Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 1437

Introduced by Rep. Luis Jose Angel N. Campos, Jr.
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 (SL), 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 OFWs” in the
likes of SSS for the private sector and the GSIS for the government workers.

The OFWs and NGOs like CMA and Migrant 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 VI, 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 insurers insisting on more requirements than that
provided for by Sec. 37-A; on insisting on paying the benefits to the 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 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 older
declaring the final and executory decision of the Labor Arbiter, a requirement
solely for the said benefit on “(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 on
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 stems the growing pains by amending Section 37-A on
mandatory insurance coverage, and places it under the paramount obligation of
the government , renaming it as Special Social Security for Migrant Workers,
whether agency hired, name hired, directly 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.

In line with the foregoing the passage of this bill is earnestly sought.

REP. LUIS JOSE ANGEL N. CAI


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill nol437

Introduced by Rep. Luis Jose Angel N. Campos, Jr.

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, AS
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. - This law shall be called “Special Social Security for Migrant
Workers” of 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 Manggagawa 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. Such 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) Accidental death, with at least Fifteen thousand United States
dollars (US$10,000.00) survivor's benefit payable to the migrant
worker's beneficiaries;

“(©) 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 OWWA shall
arrange and pay for the repatriation or return of the worker's
remains. OWWA 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;

“(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;

b. 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:

“(f) 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;

“(g) 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 ten (10)
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.



“(h) 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 OWWA;
and

“(i) 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 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.

c. 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 provide an authenticated copy of the “Certificate SSSM Coverage” to the
overseas seafarer. The 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
Manggagawa, 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, Direct hires and rehires or Balik Manggagawa may pay for
their coverage and be issued the same Certificate.

d. Any person having a claim upon the Certification issued pursuant to
subparagraphs (a), (b), (c), (d) and (e) 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.

e. Any claim arising from accidental death, natural death or 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

“() Medical Certificate - In case of permanent disablement;


“For repatriation under subparagraph (d) 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 shalll 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 (e), 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.

f. For the payment of money claims under subparagraph (f), 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, it is 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;

“() 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;

g. For the benefits under subparagraphs (g) on Compassionate Visit,
subparagraph (h) on Medical Evacuation, and subparagraph (1) 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.


h. 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.

i. 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.

j. At the end of every year, the Department of Labor and Employment shall
make an assessment of the performance of OWWA in the SSS for Migrant
Worker, 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.

k. For purposes of this section, the Department of Labor and Employment,
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.

1. The foregoing provisions on SSS for Migrant Worker 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 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 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 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 8. Repealing Clause. - All laws, decrees, orders, rules and regulations,
other issuances, or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

Section 9. Effectivity Clause This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) national newspapers of general
circulation.

Approved,