Human Resources Policy and Procedure Manual

1 Page 1 of 33 Human Resources Policy and Procedure Manual Table of Contents Human Resources Policy and Procedure Manual .. 1 Welcome .. 2 Our Company .. 3 What We Do .. 4 Coyiuto Group of Companies .. 5 Our Corporate Mission .. 6 Your employment .. 7 Compensation and Scheme .. 10 Timekeeping Policies .. 12 Wearing of ID Cards .. 16 Business Environment .. 17 Employee Orientation .. 20 Training & Development .. 21 Occupational Health & Safety .. 23 Conflict of Interest .. 25 Company Records .. 27 Telephone Handling .. 28 Personal Matter .. 29 Employee Services .. 30 Management Rights .. 31 Prudential Guarantee and Assurance Inc. - Policies and Declaration .. 32 Page 2 of 33 Welcome Congratulations on your appointment and welcome to PRUDENTIAL GUARANTEE AND ASSURANCE INC. (PGAI)! We are excited that you have decided to join us and look forward to a long, happy and successful partnership together. Our business is primarily about Non-Life Insurance.

2 You have been hired because we believe you can help us to deliver these high levels of customer satisfaction. We want to ensure that your interactions with other PGAI employees and our customers will reflect the value that PGAI places on our commitment to superior customer service. The purpose of this Manual is to introduce you to the environment of PGAI, give you some information about our history, our clients and what we do. You will also find information about the terms and conditions of your employment, our expectations around your behavior and our policies and procedures . This Manual should be read in conjunction with your Contract of Employment. This Manual is by no means an exhaustive guide to your employment with us. It has been developed to act as a resource and reference for you. The policies within this Manual are easily listed and easily accessed via the contents page. This Manual will be updated as required as our business evolves and grows.

3 You will be notified of any changes as they occur. If you have any questions about the content please do not hesitate to contact Human resource Management Department. Page 3 of 33 Our Company Founded and organized by the late Robert Coyiuto, Sr., a veteran insurance man and the first Filipino to become a member of the prestigious Lloyds of London, Prudential Guarantee's gross premiums have now reached almost PHP7 billion, making it one of the largest non-life insurance companies in the Philippines. The company's operations nationwide have also expanded with 36 offices now operating in key cities and provinces, with several more scheduled to open. Through superior technical knowledge, innovative marketing and excellent service, Prudential Guarantee handles more than 150,000 clients, many of who belong to the country's top 1,000 corporations. We have also, over the years, grown to be quite active in the international reinsurance market, underwriting millions of dollars worth of business with the big reinsurance houses of Europe through an elaborate network of insurance brokers.

4 In 1991, Prudential Guarantee has successfully entered into a joint venture with Sompo Japan Insurance Inc. (formerly Yasuda Fire and Marine Insurance Company, Ltd.), one of the first fire insurance organizations in Japan and one of the top 10 non-life insurance companies in the world, to form PGA Sompo Japan Insurance Inc. (formerly PGA Yasuda Insurance Company, Inc.) PGA Sompo Japan is now a highly successful organization, servicing the insurance needs of numerous multinational companies based in the Philippines. Today, Prudential Guarantee led by its Chairman and Chief Executive Officer Robert Coyiuto, Jr., continues to provide its clients with cost effective protection through innovative and responsive insurance programs upheld by proactive settlement of claims. Page 4 of 33 What We Do At Prudential Guarantee and Assurance Inc. we provide the following products and services to our clients: Fire Insurance and Allied Perils Motor Vehicle Insurance Engineering Insurance Contractor All Risk (CAR) Insurance Erection All Risk (EAR) Insurance Machinery Breakdown and Boiler Insurance Electronic Equipment Insurance (EEI) Business Interruption Following Machinery Breakdown (BI) Insurance Casualty Insurance Property Floater Insurance Money, Securities & Payroll (MSP) Insurance Comprehensive General Liability (CGL) Insurance Comprehensive Dishonesty, Disappearance & Destruction (DDD)

5 Insurance Fidelity Guarantee Insurance Bankers Blanket Bond Professional Liability Insurance Director s and Officers Liabilities Aviation Insurance Aviation Hull Insurance Aviation Liability Insurance Hangar s Liability Airport Liability Marine Insurance Marine Cargo Insurance Merchandise Floater Marine Hull Insurance Protection & Indemnity Cover Suretyship/ Bonds Surety Bond Performance Bond Judicial Bond Fidelity Bond Accident and Health Insurance Personal Accident (PA) Insurance Medical / Hospitalization Insurance Keyman Accident Protector Student s Personal Accident Travel Accident Protector Special Insurance Event Cancellation Works of Art Business Interruption Page 5 of 33 Coyiuto Group of Companies Page 6 of 33 Our Corporate Mission Prudential Guarantee and Assurance Inc. is committed to be a world-class non-life insurance organization providing its clients cost-effective protection through innovative and responsive insurance programs upheld by proactive settlement of claims; nurturing its broker, agent and reinsurer relationships; affording quality life for its employees and fostering teamwork, competence, professionalism and excellence among its service-oriented workforce as a responsible partner of the insurance industry and an exceptional corporate model actively involved in national development while pursuing its profit goals.

6 Page 7 of 33 Your employment Your employment with Prudential Guarantee and Assurance Inc. (PGAI) is essentially governed by your contract of employment, PGAI's Policies, in conjunction with this Manual . The following section provides general information regarding your pay, conditions and our expectations of you. General Policy Prudential Guarantee and Assurance Inc. has made it a strict Policy to hire individuals solely on the basis of their qualifications. No individual shall be barred from employment in the Company because of nationality, color or religious belief, provided that this is in conformity with the policies of the Philippine government. Only where the national interest so demands will Prudential abrogate this Policy . Employment Requirements Minimum employment requirements must include a college education and a good moral character. In addition, the individual should not be related to any officer or employee within the second degree of consanguinity or affinity.

7 Any potential employee of Prudential must go through some screening process to assess his mental, physical and moral fitness for the position applied for. The Company may require him to make mental aptitude and personality tests to find out whether he/she meets the basic standard of requirements of the job. Otherwise, interviews may suffice. Physical fitness of the applicant will be determined through a thorough physical check-up by the Company's accredited provider. It is absolutely required that the applicant pass this physical examination before final approval of his application. Scheduling the details of all examinations will be provided by the Human resource Management Department. The Company may require prospective employees to secure police and NBI clearance and/or references from previous employers or supervisors. These are deemed necessary whenever the good moral character of the individual is of paramount importance to the job.

8 Probationary Period During the first six (6) months service with the Company, an employee will be considered to be on probation. During this period, the employee's performance must be under continual evaluation by his immediate supervisor. At the end of the probation, the employee's date of employment will revert to the date on which the probation period began. For the duration of the probationary period, an employee is subject to dismissal by his Department Head for cause and without notice at any time. However, the Human resource Management Head must be consulted prior to implementing such dismissal in order to avoid any legal complications under existing Labor laws. Prior to any dismissal that could eventually involve complications, a final analysis of the case will be made by the Human resource Management and Top Management. Page 8 of 33 Personnel Records For various reasons, it is important that personnel records must contain accurate and up-to-date personal information on each employee.

9 Any change in the marital status and the number of children in the immediate family of the employee should be reported promptly. This information has a direct bearing on the amount of payroll deductions for withholding tax, SSS, Medicare and other fringe benefits. Any change in the telephone number or address should also be reported promptly. If an employee has furthered his education, he is urged to have this recorded in his personnel folder. This will be helpful in determining his qualifications for promotion or transfer within PGAI. Promotion Promotion is defined as an advancement of elevation into higher level either in position and pay classification, or an increase in salary or both. It is a manifestation of management's recognition of the capability and potential as well as the exemplary performance of the employee. The candidates shall be processed according to educational background, work experience, performance record, abilities and potentials.

10 The Human resource Management Department and Top Management deliberates on the merits/demerits of the recommendees and shall render the final decision on the matter. An employee offered a promotion may refuse without prejudice to his position. Resignation All employees, except those on probationary status, are requested and expected to give thirty (30) days' notice before the effective date of resignation. All such notices are to be in writing and are to state termination dates. They will also give reasons for resigning as clearly as possible. Failure to comply with this requirement will result in the forfeiture of all encashable and accrued benefits such as vacation leave and sick leave credits and retirement benefits for those who have served PGAI for at least five (5) years. The resigning employee must also accomplish the request for clearance form which shall be provided by the HRMD upon the processing of the resignation.