SEC. 12. Section thirty of the same Act, as amended, is further amended to read as follows:
"SEC. 30. Security for payment of workmen's compensation.—Employers shall secure the payment of compensation and other benefits to their employees or laborers and their dependents:
"(1) By insuring and keeping insured the full payment of such compensation and other benefits with an insurance company authorized to do business in the Philippines; or
"(2) By furnishing satisfactory proof to the Bureau of Workmen's Compensation of their financial ability to shoulder such liabilities directly in accordance with paragraph one hereof. An employer securing payment of such liabilities in accordance with this paragraph shall be known as self-insurer.
"a. Where the employer secures his liability for payment of workmen's compensation under paragraph one of this section, the premiums of the policy shall be paid in their entirety by said employer and any contract or device for the deduction of any portion thereof from the wages of the employees or laborers shall be null and
void.
"b. Every employer who has secured the payment of compensation to his employees and their dependents in accordance with the provisions of this section shall post and maintain in a conspicuous place or places in and about his place or places of business written or printed notices in a form prescribed by the Bureau of Workmen's Compensation stating that he has complied with all the rules and regulations of said Bureau under the law and that he has secured without cost to the employees the payment of compensation and other benefits to them and their dependents.
"c. Every contract for the insurance of the liabilities herein provided for shall be deemed to be made subject to the provisions of this Act, and provisions thereof inconsistent with this Act shall be null and void. Such contract shall be construed to grant full coverage of all liabilities of the assured under and according to the provisions of this Act notwithstanding any agreement of the Parties to the contrary.
"d. No policy or contract of insurance stated above shall be can celled within the policy period nor terminated upon the expiration date without a written notice having been previously given to the Bureau of Workmen's Compensation and to the assured, stating the date on which contract is proposed to be cancelled, or declaring that the insurance carrier or the employer does not intend to renew the policy upon its expiration without the prior approval of the Bureau of Workmen's Compensation. No such cancellation or termination shall be effective until after thirty days from the service of such notice, unless it can be shown that the employer has obtained a new policy with another insurance carrier or has obtained authority from the Bureau of Workmen's Compensation to become self-insurer under paragraph two of this section.
"e. The acceptance of a premium on a policy securing compensation liability to any employee or laborer or his dependents shall stop the insurance carrier so accepting from pleading that the employment of such employee or laborer is not covered by this Act.
"f. Every policy of insurance issued under this section shall contain a provision that, as between the employee and the insurance carrier, the notice to or knowledge of the occurrence of the injury or accident on the part of the employer shall be deemed notice or knowledge, as the case may be, on the part of the insurance carrier; that jurisdiction over the employer is jurisdiction over the insurance carrier; and that the insurance carrier shall in all things be bound by and subject to the orders, findings, decisions or awards rendered against the employer for the payment of compensation under the provisions of this Act. Every such policy shall also contain a provision to the effect that the insolvency or bankruptcy of the employer shall not relieve the insurance carrier from the payment of compensation for injury, illness or death sustained by an employee during the life of such policy.
"g. Where the sole issue raised by a carrier in any hearing or proceeding before the Workmen's Compensation Commission is policy coverage and an appeal is taken by the carrier, although the award is made in favor the claimant therein against the employer and the carrier, the Commission may, nevertheless, require the employer to deposit the amount of said award or furnish such security therefor as may be deemed satisfactory by the Commission. If the employer shall fail to make such deposit or give such security, the award may be enforced promptly against said employer in accordance with the provisions of Section fifty-one of this Act. In the event that the award made against the carrier is finally affirmed, the employer shall be entitled to the return of said security deposited or, if the said award has been paid, to an award by way of reimbursement against the said carrier for the amount of money paid upon the award or decision thereon to the claimant. If the award against the carrier is finally reversed on appeal, then the carrier is relieved of liability.
"h. If any insurance company licensed to transact the business of workmen's compensation insurance shall fail promptly to pay claims for which it shall become liable or if it shall fail to make reports to the Bureau of Workmen's Compensation when so required, the Bureau may recommend to the Insurance Commissioner, that the license of such company be revoked, setting forth in detail the reasons for its recommendation. The Commissioner shall thereupon furnish a copy of such report to the insurance company concerned and shall set a date for a hearing, at which both the insurance company and the Bureau of Workmen's Compensation shall be afforded an opportunity to present evidence. If after such hearing the Commissioner is satisfied that the insurance company has failed to live up to all its obligations under the provisions of this Act, he shall promptly revoke its license, otherwise he shall dismiss the complaint.
"i. An employer who desires to insure his liability for payment of workmen's compensation in accordance with Paragraph (2) of this section shall obtain prior authorization from the Bureau of Workmen's Compensation and, as a condition to the granting of such authorization, the Bureau shall require such employer to deposit with the bureau an indemnity bond or such other securities of a kind and in an amount to be determined by the Bureau. The securities so deposited shall be subject to such rules and regulations as the Bureau may prescribe which shall include authorization, in case of default, to sell any such securities sufficient to pay compensation awards, orders or decisions.
"j. The bureau may revoke at any time the authorization granted to any employer under the preceding paragraph upon the failure of such employer to promptly pay claims for compensation for which he shall become liable or upon a showing that he is no longer in a financial position to pay the compensation to the claimant directly. Where such authorization has been revoked, the employer shall insure his liability for payment of workmen's compensation with any insurance company authorized to transact business of workmen's compensation insurance in the Philippines.
"k. Any employer coming within the coverage of this Act who fails to insure his liability under the Act in accordance with the provisions of this section shall, upon conviction, be punished by a fine of not less than one thousand pesos nor more than five thousand pesos or by imprisonment of not less than six months nor more than one year or by both such fine and imprisonment; but where the employer is a corporation, the president, secretary and treasurer shall be jointly and severally liable for such fine or imprisonment as provided herein and for any compensation and/or other benefits which may accrue to any worker of such corporation.
"l. In cases where the fine prescribed above is imposed the court rendering judgment shall, within fifteen days from the payment thereof, remit to the Workmen's Compensation Fund one-half of the fine so imposed.
"m. The Director of the Bureau of Workmen's Compensation shall within sixty days from the approval of this Act adopt such rules as may be necessary to carry out the provisions of this section."