This demonstrates the financial capability to undertake the insurance responsibilities.

Requirements

Before submitting your application, it’s important to gather all the required documents.

Here’s what you’ll need:

  1. PhilGEPS Certificate: All applicants must be registered with the Philippine Government Electronic Procurement System (PhilGEPS).
  2. Eligibility Documents: These include proof of financial stability and relevant contract experience.
  3. Bid Security: Depending on the chosen form, you will need to submit a bid security, such as cash or a surety bond.
  4. Technical and Financial Proposals: These proposals outline how the applicant plans to meet the requirements of the insurance contract and provide a detailed pricing structure.

By having these documents in order, you can avoid any delays or complications during the application process.

Application Form

To apply, you will need the GSIS Airport Liability Insurance Application Form.

This form collects important details needed to process your application for airport liability insurance.

You can download the form directly from the GSIS website here.

Make sure to complete the form accurately and submit it along with the required documents.

20150514-Forms-GI-Airport_Liability_page-0001
Sample Form | GSIS website

Step-by-Step Process

Follow these steps to apply for GSIS Airport Liability Insurance:

  1. Attend the Pre-Bid Conference: This conference is an opportunity to understand the insurance requirements and clarify any questions you may have.

It is usually scheduled before the deadline for bid submission.

  1. Submit Your Application: After attending the pre-bid conference, prepare and submit your technical and financial proposals, bid security, and other necessary documents.

Make sure to meet the deadline, as late submissions will not be accepted.

  1. Bid Opening and Evaluation: The bids will be opened publicly, and each will be evaluated based on a pass/fail system.

Only those bids that meet the requirements and stay within the ABC will move forward.

  1. Contract Awarding: The bid with the lowest price that meets all the requirements will be awarded the contract.

The winning bidder will then be required to post performance security and sign the contract within 10 days.

Frequently Asked Questions

  1. Who can bid for the reinsurance of GSIS Airport Liability Insurance?
    Any local or foreign company with relevant experience can bid for the reinsurance of GSIS Airport Liability Insurance. Bidders must have completed one or more contracts of a similar nature within the past five years. The value of these contracts should be at least 50% of the Approved Budget for the Contract (ABC). Bidders also need to meet the required financial capacity as outlined in the current bidding documents.
  2. How long does the coverage period last for GSIS Airport Liability Insurance?
    The coverage period for GSIS Airport Liability Insurance typically lasts for one year. For example, the insurance period for the current bidding cycle may run from July 1, 2024, to June 30, 2025. Specific coverage dates are always listed in the latest bidding documents.
  3. Is there a penalty for late submission of bids?
    Yes, late submissions will not be accepted. All bids must be submitted before the specified deadline, as late bids are automatically disqualified. It is strongly recommended to submit documents early to avoid any last-minute issues or delays that could lead to disqualification.

Conclusion

Applying for GSIS Airport Liability Insurance is a straightforward process if you follow the steps carefully.

Make sure you meet the eligibility criteria, gather all the required documents, and attend the pre-bid conference to get any clarifications.

By submitting your forms and bids on time, you increase your chances of securing this valuable insurance coverage.

This program provides much-needed protection for airport operators, helping them manage financial risks related to liabilities, accidents, and property damage.

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