Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
THIRD REGULAR SESSION

House Bill No. 8588

Introduced by ACTS OFW Representative Aniceto D. Bertiz IIT

EXPLANATORY NOTE

It is the policy of the State to protect the rights of workers and promote their welfare, thus, to
afford full protection to labor, local and overseas (Sec. 18, Art. II; Sec. 3, Art. XIII,
Philippine Constitution).

Towards this end, compulsory insurance coverage was provided for agency hired overseas
Filipino Workers in Republic Act No. 10022, which amended Republic Act No. 8042, in
2010. The insurance coverage, in the minimum, includes death (natural or accidental),
permanent disability, repatriation cost, subsistence allowance when involved in a case in the
receiving country, money claims, compassionate visit by a family member or a requested
individual when hospitalized for at least seven (7) consecutive days, medical evacuation, and
medical repatriation,

Rehires, name hires or direct hires are given the option to have the insurance coverage which
they may pay themselves or their foreign employer may pay upon their request. Government
hires, on the other hand, are not even given an option for the same insurance coverage, as
R.A. No. 10022 merely declares that for them “POEA shall establish a foreign employers
guarantee fund which shall be answerable to the workers’ monetary claims arising from
breach of contractual obligations,” and not for any of the insurable risks.

Hence, the beneficiary or the family of a migrant worker who accidentally dies in his/her
worksite abroad shall receive accidental death insurance benefit of US$15,000.00 within 10
days from filing of claim, without contest or without the necessity of proving fault or
negligence of any kind. However, the beneficiary or the family of rehire, name hire or direct
hire OFWs who suffered the same fate of accidental death in the worksite, may or may not be
entitled to the same benefit which can lessen their burden, as it will depend on whether or not
the deceased rehire, name hire or direct hire OFWs even bothered him/herself to consider the
option to be covered by the insurance coverage. For the beneficiary or family of government
hired OFW who accidentally died in the worksite, the situation is clear: no death benefit,
because the OFW has no insurance coverage and accidental death is not a breach of
contractual obligation.

This creates inequality in the protection of the welfare of our OFWs; hence, this bill makes
insurance coverage mandatory to all OFWs regardless of how they are able to legally get
their employment overseas.


Finally, there are certain needs under Section 37-A or the provision on mandatory insurance
coverage of RA No. 10022 which it failed to provide. For example, the documentary
requirements to claim the insurance benefits for compassionate visit or medical benefit are
absent in the law. These we need to provide at once for the sake of our OFWs who at the very
moment may be having difficulty in claiming the benefit due them because of this oversight.

May this august body pass with haste this bill, as our OFWs have waited for it long enough
since 2010.

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REP. ANICETO D. BERTIZ IL


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
THIRD REGULAR SESSION

House Bill No, 8588

Introduced by ACTS OFW Representative Aniceto D. Bertiz III

AN ACT FURTHER AMENDING REPUBLIC ACT NO. 8042, OTHERWISE
KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF
1995, AS AMENDED BY REPUBLIC ACT NO. 10022, FURTHER
STRENGTHENING THE STANDARD OF PROTECTION OF THE WELFARE OF
MIGRANT WORKERS BY EXPANDING THE COVERAGE OF COMPULSORY
INSURANCE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives in Congress assembled:

Section 1. The new Section 37-A on Compulsory Insurance Coverage of R.A. No. 8042, as
amended by R.A. No. 10022, is hereby amended to read as follows:

“Sec. 37-A — Compulsory Insurance Coverage for OVERSEAS FILIPINO WORKERS ~ In
addition to the performance bond to be filed by the recruitmentmanning agency under
Section 10, each migrant worker or OVERSEAS FILIPINO WORKER shall be covered by a
compulsory insurance policy which shall be secured:

a) for agency-hired workers ~ by the deploying recruitment/manning agency at no
cost to the said worker,

B) FOR BALIK-MANGGAGAWA OR REHIRES — BY THE FOREIGN
EMPLOYER OR THE WORKER, AS AGREED UPON BETWEEN THEM;

C) FOR DIRECT-HIRE WORKER —- BY THE FOREIGN EMPLOYER, AT NO
COST TO THE SAID WORKER

D) FOR GOVERNMENT TO GOVERNMENT HIRED WORKERS - BY THE
FOREIGN EMPLOYER, AT NO COST TO THE SAID WORKER

Such insurance policy shall be effective for the duration of the migrant worker’s employment
OR FROM DEPLOYMENT FROM, TO ARRIVAL IN, THE PHILIPPINES.

1, THE COMPULSORY INSURANCE SHALL COVER, AT LEAST, THE FOLLOWING:

(a) Accidental death, with at least Fifteen thousand United States dollars
(US$15,000.00) survivor's benefit payable to the migrant worker's beneficiaries;


(b) Natural death, with at least Ten Thousand United States Dollars (US$10,000.00)
survivor's benefit payable to the migrant worker's beneficiaries;

(c) Permanent total disablement, with at least Seven thousand five hundred United
States dollars (US$7,500.00) 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;

(d) 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 insurance provider shall arrange and pay for the repatriation or return of the
worker's remains. The insurance provider shall also render any AND ALL 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;

(e) 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;

(£) 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 insurance
‘coverage for money claims shall be equivalent to at least three (3) months SALARIES
for every year of the migrant worker’s employment contract;

(g) Compassionate visit, when a migrant worker is hospitalized and has been confined
for at least seven (7) consecutive days. THE compassionate visit SHALL BE by one
(1) family member or a requested individual WHOSE TRANSPORTATION COSTS
SHALL BE PAID BY THE INSURANCE PROVIDER to the major airport closest to
the place of hospitalization of the worker AND BACK TO THE PHILIPPINES. It is,
however, the responsibility of the family member or requested individual to meet all
visa and travel document requirements;

(h) Medical evacuation, when NO adequate medical facility is available proximate to
the migrant worker, as determined by the insurance company’s physician and/or a
consulting physician. THE MEDICAL evacuation SHALL BE TO THE NEAREST
HOSPITAL OF ADEQUATE MEDICAL FACILITY under appropriate medical
supervision, by the mode of transport necessary TO be undertaken by the insurance
provider, and

(i) Medical repatriation, when medically necessary as determined by the attending
physician. THE MEDICAL repatriation SHALL BE under medical supervision to the
migrant worker's residence. IT shall be undertaken by the insurance provider 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,

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such as air ambulance, may be arranged. Medical and non-medical escorts may be
provided when necessary.

2. THE QUALIFIED AND DISQUALIFIED INSURANCE PROVIDERS;

ONLY THE FOLLOWING INSURANCE PROVIDERS/OR COMPANIES shall be
qualified to provide for the worker’s insurance coverage:

a) reputable private insurance companies duly registered with the Insurance
Commission (IC),

) in existence and operational for at least five (5) years,

c) with a net worth of at least Five hundred million pesos (P500,000,000.00) to be
determined by the IC, and

d) with a current year certificate of authority.

THE FOLLOWING shall be disqualified from providing the worker's insurance
coverage — PRIVATE insurance companies who have directors, partners, officers,
employees or agents with relatives, within the fourth civil degree of consanguinity or
affinity, who work or have interest

a) in any licensed recruitment’manning agencies, or
b) in any of the government agencies involved in the overseas employment program

3. THE RIGHT TO CHOOSE INSURANCE PROVIDERS — THE PERSON OR ENTITY
WHO PAYS FOR THE INSURANCE COVERAGE HAS the right to choose from any of the
qualified insurance providers, TO WIT:

a) the deploying recruitment/manning agency at no cost to the said worker - for
agency-hired workers;

B) THE FOREIGN EMPLOYER OR THE WORKER, AS AGREED UPON
BETWEEN THEM - FOR THE BALIK-MANGGAGAWA OR REHIRES;

C) THE FOREIGN EMPLOYER, WHO PAYS FOR THE INSURANCE
COVERAGE AT NO COST TO THE WORKER ~ FOR DIRECT-HIRE WORKER
AND FOR GOVERNMENT TO GOVERNMENT HIRED WORKER

4. DUTIES OF THE PERSON OR ENTITY WHO PAYS FOR THE INSURANCE
COVERAGE -

BEFORE DEPARTURE OR DEPLOYMENT OF THE MIGRANT WORKER, THE
RECRUITMENT/MANNING AGENCY WHO PAYS FOR THE INSURANCE
COVERAGE SHALL

a) DISCLOSE AND SUFFICIENTLY EXPLAIN, IN COLLABORATION WITH
THE INSURANCE PROVIDER, TO THE MIGRANT WORKER AND TO AT
LEAST ONE OF HIS/HER BENEFICIARIES, THE TERMS AND BENEFITS OF
THE INSURANCE COVERAGE INCLUDING THE PROCEDURES FOR

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CLAIMING THE INSURANCE BENEFITS (taken from the IRR of R.A. No. 8042
as amended by R.A. No. 10022)

b) provide THE MIGRANT WORKER, AND THE FOREIGN EMPLOYER (IF THE
ONE WHO PAID FOR THE WORKER) an authenticated copy of the insurance
policy.

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

IN FILING A CLAIM WITH THE INSURANCE PROVIDER, THE
RECRUITMENT/MANNING AGENCY SHALL ASSIST THE OFW AND/OR
THE BENEFICIARY AND ASSURE THEM THAT ALL INFORMATION AND
DOCUMENTS IN THE CUSTODY OF THE AGENCY NECESSARY FOR THE
CLAIM MUST BE READILY ACCESSIBLE TO THE CLAIMANT.

In the case of seafarers who are insured under policies issued by foreign insurance
companies, the POEA shall accept certificates or other proofs of cover from
recruitment/manning agencies: Provided, That the minimum coverage under sub-
SECTION 1.(a) to 1.(i) are included therein

WHEN THE PERSON OR ENTITY PAYING FOR THE INSURANCE IS THE
FOREIGN EMPLOYER, THE FOREGOING DUTIES SHALL BE PERFORMED
BY THE POEA.

5. THE PROCEDURE FOR CLAIMING THE BENEFITS OF THE COMPULSORY
INSURANCE COVERAGE, AS PROVIDED FOR UNDER SUBSECTION | HEREOF
ARE AS FOLLOWS

5.1 FOR BENEFITS (a) to (e):

Step 1 — The migrant worker or his/her beneficiary, presents to the insurance provider
a written notice of claim together with the pertinent supporting documents provided in
the next subsection;

Step 2 — the insurance provider shall ascertain the truth and extent of the claim,
PROVIDED THAT; Any claim arising from accidental death, natural death or
disablement under this section shall be paid by the insurance company without any
contest and without the necessity of providing fault or negligence of any kind on the
part of the insured migrant worker.

Step 3 —within ten (10) days from receipt of the notice of claim, the insurance
provider shall pay the benefit TO THE CLAIMANT MIGRANT WORKER OR
HIS/HER BENEFICIARY WITH PROOF OF PAYMENT FURNISHED THE
RECRUITMENT AGENCY OR THE FOREIGN EMPLOYER WHO PAID FOR
THE COMPULSORY INSURANCE COVERAGE.

Provided, however, that in the case of a seafarer, the foreign insurance company shall
pay the same period of ten (10) days through its Philippine representative to
the seafarer/beneficiary.



Such amount received by the seafarer/beneficiary shall form part of and be deducted
from whatever benefits the seafarer/beneficiary may be entitled to under the
provisions of the POEA-Standard Employment Contract (SEC) or collective
bargaining agreement (CBA). Any claim in excess of the amount paid pursuant to the
no contest, no fault or negligence provision of this section shall be determined in
accordance with the POEA-SEC or CBA.

6, THE FOLLOWING ARE THE PERTINENT SUPPORTING DOCUMENTS sufficient as
evidence to substantiate the claim, provided they are duly authenticated by the Philippine
foreign posts:

a) Death Certificate - FOR NATURAL DEATH;

b) Death Certificate and Police or Accident Report — In case of accidental death; and
c) Medical Certificate — In case of permanent disablement;

d) a certification which states the reason/s for the termination of the migrant worker’s
employment and the need for his or her repatriation, issued by the Philippine foreign
post or the Philippine Overseas Labor Office (POLO) located in the receiving country
- FOR REPATRIATION UNDER SUBSECTION

©) a certification from the concerned labor attaché or, in his absence, the embassy or
consular official, which states the name of the case, the names of the parties and the
nature of the cause of action of the migrant worker - FOR SUBSISTENCE
ALLOWANCE

f) an Order issued by the Labor Arbiter mandating the respondent
recruitment/manning agency to pay the amount adjudged or agreed based on a final
and executory decision or a settlement’ compromise agreement reached between the
parties at the NURC. THE ORDER SHALL PROVIDE FOR A PERIOD TO PAY
WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE ORDER - FOR MONEY
CLAIMS

WITHIN THE SAID thirty (30) days, the recruitment/manning agency shall:

fia). file the claim for benefit with the insurance provider, attaching to the
claim the said Order

fb). secure the payment of the insurance benefit to the migrant worker
THROUGH THE RECRUITMENT/MANNING AGENCY, WITHIN TEN
(10) DAYS FROM THE FILING OF THE CLAIM;

f.c). in case of the failure to collect the insurance benefit or to fully satisfy the
judgment award or the consideration of the settlement or compromise
agreement, the recruitment/manning agency shall pay for the amount due the
migrant worker, whether it be the full judgment award or the mere balance
thereof, WITHIN THE SAID PERIOD OF THIRTY (30) DAYS

The provision of compulsory worker’s insurance under this section shall not
affect the joint and solidary liability of the foreign employer and the
recruitment/ manning agency under Section 10;

Lawyers for the insurance companies, unless the latter is impleaded, shall be
prohibited to appear before the NLRC in money claims cases under this
section.


g) CERTIFICATION FROM THE HOSPITAL WHERE THE OVERSEAS
FILIPINO WORKER IS CONFINED FOR AT LEAST SEVEN (7 )
CONSECUTIVE DAYS - FOR COMPASSIONATE VISIT

h) CERTIFICATION FROM A CONSULTING PHYSICIAN OR THE PHYSICIAN
OF THE INSURANCE PROVIDER THAT ADEQUATE MEDICAL FACILITY IS
NOT AVAILABLE PROXIMATE TO THE MIGRANT WORKER - FOR
MEDICAL EVACUATION

i) CERTIFICATION FROM THE ATTENDING PHYSICIAN THAT MEDICAL
REPATRIATION UP TO THE MIGRANT WORKER’S RESIDENCE 1S
NECESSARY - FOR MEDICAL REPATRIATION

7. JURISDICTION OF THE INSURANCE COMMISSION (IC) - Any question or dispute in
the enforcement of any insurance policy issued under this section shall be brought before the
IC for mediation or adjudication.

8. PENALTY FOR VIOLATION OF THIS SECTION - 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 premium or the cost of the insurance coverage
or that the said insurance 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.

9. To protect the rights of OVERSEAS FILIPINO workers, the POEA shall provide them
adequate legal assistance, including conciliation and mediation services, whether at home or
abroad.

10. At the end of every year, the Department of Labor and Employment (DOLE) and the
Insurance Commission (IC) shall jointly make an assessment of the performance of all
insurance providers based upon the report of the NLRC and the POEA on their respective
interactions and experiences with the insurance companies, and they shall have the authority
to ban or blacklist such insurance companies which are known to be evasive or not
responsive to the legitimate claims of migrant workers. The Department of Labor and
Employment shall include such assessment in its year-end report to Congress.

1. For purposes of this section, the DOLE, IC, NLRC and the POEA, in consultation with
the recruitment/manning agencies and legitimate non-government organizations advocating
the rights and welfare of overseas Filipino workers, shall formulate the necessary
implementing rules and regulations

12. The foregoing provisions on compulsory insurance coverage shall be subject to automatic
review through the Congressional Oversight Committee 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
insurance companies, without prejudice to an earlier review if necessary and warranted for
the purpose of modifying, amending and/or repealing these subject provisions.


Section 2. Implementing Rules and Regulations. — The departments and agencies charged
with carrying out the provisions of this Act shall, within ninety (90) days after the effectivity
of this Act, formulate the necessary rules and regulations for its effective implementation.

Section 3. Repealing Cause. — All laws, decrees, executive orders, rules and regulations, or
parts thereof inconsistent with the provisions of this Act are repealed or modified
accordingly.

Section 4. Separability Clause. — If, for any reason, any section or provision of this Act is
held unconstitutional or invalid, the other sections or provisions hereof shall not be affected
thereby.

Section 5. Effectivity Clause. — This Act shall take effect after fifteen (15) days from its

publication in the Official Gazette or in at least two (2) national newspapers of general
circulation, whichever comes earlier.

Approved,