HOUSE \F REPRESENTATIVES:

Republic of the Philippines

HOUSE OF REPRESENTATIVES| RECEIVED
Quezon City DATE: _O 7 JUL 2018
SEVENTEENTH CONGRESS we
First Regular Session BY:

House Bill No. 1302

RESISTR.ATION UNIT
BiLLS AND WDE X SERVICE

Introduced by Hon. Aniceto R. Bertiz HII

EXPLANATORY NOTE

Since the year 2002 when the idea of mandatory insurance coverage of OFWs by
private insurers was first proposed, the Department of Labor and Employment
(DOLE) had been opposed to it. Some of the reasons for the opposition are
summarized below (taken from the Minutes of the Bicameral Conference Committee
meeting on Disagreeing Provisions of the bills which became R.A. No. 10022 held on
October 13, 2009, pp. 129-159).

~ It is essentially a privatization of social insurance measures (like GSIS, SSS,
and OWWA) which idea was still an ongoing and enduring debate, as pointed
out by POEA Administrator Hans Cacdac;

-  Recruitment/ manning agencies do not have insurable interest to insure OFWs
with respect to accidental or natural death and disability;

= The liability insurance severely undermines the concept of Joint Solidary
Liability (JSL), which purpose is for the recruitment/manning agencies to
carefully select their foreign employers. With the burden passed on to an
insurer, there can be the danger of greater tendency for carelessness on the part

of the recruiters.

During that October 13, 2009 Bicameral Conference Committee, Admin Cacdac

stressed that what DOLE was asking for was “a more comprehensive look, a more


omnibus oriented look towards social insurance for OF Ws” in the likes of SSS for the

private sector and the GSIS for the government workers.

The OFWs and NGOs like CMA and Migrante were likewise resisting the then
proposed legislation on compulsory coverage, counter-proposing voluntary coverage
instead. They expressed their belief that the obligation of the State to the OFWs is,
paramount than that of the private sector.

On March 8, 2010, Republic act No. 10022 which amended Republic Act No.
8042, lapsed into law in accordance with Article V1, Section 27 (i) of the
Constitution, without the signature of the President Gloria Macapagal-Arroyo.

Six (6) years into the implementation of Sec. 37-A on Compulsory Insurance
Coverage of Agency Hired Workers, reports of difficulties in claiming or securing the
insured benefits continue to grow. A number of agencies, OFWs and NGOs have
voiced out their dissatisfaction over the system after encountering such problems as
insurance agencies insisting on more requirements than that provided for by Sec.
37-A; on insisting on paying the benefits to the recruitment agencies as the ones who
paid for the insurance; on failure to receive the legislated benefits; on delaying the
release of the benefit from the reglementary period of ten (10) days to within thirty
(30) days, which is applicable only to the benefit of “money claims under the
subparagraph (f)” of Sec. 37-A. Worse, some insurers wait for the order declaring the
final and executory decision of the Labor Arbiter, a requirement solely for the benefit

oF “(f) money claims”.
The present mandatory insurance system has become a growing pain,

Meanwhile, there has been no change in the policy of the government of
placing social insurance programs under its umbrella. Social security and social
insurance measures in the form of GSIS for the government employees and SSS for

private employees remain under the government.

Indeed the interest and obligation of the government towards all workers are

paramount compared to that of any private institution.


The bills stem the growing pains by amending Section 37-A on mandatory
insurance coverage, and placing it under the paramount obligation of the state,
renaming it into Special Social Security for Migrant Workers, whether agency hired,
name hired, directly hired, re-hired or balik-manggagawa.

This Special Social Security shall be entrusted to the Overseas Workers
Welfare Administration which has been strengthened by its 2016 Charter.

Let this bill be immediately pass into law.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

1302

House Bill No.

Introduced by Hon. Aniceto R. Bertiz III

AN ACT ESTABLISHING A SPECIAL SOCIAL SECURITY FOR MIGRANT
WORKERS UNDER THE OVERSEAS WORKERS WELFARE
ADMINISTRATION, AND PROVIDING APPROPRIATIONS THEREFOR,

THEREBY AMENDING SECTION 37-A OF REPUBLIC ACT NO. 8042,
AMENDED BY REPUBLIC NO. 10022 ON THE COMPULSORY
INSURANCE COVERAGE BY PRIVATE INSURERS FOR AGENCY HIRED
WORKERS, TO FURTHER STRENGTHEN THE PROMOTION OF THE
WELFARE OF THE MIGRANT WORKERS, THEIR FAMILIES AND

OVERSEAS WORKERS IN DISTRESS, AND FOR OTHER PURPOSES

Section 1. — Statement of policy. - As enshrined in the Constitution,
a) The State affirms labor as a primary social economic force. It shall protect the

rights of workers and promote their welfare (Sec. 18, Article II)

b) The State shall afford full protection to labor, local and overseas, organized

and unorganized (Section 3, Article XIII)

Section 2, - TITLE -This law shall be called “Special Social Security for Migrant

Workers” oR SSS for Migrant Workers.


Section 3. Section 37-A of Republic Act No. 8042, as amended by Republic Act No.
10022, is hereby further amended to read as follows:

“SEC. 37-A. “Special Social Security for Migrant Workers” —

There is hereby created a Special Social Security For Migrant Workers or SSS for
Migrant Workers in the Overseas Workers Welfare Administration (OWWA).

a, Each migrant worker deployed by a recruitment/manning agency, direct hire and
rehire or Balik Mangagawa shall be covered by SSS for Migrant Workers which
shall be paid to Overseas Workers Welfare Administration (OWWA) at no cost to
the said worker, except as provided below.The SSS for Migrant Workers shall be
effective for the duration of the migrant worker’s employment and shall cover, at
the minimum, the following benefits which shall be paid to the migrant worker or
his beneficiary within ten (10) days from the filing of claim:

“(a.1) Accidental death, with at least Fifteen thousand United States
dollars (US$10,000.00) survivor's benefit payable to the migrant
worker's beneficiaries;

(a.2) Natural death, with at least fifteen thousand United States Dollars
(US$15,000.00) survivor's benefit payable to the migrant worker’s

beneficiaries;

“(a.3) Permanent total disablement, with at least Seven thousand five
hundred United States dollars (USS7,500.00) disability benefit payable
to the migrant worker, The following disabilities shall be deemed
permanent: total, complete loss of sight of both eyes; loss of two (2)
limbs at or above the ankles or wrists; permanent complete paralysis of
‘two (2) limbs; brain injury resulting to incurable imbecility or insanity;


“(a4) Repatriation cost of the worker when his/her employment is
terminated without any valid cause, including the transport of his or
her personal belongings. In case of death, the OWWA shall arrange
and pay for the repatriation or return of the worker's remains from the
funds of the SSS for migrant workers. OWWA, acting as trustee for the
SSS for migrant workers shall also render any assistance necessary in
the transport including, but not limited to, locating a local licensed
funeral home, mortuary or direct disposition facility to prepare the
body for transport, completing all documentation, obtaining legal
clearances, procuring consular services, providing necessary casket or
air transport container, as well as transporting the remains including
retrieval from site of death and delivery to the receiving funeral home;

“(a.5) Subsistence allowance benefit, with at least One hundred United
States dollars (US$100.00) per month for a maximum of six (6)
months for a migrant worker who is involved in a case or litigation for

the protection of his/her rights in the receiving country;

In addition to the above, the SSS for Migrant Workers shall also include the
following which shall be paid to the migrant worker within the period specified

herein:

(a.6) Money claims arising from employer's liability which may be
awarded or given to the worker in a judgment or settlement of his or
her case in the NLRC. The protection and indemnity coverage for
money claims shall be equivalent to at least three (3) months for every
year of the migrant worker's employment contract, in accordance with

the rules of procedure provided herein;

“(a.7) Compassionate visit. When a migrant worker is hospitalized and
has been confined for at least seven (7) consecutive days, he shall be

entitled to a compassionate visit by one (1) family member or a


requested individual, The fund for the SSS for Migrant Worker under
the care of OWWA shall pay for the transportation cost of the family

member or requested individual to the major airport closest to the place
of hospitalization of the worker, within fifteen (15) days from filing of
the claim. It is, however, the responsibility of the family member or

requested individual to meet all visa and travel document requirements.

“(a.8) Medical evacuation. When an adequate medical facility is not
available proximate to the migrant worker, as determined by the
OWWA designated physician and/or a consulting physician,
evacuation under appropriate medical supervision by the mode of
transport necessary shall be immediately undertaken by SSS for
migrant workers in OWWA; and

“(a.9) Medical repatriation, When medically necessary as determined
by the attending physician, repatriation under medical supervision to
the migrant worker’s residence shall be undertaken by SSS for migrant
worker in OWWA at such time that the migrant worker is medically
cleared for travel by commercial carrier. If the period to receive
medical clearance to travel exceeds fourteen (14) days from the date of
discharge from the hospital, an alternative appropriate mode of
transportation, such as air ambulance, may be arranged. Medical and

non-medical escorts may be provided when necessary.

. After paying the cost of the SSS for Migrant Workers to OWWA, the
recruitment/manning agency shall provide an authenticated copy of the
“Certificate SSSM Coverage” to the migrant worker. In the case of seafarers who
are covered by their foreign employers with generous but work-related benefits
under their Standard Employment Contracts, the manning agencies shall pay for
and provide an authenticated copy of the “Certificate SSSM Coverage” to the

overseas seafarer, without cost to the seafarer. The recruitment/‘manning agency


then submits the certificate to POEA as a requirement for the issuance of an
Overseas Employment Certificate (OEC) to the migrant worker.

For migrant workers classified as name hires, direct hires, rehires or Balik
‘Mangagawa, they may opt to be covered by this protection and indemnity coverage by
requesting their foreign employers to pay for the cost of the protection and indemnity
coverage or they may pay for the cost themselves. To protect the rights of these
workers, the POEA shall provide them adequate legal assistance, including
conciliation and mediation services, whether at home or abroad. Name hires, when

their coverage is paid, they shall be issued the same Certificate.

c. Any person having a claim upon the Certification issued pursuant to
subparagraphs (a.1), (2.2), (a.3), (a.4) and (a.5) of this section shall present to
OWWA a written notice of claim together with pertinent supporting documents.
OWWA shall forthwith ascertain the truth and extent of the claim and make
payment within ten (10) days from the filing of the notice of claim.

4. Any claim arising from (a.1) accidental death, (a.2) natural death or (a.3)
disablement under this section shall be paid by OWWA without any contest and
without the necessity of providing fault or negligence of any kind on the part of
the migrant worker, within ten (10) days as provided above: Provided, That the
following documents, duly authenticated by the Philippine foreign posts, shall be
sufficient evidence to substantiate the claim:

“(1) Death Certificate — In case of natural or accidental death;

(2) Police or Accident Report — In case of accidental death; and

“(3) Medical Certificate — In case of permanent disablement;

“For repatriation under subparagraph (a.4) hereof, a certification which states
the reason/s for the termination of the migrant worker's employment and the need for
his or her repatriation shall be issued by the Philippine foreign post or the Philippine
Overseas Labor Office (POLO) located in the receiving country.


“For subsistence allowance benefit under subparagraph (a.5), the concerned labor
attaché or, in his absence, the embassy or consular official shall issue a certification
which states the name of the case, the names of the parties and the nature of the cause

of action of the migrant worker.

e. For the payment of money claims under subparagraph (2.6), the following rules
shall govern:
“(1) After a decision has become final and executory or a settlement/compromise
agreement has been reached between the parties at the NLRC, an order shall be
released mandating the respondent recruitment/manning agency to pay the amount
adjudged or agreed upon within thirty (30) days;
(2) The recruitment/manning agency shall then immediately file a notice of claim
with OWWA for the amount of Special Social Security for Migrant Worker benefit,
attaching therewith a copy of the decision or compromise agreement;
(3) Within ten (10) days from the filing of notice of claim, OWWA shall make
payment to the recruitment/manning agency the amount adjudged or agreed upon, or
the amount of liability insured, whichever is lower. After receiving the payment, the
recruitment/manning agency shall immediately pay the migrant worker’s claim in full,
taking into account that in case the amount of coverage is insufficient to satisfy the
amount adjudged or agreed upon, itis liable to pay the balance thereof;
(4) In case OWWA fails to make payment within ten (10) days from the filing of the
claim, the recruitment/ manning agency shall pay the amount adjudged or agreed
upon within the remaining days of the thirty (30)-day period, as provided in the first
subparagraph hereof;
“(5) If the worker’s claim was not settled within the aforesaid thirty (30)-day period,
the recruitment‘manning agency’s performance bond or escrow deposit shall be
forthwith garnished to satisfy the migrant worker’s claim;
“(6) The provision of SSS for Migrant Worker under this section shall not affect the
joint and solidary liability of the foreign employer and the recruitment/manning

agency under Section 10;


£. For the benefits under subparagraphs (a.7) on Compassionate Visit, subparagraph
(a.8) on Medical Evacuation, and subparagraph (a.9) on Medical Repatriation, the
concerned labor attaché or, in his absence, the embassy or consular official shall
issue a certification which states the presence of the corresponding conditions for
their entitlement. The claim with this required certification shall be enough for the
OWWA to pay or shoulder the corresponding benefit within ten (10) days from
the date the documented claim is filed.

g. In case it is shown by substantial evidence before the POEA that the migrant
worker who was deployed by a licensed recruitment/manning agency has paid for
the cost of the SSS for Migrant Worker or that the said coverage was used as basis
by the recruitment/manning agency to claim any additional fee from the migrant
worker, the said licensed recruitment/manning agency shall lose its license and all
its directors, partners, proprietors, officers and employees shall be perpetually
disqualified from engaging in the business of recruitment of overseas workers.
‘Such penalty is without prejudice to any other liability which such persons may

have incurred under existing laws, rules or regulations.

h. For migrant workers recruited by the POEA on a government-to-government
arrangement, the POEA shall establish the equivalent of a foreign employers SSS
for Migrant Worker fund which shall be answerable to the workers’ monetary

claims arising from breach of contractual obligations.

i. At the end of every year, the Department of Labor and Employment shall make an
assessment of the performance of the SSS for Migrant Worker in OWWA, based
upon the report of the NLRC and the POEA on their respective interactions and
experiences with the OWWA. The Department of Labor and Employment shall

include such assessment in its year-end report to Congress.

The foregoing provisions on SSS for Migrant Worker coverage shall be

subject to automatic review through the Congressional Oversight Committee

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immediately after three (3) years from the effectivity of this Act in order to
determine its efficacy in favor of the covered overseas Filipino workers and
the compliance by recruitment/manning agencies and OWWA, without
prejudice to an earlier review if necessary and warranted for the purpose of

modifying, amending and/or repealing these subject provisions.

Section 4. Establishment of the Office of Special Social Security for Migrant
Worker in OWWA. - For the purpose of this law, the Office of Special Social Security
for Migrant Worker is hereby declared established in OWWA.

Section 5. The Duties and obligations/answerability for the Special Social Security
for Migrant Worker in OWWA — The Office of SSS for Migrant Worker in OWWA
shall discharge the same duties, obligations and responsibilities and shall have the
same answerability as provided under the 2016 OWWA Charter for the management
and protection of the OWWA Fund, but with higher degree of culpability in case of
any failure to properly discharge duties, obligations and responsibilities as provided
by this law and the 2016 Charter of the OWWA.

Section 6. Implementing rules and Regulations.- The Department of Labor and
Employment, the POEA and the NLRC, in consultation with the recruitment/manning
agencies and legitimate non-government organizations advocating the rights and
welfare of Overseas Filipino Workers shall, within ninety (90) days after the
effectivity of this Act, formulate the necessary rules and regulations for its effective

implementation.

Section 7. Separability Clause. - If any portion or provision of this Act is declared
void or unconstitutional, the remaining portions or provisions hereof shall not be

affected by such declaration.


Section 9. Effectivity Clause.- This Act shall take effect fifleen (15) days after its

complete publication in at least two (2) national newspapers of general circulation.

Approved,

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