Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No._ 3398
Introduced by HON. JOSEPH GILBERT F. VIOLAGO

Explanatory Note

It was the overriding intent of the authors of Republic Act No. 10022 to include all overseas
Filipino workers (OFWs) in the policy providing a compulsory insurance coverage to strengthen the
‘mantle of protection that the State accords in their favor and for the benefit of their beneficiaries and
families as mandated by no less than the Constitution.

However, due to certain factors, the original intent and coverage of the said landmark
legislation was not fully realized

One of apprehensions raised by a few of its oppositors then was that the cost of insurance
coverage may be passed on to the migrant worker and who advocated then that the compulsory nature
of the policy be jettisoned in favor of a voluntary insurance program. Without presenting any proof or
evidence, and also in the absence of any other alternative, such opposition never prospered. As
expected, Congress unanimously approved the measure because of its immense importance to our
OFWs.

Many safeguards were installed to forestall and obviate this possibility-~that the insurance cost
may be passed on to the OFW-—at the bicameral conference level and this includes, among others,
‘grave penalties for any errant recruitment/manning agency who will collect and charge the cost of such
insurance cover in favor of the OFW, but unfortunately, at the rush of things and also owing to time
constraints during the last days of the legislative session, including an early national and presidential
clections fever then gripping the nation, only those agency-hired workers and who were departing for
the first time for their work destinations abroad were considered, leaving more than sixty (60%)
percent uninsured

It must be recalled that it was then the view of the Chair of the House Committee on Overseas
Workers Affairs, including all the other members of the House contingent, and which was shared by
the Senate panel during the bicameral conference that “no OFW must ever leave the country again
without being covered by an essential and adequate insurance protection”. Recognizing that not
all the OFWs will be covered, as they approached the bill's final approval, it was strongly
recommended that the mandatory coverage of all OFWs should be considered by the next Congress.

Hence, this proposed bill to accomplish the unfinished task and in particular, what should
have been completely covered by Republic Act No. 10022.

In view of the foregoing and, verily, in view of the ever growing uncertainties faced by our
OFWs, the approval of this bill is earnestly sought.

LA Ser*
HON. JOSEPH F. VIOLAGO
Representative, 2™ District-Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No._ 3308
Intoduced by HON. JOSEPH GILBERT F. VIOLAGO

AN ACT

PROVIDING A COMPULSORY INSURANCE COVERAGE FOR OVERSEAS
FILIPINO WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO,
10022, PROVIDING MECHANISMS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Section 23 of Republic Act. No. 10022 is hereby amended to read as
follows:

SEC. 23, a New section 37-A of Republic Act No. 8042, as amended, is
hereby amended to read as follows:

SEC. 37-A. Compulsory Insurance Coverage for ALL.
OVERSEAS PINO WORKERS — [Agency-Hired
Workers]. —In addition to the performance bond to be filed by
the recruitment agency/manning agency under Section 10, each
migrant worker deployed by a recruitment/manning agency shall
be covered by a compulsory insurance policy which shall be
secured at no cost to the worker. x x x

XXX XXX XXX

“For migrant workers recruited by the POEA on a government-
to-government arrangement, the POEA shall establish a foreign
employers guarantee fund SIXTY (60) DAYS FROM THE
APPROVAL OF THIS ACT which shall be answerable to the
workers’ monetary claims arising from breach of contractual
obligations. For migrant workers classified as rehires, name
hires or direct hires, they SHALL | may opt to ] be covered by
this insurance coverage by requesting their foreign employers to
pay for the cost of the insurance coverage THROUGH THE
PHILIPPINE OVERSEAS LABOR OFFICE (POLO) or
[ they may pay ] BY PAYING [ for | the premium themselves.
IN CASE OF NON-COOPERATION, REFUSAL OR ANY
DELAY OF PAYMENT OF THIS INSURANCE
COVERAGE BY FOREIGN EMPLOYERS, THESE
WORKERS SHALL SHOULDER THE EXPENSES OF
THE REQUIRED INSURANCE COVER, AND SAID
AMOUNT SHALL BE DEDUCTED FROM THE TOTAL
AMOUNT OF ADMINISTRATIVE AND PROCESSING
FEES COLLECTED BY THE POEA FROM THEM FOR


THEIR TRAVEL BACK TO THEIR WORK
DESTINATIONS ABROAD. x x x

SEC. 2. Qualification of Participating Insurers. —Only reputable private insurance
companies based in the Philippines duly authorized and licensed by the Insurance Commission
(IC) which are in existence and operational for at least five (5) years, with a net worth of at
least Five Hundred Million Pesos (Php 500,000,000.00) based on their audited financial
statements for the immediately preceding year, with a current year certificate of authority, and
with an IC-approved standard policy, shall be qualified to provide for this compulsory
insurance coverage.

SEC. 3. Representative Office.—The insurance provider must establish branches near
the vicinity where the POEA offices are located all over the country. Its central office must
also establish a 24-hour call/assistance centers to provide immediate assistance and entertain
complaints and inquiries from migrant workers and/or their beneficiaries, including other
stakeholders Furthermore, these insurance companies must have their own company
representatives stationed in host countries having at least ten thousand (10,000) OFWs insured
under this compulsory insurance coverage to provide in-country assistance for claims
servicing of migrant workers relative to their insurance coverage. In countries with more than
‘one POLO, there shall be as many representatives as there are POLOs, and in special
circumstances where the presence of a company representative is immediately needed as may
be determined by the POEA, the Insurance Commission shall require the insurance company
to forthwith send such representative.

SEC. 4, Insurance Premium,— The premium rate shall cover, at the very least, the
benefits stated in Republic Act No. 10022, but without prejudice to any preference for more
benefits as may be chosen by the insured OFW

SEC. 5. Unique Features of the Insurance Policy.-(a) 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.

(b) The policy shall not contain any standard or special exclusion usually and
customarily recognized in ordinary insurance contracts

(c) There shall be a proportionate amount of return of premium for the benefit of the
insured worker corresponding to the unexpired term of the insurance contract when the worker
decides to voluntarily pre-terminate his employment contract and returns to the Philippines.

SEC. 6. ute Settlement.--Any question or dispute in the enforcement of any
insurance policy issued under this Act , regardless of the amount, shall be brought before the
Insurance Commission for mediation or adjudication pursuant to applicable provisions of the
Insurance Code and circulars issued by the IC. The existing claims adjudication procedures of
the IC shall apply in the settlement of insurance claim disputes. Free legal assistance shall be
accorded to any insured OFW, at his/her option, in case he/she intend to dispute the non-
payment or short-payment of their benefits enumerated under the insurance coverage.

SEC. 7. Safeguard in the Issuance of Overseas Employment Certificate.--The
POEA shall not issue an overseas employment certificate (OEC) to any OFW if the proof of
insurance coverage submitted was issued by an insurance provider not included in the list of
qualified insurance providers furnished by the Insurance Commission. No certificate or proof
of cover shall be accepted unless validated and approved by the Insurance Commission.


SEC. 8 Regular Monitoring—A monitoring and supervisions program shall be
drawn by the Insurance Commission, in consultation with the DOLE, POEA and NLRC, and
the Senate Committee on Labor and House Committee on Overseas Workers Affairs, to ensure
an effective enforcement of the provisions of this Act which shall be included as an addendum
in the implementing rules and regulations of this Act. Said program must also consider vital
recommendations of Philippine non-governmental organizations involved in the protection and
advancements of the rights and welfare of our OFWs

SEC. 9. Automatic Review --The foregoing provisions on mandatory insurance
coverage shall be subject to automatic annual review through the Congressional Oversight
Committee one (1) year from the effectivity of this Act, without prejudice to an earlier review
if warranted by any special circumstance or compelling reason to either address a particular
situation, modify, rectify, strengthen or implement more effectively any provision of this Act.

SEC. 10. Implementing Rules and Regulations. ~ The departments and agencies
charged with carrying out the provisions of this Act, in consultation with the Senate
Committee on Labor and Employment and the House of Representatives Committee on
Overseas Workers Affairs, shall, within sixty (60) days after the effectivity of this Act,
formulate the necessary rules and regulations for its effective implementation. The Insurance
Commission shall also issue the pertinent guidelines relative to insurance matters within the
aforesaid period and which shall be incorporated in the implementing rules and regulations,

Section 11. Funding. — The departments, agencies, instrumentalities, bureaus, offices
and government-owned and controlled corporations charged with carrying out the provisions
of this Act shall include in their respective programs the implementation of this Act, the
funding of which shall be included in the General Appropriations Act

Section 12. Separability Clause. ~ If, for any reason, may portion of this Act is
declared unconstitutional or invalid, the same shall not affect the validity of the other
provisions not affected thereby.

Section 13, Repealing Clause. ~ All laws, decrees, executive orders, issuances, rules
and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

Section 14. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,