(POLITIKO) Senate President Pro Tempore Jinggoy Ejercito Estrada has filed a bill seeking to expand the compulsory insurance coverage for overseas Filipino workers (OFWs).
“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,” said Estrada who filed Senate Bill No. 2948.
The proposed measure seeks to amend provisions of Republic Act (RA) No. 8042, the Migrant Workers and Overseas Filipino Act of 1995.
The senator explained the amendment will guarantee financial security to OFWs and their families during life-altering events and accountability among recruitment agencies including foreign employers.
“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,” he stated.
“Proteksyon ito ng mga OFWs at ng kanilang pamilya sa mga posibleng problema na maaari nilang harapin habang nagtatrabaho sa ibang bansa,” he added.
Estrada said the proposed measure seeks to 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.
The senator said only reputable insurance companies that are duly registered with the Insurance Commission (IC) and have been in existence for at least five years will be allowed to qualify and asked to digitize their services.
To prevent fraudulent insurance schemes and protect OFWs from illegitimate providers, Estrada said 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 lawmaker said 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.
The principal employers and recruitment agencies will be made to assist in processing claims and submitting insurance certificates for Overseas Employment Certificates (OECs).
The bill indicated that the liabilities of insurance companies will be limited to unpaid salaries, and non-compliant providers may face penalties.