Amending Migrant Workers and Overseas Filipino Act (Compulsory Insurance Coverage)

FEIN ¿- Offier of i! a TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session ) AUG -4 P5:39 SENATE RECEIVED BY: S. No._ 855 Introduced by Senator Jinggoy Ejercito Estrada AN ACT FURTHER AMENDING REPUBLIC ACT NO. 8042, ALSO KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995, AS AMENDED BY REPUBLIC ACT NO. 10022 TO ENHANCE PROTECTION AND WELFARE STANDARDS FOR MIGRANT WORKERS THROUGH EXPANDED COMPULSORY INSURANCE COVERAGE EXPLANATORY NOTE Overseas Filipino Workers (OFWs) face unique challenges and vulnerabilities, including risks of accidental injury, illness, wrongful termination, and emergencies. The amendment to Republic Act No. 8042 strengthens the government's commitment to safeguarding OFWs by expanding compulsory insurance coverage, ensuring immediate assistance without financial burdens. By requiring recruitment agencies or foreign employers to shoulder insurance costs, the principle of "no cost to the worker" is upheld, reinforcing the protection of OFWs during times of hardship. These provisions provide financial security to OFWs and their families during life-altering events, reflecting their vital contributions to the economy. Additionally, subsistence allowances for workers involved in legal disputes ensure they can pursue justice without enduring undue financial hardship. The suggested legislation sets a strict criteria for qualified insurance providers, requiring them to meet a minimum capitalization threshold and maintain ethical

practices. Regular assessments by the Insurance Commission (IC), along with the option to blacklist non-compliant insurers, promote accountability, discourage unethical behavior, and build confidence in the system. By enhancing protections and instituting a comprehensive insurance package covering all stages of the deployment cycle, the amendment reinforces the country's commitment to international labor standards. This demonstrates a dedication to upholding migrant workers' rights and addressing exploitation and hardship. In sum, the proposed bill represents a significant step forward in safeguarding OFWs, ensuring they are supported and protected in the face of evolving risks and challenges, while maintaining the government's responsibility to its citizens working abroad. In view of the foregoing, the immediate passage of this bill is highly recommended. JINGGOY EJERCITO ESTRADA

office of tes TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 AUG -4 P5:39 SENATE RECEIVED BY: S. No. 855 Introduced by Senator Jinggoy Ejercito Estrada AN ACT FURTHER AMENDING REPUBLIC ACT NO. 8042, ALSO KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995, AS AMENDED BY REPUBLIC ACT NO. 10022 TO ENHANCE PROTECTION AND WELFARE STANDARDS FOR MIGRANT WORKERS THROUGH EXPANDED COMPULSORY INSURANCE COVERAGE Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 37-A of Republic Act No. 8042, as amended, is hereby

amended to read as follows: "Sec. 37-A. Compulsory Insurance Coverage for [Agency Hired] MIGRANT WORKERS OR OVERSEAS FILIPINO Workers. - In addition to the performance bond to be filed by the recruitment/manning agency under

Section 10, [each migrant worker deployed by a

recruitment/manning agency shall be covered by a compulsory insurance policy which shall be secured] THE PRIVATE RECRUITMENT AND MANNING AGENCIES ARE REQUIRED TO PROVIDE COMPREHENSIVE INSURANCE TO THE MIGRANT WORKERS OR OFWS THEY WILL DEPLOY at no cost to the said worker. "WITH RESPECT TO OFWS DEPLOYED THROUGH OTHER ARRANGEMENTS, SUCH AS BUT

NOT LIMITED, BALIK-MANGGAGAWA OR REHIRE WORKER, DIRECT HIRE WORKER, AND FOR GOVERNMENT TO GOVERNMENT HIRED WORKER, THE FOREIGN EMPLOYER SHALL BE REQUIRED TO SECURE THE COMPREHENSIVE INSURANCE TO THE CONCERNED OFW UNDER THE EMPLOYMENT CONTRACT, AT NO COST TO THE SAID WORKER. "[Such] SAID insurance policy shall be effective for the duration of the migrant worker['s] OR OFW'S employment UNLESS EXPRESSLY STATED OTHERWISE IN THE INSURANCE POLICY. [and] IT shall cover, at the minimum: "(a) xxx; "XXX "(e) xxx; "(f) Money claims arising from employer's liability which may be awarded or given to the worker in a judgment or settlement of his or her case in the NLRC. [The insurance coverage for money claims shall be equivalent to at least three (3) months for every year of the migrant worker's employment-contract]; "[In addition to the above coverage, the insurance policy shall also include:] "(g) Compassionate visit. When a migrant worker is hospitalized and has been confined for at least seven (7) consecutive days, he/SHE shall be entitled to a compassionate visit by one (1) family member or a requested individual. The insurance company shall pay for the transportation cost of the family member or requested individual to the major airport closest to the place of hospitalization of the worker AND BACK TO THE PHILIPPINES. It is, however, the responsibility of the

family member or requested individual to meet all visa and travel document requirements; "(h) xxx; and "(i) Medical repatriation. When medically necessary as determined by the INSURANCE COMPANY'S attending physician, repatriation under medical supervision to the migrant worker's residence shall be undertaken by the insurance provider at such time that the migrant worker is medically cleared for travel by commercial carrier. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of discharge from the hospital, an alternative appropriate mode of transportation, such as air ambulance, may be arranged. Medical and non-medical escorts may be provided when necessary. "THE INSURANCE COVERAGE ENUMERATED ABOVE SHALL BE THE MINIMUM INSURANCE COVERAGE WHICH SHALL BE PROVIDED TO THE MIGRANT WORKERS OR OFWS BY THE PRINCIPAL EMPLOYER OR RECRUITMENT OR MANNING AGENCY. "Only reputable private insurance companies duly registered with the Insurance Commission (IC), which are in existence and operational for at least FIVE (5) YEARS, WITH A NET WORTH IN ACCORDANCE WITH

SECTION 194 OF THE INSURANCE CODE, AS

AMENDED, OF AT LEAST [Five hundred million pesos (P500,000,000.00)] ONE BILLION THREE HUNDRED MILLION PESOS (P1,300,000,000.00) to be determined by the IC, and with a current year certificate of authority shall be qualified to provide for the worker's insurance coverage. Insurance companies who have

directors, partners, officers, employees or agents with relatives, within the fourth civil degree of consanguinity or affinity, who work or have interest in any of the licensed recruitment/manning agencies or in any of the government agencies involved in the overseas employment program shall be disqualified from providing this workers' insurance coverage. "ALL INSURANCE PROVIDERS CATERING TO OFWS SHALL BE REQUIRED TO DIGITALIZE THEIR SERVICES TO ENHANCE ACCESSIBILITY, EFFICIENCY, AND TRANSPARENCY. THIS INCLUDES ONLINE SUBMISSION OF APPLICATION FORMS, ISSUING DIGITAL INSURANCE POLICIES, MAKING POLICY DETAILS AVAILABLE ONLINE, AND INTEGRATING SECURE DIGITAL PAYMENT SYSTEMS. EMPLOYERS, RECRUITMENT/MANNING AGENCIES SHOULD BE ABLE TO CONVENIENTLY PAY FOR OFW INSURANCE ONLINE, FACILITATING COMPLIANCE AND REDUCING ADMINISTRATIVE BURDENS. PROVIDERS MUST ALSO ESTABLISH AN ONLINE PLATFORM FOR THE DIGITAL SUBMISSION AND TRACKING OF CLAIMS, ENSURING A STREAMLINED AND EFFICIENT PROCESS FOR OFWS AND THEIR BENEFICIARIES. "TO ENSURE AUTHENTICITY AND RELIABILITY, THE DEPARTMENT OF MIGRANT WORKERS (DMW) AND THE INSURANCE COMMISSION SHALL IMPLEMENT A VERIFICATION SYSTEM TO VALIDATE THE LEGITIMACY OF ALL ISSUED DIGITAL POLICIES. THIS VERIFICATION MECHANISM TO PREVENT FRAUDULENT INSURANCE SCHEMES, PROTECT OFWS FROM

ILLEGITIMATE PROVIDERS, AND ENSURE THAT ONLY ACCREDITED AND COMPLIANT INSURERS ARE ALLOWED TO OPERATE. "ALL INSURANCE PROVIDERS CATERING TO OVERSEAS FILIPINO WORKERS (OFWS) SHALL BE REQUIRED TO TRANSITION TO DIGITAL PLATFORMS FOR IMPROVED ACCESSIBILITY, EFFICIENCY, AND TRANSPARENCY. INSURANCE PROVIDERS MUST DEVELOP AND MAINTAIN AN ONLINE SYSTEM. "THE DIGITAL INSURANCE PLATFORM SHALL PROVIDE OFWS WITH AN EASILY ACCESSIBLE INTERFACE TO REVIEW POLICY TERMS, CONDITIONS, AND COVERAGE DETAILS. EMPLOYERS, RECRUITMENT/MANNING AGENCIES, SHALL ALSO BE GRANTED ACCESS TO FACILITATE COMPLIANCE AND ENSURE TIMELY INSURANCE PAYMENTS FOR THEIR WORKERS. "The PRINCIPAL EMPLOYER AND/OR recruitment/manning agency WHO WILL PROCURE THE INSURANCE POLICY OF A MIGRANT WORKER OR OFW shall have the [right] FREEDOM to choose [from] AMONGST any of the qualified AND DULY ACCREDITED insurance providers [the company that will insure the] TO COVER THEIR DEPLOYED migrant worker [it will deploy]. After procuring [such] THE REQUIRED insurance policy, the PRINCIPAL EMPLOYER AND/OR recruitment/manning agency shall provide an authenticated copy thereof to the migrant worker [- It] AND shall then submit the certificate of insurance coverage of the migrant worker to [POEA] THE DMW as [a] PART OF THE MANDATORY requirements

for the issuance of an Overseas Employment Certificate (OEC) to the migrant worker. [In the case of seafarers who are insured under policies issued by foreign insurance companies, the POEA shall accept certificates or other proofs of cover from recruitment/manning agencies: Provided, That the minimum coverage under sub paragraphs (a) to (i) are included therein.] "THE PRINCIPAL EMPLOYER AND/OR RECRUITMENT/MANNING AGENCY SHALL ASSIST THE MIGRANT WORKER OR OFW OR HIS/HER BENEFICIARY IN THE PROCESSING OF CLAIMS AGAINST THE INSURER. "Any person having a claim upon the policy issued pursuant to subparagraphs (a), (b), (c), (d) and (e) of this section shall present to the insurance company concerned a [written notice of] claim EITHER MANUALLY WRITTEN OR SUBMITTED THROUGH A SECURE DIGITAL PORTAL, together with pertinent supporting documents. The insurance company shall forthwith ascertain the truth and extent of the claim and make payment within ten (10) days from [the filing of the notice of claim] RECEIPT OF ALL THE REQUIRED DOCUMENTARY REQUIREMENTS FOR THE CLAIM. "For repatriation under subparagraph (d) hereof, a certification which states the reason/s for the termination of the migrant worker's employment and the need for his or her repatriation shall be issued by the [Philippine foreign post or the Philippine Overseas Labor Office (POLO) located in the receiving country] MIGRANT WORKERS OFFICE (MWO), OR IN HIS ABSENCE, THE EMBASSY

OR CONSULAR OFFICIAL LOCATED IN THE RECEIVING COUNTRY. "For subsistence allowance benefit under subparagraph (e), the concerned [tabor attaché] MWO or, in his absence, the embassy or consular official shall issue a certification which states the name of the case, the names of the parties and the nature of the cause of action of the migrant worker. "For the payment of money claims under subparagraph (f), the following rules shall govern: "(1) After a decision has become final and executory [or a settlement/compromise agreement has been reached between the parties at the NLRE], an order shall be released mandating the respondent recruitment/manning agency to pay the amount adjudged [or agreed upon] within thirty (30) days; "(1-A) THE LIABILITY OF THE INSURANCE COMPANY SHALL BE LIMITED TO THE UNEXPIRED PORTION OF THE WORKER'S SALARY UNDER THE EMPLOYMENT CONTRACT. ANY PORTION OF THE CONTRACT AWARDED TO THE WORKER AS COMPENSATION FOR UNPAID SALARY FOR WORK ALREADY RENDERED, DAMAGES, PLACEMENT FEES, OVERTIME, OR OTHER MISCELLANEOUS FEES SHALL BE BORNE SOLELY BY THE AGENCY. THE INSURANCE COMPANY'S LIABILITY SHALL DIMINISH PROPORTIONATELY WITH ANY REDUCTION IN THE UNEXPIRED PORTION OF THE WORKER'S SALARY; "(1-B) THE INSURANCE COMPANY SHALL NOT BE LIABLE IF THE RECRUITMENT AGENCY IS

NOT THE ONE WHO DEPLOYED THE OFW OR SEAFARERS; "(2) The recruitment/manning agency shall then its insurance immediately file a notice of claim with provider for the amount of liability insured, attaching therewith a copy of the decision or compromise agreement; "(3) Within ten (10) days from the [filing of notice of claim] RECEIPT OF ALL THE REQUIRED DOCUMENTARY REQUIREMENTS FOR THE CLAIM, the insurance company shall make payment to the recruitment/manning agency the amount adjudged [or agreed upon], or the amount of liability insured, whichever is lower. After receiving the insurance payment, the recruitment/manning agency shall immediately pay the migrant worker's claim in full, taking into account that in case the amount of insurance coverage is insufficient to satisfy the amount adjudged or agreed upon, it is liable to pay the balance thereof; "(4) xXx; "XXX "(7) xXx. "XXX." "THE DMW AND THE INSURANCE COMMISSION SHALL OVERSEE THE TRANSITION AND ENSURE COMPLIANCE WITH THE DIGITALIZATION AND VERIFICATION MANDATE. INSURANCE PROVIDERS FAILING TO COMPLY WITH THIS MANDATE SHALL BE SUBJECT TO PENALTIES, INCLUDING SUSPENSION OF ACCREDITATION FOR OFW-RELATED INSURANCE

SERVICES AND OTHER REGULATORY ACTIONS AS DEEMED NECESSARY."

Sec. 2. Separability Clause. - If any provision or part hereof is held invalid or

unconstitutional, the remainder of the law or the provision or part not otherwise 5 affected shall remain valid and subsisting.

Sec. 3. Repealing Clause. - Any law, presidential decree or issuance, executive

7 order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent with the provisions of this Act are hereby repealed, modified, or amended 9 accordingly.

Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,