POEA on mandatory insurance: We’re just implementing law

Amid mounting criticism against the government’s new policy on mandatory insurance for overseas workers, the Philippine Overseas Employment Administration (POEA) on Monday maintained it is merely implementing the law. Republic Act 10022, an amendatory law to RA 8042 or the Migrant Workers and Overseas Filipinos Act, now requires insurance coverage for overseas Filipino workers. The POEA is mandated to implement the law, administrator Jennifer Jardin-Manalili said in a statement. “With the law already in effect, the POEA is now under obligation to implement the provision on mandatory insurance cover for agency-hired OFWs leaving the country for the first time or those under new contracts of employment," Manalili said. The POEA administrator’s statement came after some 100 employers in Hong Kong reportedly suspended the hiring of Filipino domestic helpers. The employers said the new policy is unfair as Hong Kong labor laws already require them to secure insurance coverage for foreign workers. (See: Mandatory insurance imperils HK hiring of Pinoy helpers) The POEA recognizes that some countries or destinations provide insurance policies for OFWs, Manalili said, but these do not cover all risks required under RA 10022. RA 10022 mandates that every departing newly hired OFW who is processed through an agency be covered by insurance to answer for accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance benefit, money claims arising from the employer’s liability, compassionate visit, medical evacuation, and medical repatriation. The POEA has thus asked Labor secretary Rosalinda Baldoz to “immediately" convene the inter-agency committee on insurance to discuss the issues in implementing the compulsory insurance. The committee is composed of representatives of the Department of Labor and Employment, Insurance Commission, National Labor Research Commission, and the POEA. “Being guided by the mandate of law, I believe POEA does not have the authority or discretion to deviate from it and we have to seek guidance from Congress," Manalili added. She also clarified that rehires or balik-manggagawa workers are not covered by mandatory insurance requirement. OFWs now serving their contracts in Hong Kong are thus not affected, she said. She added that insurance coverage is optional for name-hired workers, or those who did not go through agencies, and for those processed under government-to-government arrangements.—Jerrie M. Abella/JV, GMANews.TV