Recruiters must pay insurance for OFWs – POEA

Amid complaints from recruiters, the Philippine Overseas Employment Administration (POEA) has maintained that employers are mandated by law to pay for the insurance coverage of workers and seafarers they hire. The POEA said this coverage should be at no cost to the overseas worker. In a statement posted on the POEA website, POEA administrator Jennifer Jardin-Manalili warned recruiters they will face appropriate penalties if they pass on the insurance coverage fee to workers to their recruits directly or indirectly. Manalili said the policy is in accordance with the recently approved Republic Act (RA) 10022 or the Migrant Workers and Overseas Filipinos Act, which amends RA 8042 or the Migrant Workers Act of 1995, According to Manalili, a certificate of cover (COC) provided by an insurance company that is licensed and certified by the Insurance Commission (IC) is required before the issuance of overseas employment certificate (OEC) or exit clearance of agency-hired overseas workers. For seafarers, a certificate of entry or other proof of insurance coverage from the manning agency shall be accepted if the vessel is covered by protection and indemnity, provided that the minimum coverage are included. The coverage must also conform to pertinent POEA rules and regulations and the POEA Standard Terms and Conditions Governing the Overseas Employment of Filipino Seafarers on Board Ocean-Going Ships. Manalili said the insurance coverage is optional for name hires (overseas workers who did not go through agencies), rehires (balik-manggagawa or vacationing workers) and workers hired through government-to-government arrangement, but they may request their foreign employers to pay the cost of insurance or they may pay the premium themselves. “The insurance coverage shall be effective for the duration of the worker’s employment contract … (It) shall include accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance, settlement claims, compassionate visit, medical evacuation, and medical repatriation," the statement noted. Recruitment agencies, however, have said some of them may be forced to cease operations in light of the mandatory insurance coverage, especially for agencies who do not charge placement fees. Recruitment consultant Emmanuel Geslani said agencies charging placement fees, on the other hand, may not be able to make their principals agree to pay additional fees for insurance premium, which may reach as much as US$150 (about P6,500). He added the Overseas Workers Welfare Administration might as well be abolished, as the duty of protecting OFWs will now be in the hands of “predatory private insurance companies." – Jerrie M. Abella/KBK, GMANews.TV