Compulsory Insurance for Agency Deployed OFWs

A memorandum of understanding on incorporation of Agency Hired Overseas Filipino Worker Compulsory Insurance Sub–Module in the Pre-Employment Orientation Seminars and Pre-Departure Orientation Seminar was signed on January 27.

Signatories of the MOU included OWWA Administrator Hans Leo J. Cacdac, POEA Officer-In-Charge Dominador R. Say and Insurance Commissioner Dennis B. Funa. It was held during the Insurance Commission’s 68th Anniversary Celebration at the Insurance Commission Grounds, UN Avenue, Manila.

According to the OWWA released on its website, the collaboration aims to advance the protection of the rights and welfare of migrant workers thru promoting awareness among OFWs, their beneficiaries, and the general public on the coverages and benefits of the compulsory insurance.

Hired Overseas Filipino Worker Compulsory Insurance is is pursuant to Section 37–A of RA No. 8042, as amended by RA No. 10022, otherwise known as “Migrant Workers and Overseas Filipinos Act of 1995,” states that each migrant worker deployed by a recruitment or manning agency shall be covered by a compulsory insurance policy which shall be secured at no cost to the said worker, which shall remain valid during the duration of the migrant worker’s employment and shall cover (1) accidental death, (2) natural death, (3) permanent total disablement, (4) repatriation cost, (5) subsistence allowance, (6) money claims, (7) compassionate visit, (8) medical evacuation, and (9) medical repatriation.

Agency-hired overseas Filipino workers (OFWs) shall be covered by a compulsory insurance for free.

Accidental Death ($15,000)
This covers the death of a worker while performing his or her duties in workplace or off the job but within the jurisdiction of the worksite.

Natural Death ($10,000)
This covers the death of a worker due to natural causes such as cardiac arrest, heatstroke, and other illnesses.

Permanent or Total Disablement ($7,500)
Applies to a worker who lost limbs, eyesight, and other organs that prevent him or her from carrying out work duties.

Repatriation Cost (Total cost)
This covers free repatriation of the worker back to the Philippines on the occurence of natural or man-made disaster within the country of deployment.

Subsistence Allowance ($100 per month for 6 months)
Should the agency-hired OFW get involved in a litigation, the employer and/or the recruitment agency must provide him or her $100 every month for a maximum of six months.

Compassionate Visit
In case a worker needs to be hospitalized for seven or more consecutive days, the insurance company shall pay for the transportation cost of one family member or requested individual to the major airport closest to the place of hospitalization of the worker.

Medical Evacuation
Should the worker get sick and no adequate medical facility is available nearby, he or she must be relocated by the insurance provider under appropriate medical supervision by the mode of transport upon the recommendation an authorized physician.

Medical Repatriation
Should workers need to be repatriated due to medical reasons as recommended by authorized physicians, repatriation under medical supervision to his or her residence shall be shouldered by the insurance provider given that he or she is medically cleared for travel by commercial carrier.