Philippine senate bill seeks broader insurance for rehired, direct overseas workers

Recruitment agencies and foreign employers should be held accountable for their obligations.

Philippine Senate President Pro Tempore Jinggoy Ejercito Estrada is proposing an expansion of the compulsory insurance coverage for overseas Filipino workers (OFWs) to include rehires, direct hires, and government hires. 

The measure, outlined in Senate Bill No. 2948, seeks to amend Republic Act No. 8042, or the Migrant Workers and Overseas Filipino Act of 1995, ensuring that the insurance policy comes at no cost to OFWs.

He stressed that recruitment agencies and foreign employers should be held accountable for their obligations.

Under SB 2948, only reputable insurance companies registered with the Insurance Commission (IC) for at least five years will be eligible to provide coverage. 

Insurance policies must last for the entire duration of an OFW's employment, and providers will be required to digitise their services.

Private recruitment and manning agencies will be responsible for securing comprehensive insurance for OFWs at no cost, whilst foreign employers must include insurance in employment contracts. 

The Department of Migrant Workers (DMW) and the IC will implement a verification system to validate digital policies and ensure compliance.

The bill also mandates that principal employers and recruitment agencies assist in processing claims and submitting insurance certificates for Overseas Employment Certificates (OECs). 

Insurance company liabilities will be limited to unpaid salaries, and non-compliant providers may face penalties.