More Comprehensive Insurance Benefits For OFWs Proposed

Philippine Association of Service Exporters, Inc (PASEi) recently recommends a more comprehensive proposal regarding the additional insurance that Overseas Filipino Workers (OFW) will benefit.

The association recently opposes the recent statement of the Philippine Overseas Employment Administration (POEA) regarding the latter’s stand that additional insurance for OFWs should be voluntary and not compulsory.

Victor E. R. Fernandez, Jr, president of PASEI claims that POEA’s objection on the House Bill 5649 and Senate Bill 3286 that seek to amend Republic Act No. 8042 or the Migrant Workers and Overseas Filipinos Act of 1995 is baseless.

“The objections that the Philippine Overseas Employment Administration (POEA) interposes are based on conjectures and not on facts. There are enough safeguards that had been incorporated in the law. POEA cannot logically answer and present their objections impartially since POEA prefers to see the OFWs suffer than try the solutions offered by the industry,” says Fernandez on his statement.

Fernandez added, “The proposal of PASEI is more comprehensive compared to the current proposals being put forward under the Senate Bill No. 3286 and House Bill No. 5649 which limits the proposed liability insurance to money claims or damages.

Under the PASEI’s proposal OFWs will be entitled with these benefits:

• Accidental Death Benefit- USD15,000
• Survivor’s Benefit- USD10,000
• Total Permanent Disablement- USD7,500
• Repatriation

• Bodily Remains- US$4,000

(Including burial, up to the maximum reimbursement)

• Other Causes - USD1,000

and Emergency Evacuation 

• Subsistence allowance- USD600
• Payment for legitimate monetary claims- USD4,500

Under their proposal, insurance companies will be liable if they failed to comply with their monetary obligations to OFWs who suffered accidents, death, etc.

Moreover, all recruitment agencies will also lose their license to operate and their directors and officers will also be disqualified from engaging in business of recruitment/placement agencies if the premium cost of the compulsory insurance will not be given to OFWs.

“On the other hand, escrow is limited to unpaid wages only. It does not cover repatriation of remains and burial, life and accident insurance, subsistence allowances, repatriation for other defined causes and total permanent disability.

In the end, the compulsory insurance coverage of all legally POEA-processed workers at no cost to the worker and at no cost to government may guarantee direct, immediate and more expeditious delivery of benefits to the OCWs.” The statement read.