Senator Jinggoy Ejercito Estrada is pushing to expand the compulsory insurance coverage for agency-hired overseas Filipino workers (OFWs) to also include rehires, direct hires and government hires.
Such insurance policy should be at no cost to OFWs, Estrada stressed in filing Senate Bill No. 2948 seeking to amend the provisions of Republic Act No. 8042, or the Migrant Workers and Overseas Filipino Act of 1995.
Estrada’s proposed amendment will guarantee financial security to OFWs and their families during life-altering events and accountability among recruitment agencies, as well as foreign employers.
“Kadalasan, ang mga kababayan nating OFWs ang breadwinners ng kanilang pamilya. Malaking tulong ito sa kanila kung malalagay sila sa isang medical emergency, may danyos o benepisyong hindi binabayaran ng employer o gastusin gaya ng repatriation cost. Proteksyon ito ng mga OFWs at ng kanilang pamilya sa mga posibleng problema na maaari nilang harapin habang nagtatrabaho sa ibang bansa,” the Senate leader said.
SB 2948 will establish strict criteria for insurance providers and ensure that insurance policies will cover the entire duration of the OFW’s’ employment, unless otherwise specified in the policy.
Only reputable insurance companies that are duly registered with the Insurance Commission (IC) and have been in existence for at least five years will qualify. Additionally, all providers must digitize their services, the proposed legislation also states.
Private recruitment and manning agencies will be required to provide comprehensive insurance to OFWs at no cost to them, while foreign employers will also be mandated to offer insurance as part of their employment contracts, Estrada said.
He likewise said that to prevent fraudulent insurance schemes and protect OFWs from illegitimate providers, the Department of Migrant Workers (DMW) and the Insurance Commission (IC) shall implement a verification system to validate the legitimacy of all issued digital policies and oversee compliance.
The bill also stipulates that principal employers and recruitment agencies must assist in processing claims and submitting insurance certificates for Overseas Employment Certificates (OECs). The liabilities of insurance companies are limited to unpaid salaries, and non-compliant providers may face penalties.
“This is a significant step forward in safeguarding OFWs, ensuring they are supported and protected in the face of evolving risks and challenges, while the government maintains its responsibility to its citizens working abroad,” Estrada said.
