NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES,

1189

House Bill No.

Introduced by Representative Christian Tell A. Yap

Article XIII, Section 3 of the Constitution provides that the State shall afford full protection to
labor, local and overseas, organized and unorganized. Thus, Republic Act No. 8042 or the “Migrant
Workers and Overseas Filipinos Act” was enacted to mandate the State in upholding the dignity of its
citizens whether in country or overseas, in general, and Filipino migrant workers, in particular.
Towards this end, the State shall provide adequate and timely social, legal and economic services to
Overseas Filipino Workers (OFWs) as well as ensure that this sector is properly monitored and

accounted for, with due regard for their protection and welfare

The latest data from the Philippine Statistics Authority (PSA) shows that there are around 1.77
million OFWs abroad during the period of April to September 2020. Furthermore, Overseas Filipino
workers! (OFWs) cash remittances increased by 3.2 percent in March of last year to USD 2.594 billion.

This proposed measure seeks to incentivize undocumented OFWs by letting them register and
apply for their Overseas Employment Certificates (OEC) in the Philippine Overseas Employment
Authority (POEA) or with the Philippine Embassy abroad to which, in return, free insurance will be
provided by the State. Through this bill, the State will not only improve its capabilities in protecting
all our OFWs but also provide additional benefits for this vulnerable sector who undertakes

tremendous risks in working overseas.

In view of the foregoing reasons, the approval of the bill is earnestly sought.

canis FELL A. YAP

Representative, 2nd District of Tarlac


NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1189

‘House Bill No.

Introduced by Representative CHRISTIAN TELL A. YAP

AN ACT
EXPANDING THE COVERAGE OF COMPULSORY INSURANCE OF OVERSEAS
FILIPINO) WORKERS, FURTHER AMENDING REPUBLIC ACT NO. 8042,
OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS,
ACT OF 1995, AS AMENDED

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

Sr IN 1. Section 37-A of Republic Act No. 8042, otherwise known as the
“Migrant Workers and Overseas Filipinos Act of 1995”, as amended. is hereby further amended
to read as follows:

“SEC. 37-A. Compulsory Insurance Coverage for [Agency-Hired] MIGRANT
Workers. - In addition to the performance bond to be filed by the
recruitmenvmanning agency under Section 10, each migrant worker,
WHETHER —AGENCY-HIRE, REHIRE, DIRECT-HIRE, OR
GOVERNMENT-HIRE, [deployed by a recruitment/manning agency} shall
be covered by a compulsory insurance policy AFTER SIGNING OR
DURING THE RENEWAL OF THE CONTRACT, which shall be secured
at no cost to the said worker. THE INSURANCE PREMIUM SHALL BE
PAID BY THE FOREIGN EMPLOYER, OR BY THE
RECRUITMENT/MANNING AGENCY IN THE CASE OF AGENCY-
HIRED WORKERS. Such insurance policy shall be effective for the duration
of the migrant worker's employment OR DEPLOYMENT, and shall cover. at
the minimum:

(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:

TEMPORARY PARTIAL DISABLEMENT BENEFIT THAT
IS PAYABLE TO THE MIGRANT WORKER. THE TABLE
OR LIST OF PARTIAL DISABLEMENT WITH
CORRESPONDING AMOUNT SHALL BE INCLUDED IN
THE IMPLEMENTING RULES AND REGULATIONS OF
THIS SECTION BY THE INSURANCE COMMISSION,
AFTER CONSULTATION WITH THE INSURANCE
INDUSTRY AND OTHER STAKEHOLDERS;

(d) Repatriation AND OTHER ATTENDANT costS 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 OF THE MIGRANT WORKER, AND THE EMPLOYER
1S INCAPACITATED TO PAY OR HAS ABANDONED THE
WORKER. the insurance provider shall arrange and pay for the
repatriation or return of the worker's BODY OR CREMATED
remains. The insurance provider shall also render any assistance
necessary in the transport, including but not limited to, locating a
local and licensed funeral home, mortuary or direct disposition
facility to prepare the body for transport. completing all
documentation, obtaining legal clearances, procuring consular
services. TRANSLATION COSTS, providing death certificates.
purchasing the minimally 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:

SUBJECT TO THE INTER-AGENCY STUDY, AFTER DUE
CONSULTATION WITH THE INSURANCE INDUSTRY
AND OTHER STAKEHOLDERS, THE REPATRIATION
BENEFIT UNDER THIS PARAGRAPH MAY ALSO
EXTEND TO CAUSES DUE TO AN EPIDEMIC, PANDEMIC,
WAR, CIVIL UNREST, DISASTERS AND CALAMITIES,
WHETHER NATURAL OR MAN-MADE;

(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:


(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 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.
THE MONEY CLAIMS OF REHIRES, DIRECT-HIRES AND
GOVERNMENT-HIRES, SHALL BE SUBJECT TO THE
ADMINISTRATIVE PROCEEDING OF SINGLE-ENTRY
APPROACH (SENA), WHICH WAS INSTITUTIONALIZED
UNDER REPUBLIC ACT NO. 10396, ENTITLED “AN ACT
STRENGTHENING CONCILIATION-MEDIATION AS A
VOLUNTARY MODE OF DISPUTE SETTLEMENT FOR
ALL LABOR CASES, AMENDING FOR THIS PURPOSE
ARTICLE 228 OF PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE “LABOR
CODE OF THE PHILIPPINES”. THE SENA PROCEEDING
MAY BE DONE ONLINE OR ONSITE, IF THE MIGRANT
WORKER IS IN THE PHILIPPINES, SENA PROCEEDING
SHALL BE DONE AT THE PHILIPPINE OVERSEAS
EMPLOYMENT ADMINISTRATION (POEA). IF THE
WORKER IS ONSITE, SENA PROCEEDING SHALL BE
DONE AT THE PHILIPPINE OVERSEAS LABOR OFFICE.
THE POEA, IN CONSULTATION WITH THE
STAKEHOLDERS, IS HEREBY TASKED TO
PROMULGATE THE IMPLEMENTING GUIDELINES FOR
THIS PROVISION, WHICH WILL INCLUDE THE
PROCEDURE ON HOW A CASE SETTLEMENT OR
ORDER IS ENFORCED AGAINST THE FOREIGN
EMPLOYER OR PRINCIPAL.

In addition to the above coverage. the insurance policy shall also

include:

(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 insurance company 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
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 an adequate medical facility is not
ailable proximate to the migrant worker, as determined by the
insurance company’s physician and/or a consulting physician, THE
INSURANCE PROVIDER SHALL UNDERTAKE THE
evacuation TO THE NEAREST HOSPITAL OF ADEQUATE
MEDICAL FACILITY under appropriate medical supervision
AND by the mode of transport necessary [shall be undertaken by the

insurance provider]: and



awn

woran

10
cet

13
14
15
16
v7
18
19
20
2
22
23
24
25
26
7
28
29
30
31
32
33
34
35
36
37
38
39

41
42
43
44
45
46
47
48
49
50

(i) Medical repatriation, When medically necessary as determined by
the INSURANCE COMPANY'S PHYSICIAN OR A
CONSULTING [attending] physician. repatriation under medical
supervision to the migrant worker's residence 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, such as air ambulance. may be arranged.
Medical and non-medical escorts may be provided when necessary.

FOR PURPOSES OF THIS SECTION, THE TERM “DEPLOYMENT”
REFERS TO THE DURATION WHEN THE WORKER IS STILL
ABROAD, WHICH SHOULD NOT BE MORE THAN THE PERIOD OF
THE ORIGINAL EMPLOYMENT CONTRACT COVERED BY AN
INSURANCE POLICY.

Only reputable private insurance companies duly registered with the Insurance
Commission (IC). which are in existence and operational for at least five (5)
years. with a net worth OR CAPITALIZATION IN ACCORDANCE WITH

SECTION 194 OF THE INSURANCE CODE, AS AMENDED, [oft least
Five hundred million pesos (P500.000.000.00) to be determined by the IC] and
with a current year certificate of authority ISSUED BY THE IC shall be
qualified to provide for the worker's insurance coverage. 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 in any of the licensed recruitment/manning agencies or in any of the
government agencies involved in the overseas employment program shall be
disqualified from providing this workers” insurance coverage

The FOREIGN EMPLOYER, AS MAY BE REPRESENTED BY THE
recruitment/manning agency OR MIGRANT WORKER. shall have the right
to choose from any of the qualified insurance providers |the company that will
insure the migrant worker it will deploy]. After procuring such insurance policy.
the FOREIGN EMPLOYER, OR THE recruitment/manning agency shall
provide an authenticated copy thereof to the migrant worker. It shall then submit
the certificate of insurance coverage of the migrant worker 0 POEA as a
requirement for the issuance of an Overseas Employment Certificate (OEC) to
the migrant worker. 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-paragraphs (a) to (i) are included therein.

Any person having a claim upon the policy issued pursuant to subparagraphs
(a). (b). (c). (a) and (e) of this section shall present to the insurance company
concerned a written notice of claim together with pertinent supporting
documents. The insurance company 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.



ou nen e

10

12
1B
14
15
16
wv
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
a
42
4B

45
46
a7
48
4g
50

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: 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 (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 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 (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.

For the payment of money claims under subparagraph (f). the following rules
shall gover:

(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 recruitmenvmanning 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 its insurance provider for the amount of
liability insured, attaching therewith a copy of the decision or
compromise agreement:

(3) Within ten (10) days from the filing of notice of claim, the
insurance company shall make payment to the EMPLOYER OR
recruitment/manning agency the amount adjudged or agreed upon.
or the amount of liability insured. whichever is lower. After
receiving the insurance payment, the EMPLOYER OR
recruitmen/manning agency shall immediately pay the migrant
worker's claim in full, taking into account that in case the amount
of insurance coverage is insufficient 1 satisfy the amount
adjudged or agreed upon, itis liable to pay the balance thereof:

(4) In case the insurance company 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:


(8) If the AGENCY-HIRED 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 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:

(7) 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.

IN FILING A CLAIM WITH THE INSURANCE PROVIDER, THE
RECRUITMENT/MANNING AGENCY SHALL ASSIST THE
MIGRANT WORKER OR THE BENEFICIARY AND ENSURE THAT
ALL INFORMATION AND DOCUMENTS IN THE CUSTODY OF THE
AGENCY NECESSARY FOR THE CLAIM MUST BE READILY
ACCESSIBLE TO THE CLAIMANT. EXCEPT FOR THE AGENCY-
HIRED WORKERS, THE FOREGOING DUTIES SHALL BE
PERFORMED BY THE DOLE/POEA/OWWA.

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.

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 recruitmentmanning agency OR
EMPLOYER 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, AS WELL AS THE FOREIGN
EMPLOYER shall be perpetually disqualified from [engaging]
PARTICIPATING in the business of [recruitment] RECRUITING LAND-
BASED AND SEA-BASED [of overseas] workers. Such penalty is without
prejudice to any other liability which such persons may have incurred under
existing laws, rules or regulations.

For migrant workers recruited by the POEA on a government-to-government
arrangement, the POEA shall establish a foreign employers guarantee fund
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 may opt to be covered by this insurance coverage by
requesting their foreign employers to pay for the cost of the insurance coverage
or they may pay for the premium themselves.] To protect the rights of these
workers, the Department of Labor and Employment and the POEA shall
provide them adequate legal assistance, including conciliation and mediation
services, whether at home or abroad.

Atthe end of every year, the Department of Labor and Employment and the 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.

For purposes of this section, the Department of Labor and Employment. IC.
NLRC and the POEA. in consultation with the recruitmenvmanning agencies
[and], legitimate non-government organizations advocating the rights and
welfare of overseas Filipino workers. AND INSURANCE COMPANIES
shall formulate the necessary implementing rules and regulations.

The foregoing provisions on compulsory insurance coverage shall be subject to
automatic review through the Congressional Oversight Committee
limmediately after three (3)] EVERY FIVE (5) 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 FOREIGN EMPLOYERS, OR
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. FOR THIS PURPOSE,
THE CONGRESSIONAL OVERSIGHT COMMITTEE CREATED
UNDER REPUBLIC ACT NO. 10022, ENTITLED “AN ACT
AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS
THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF
1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF
PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT
WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN
DISTRESS, AND FOR OTHER PURPOSES”, SHALL CONTINUE TO.
EXIST UNTIL ITS MANDATE IS TERMINATED BY AN ACT OF
CONGRESS.”

Sr

Src. 3. All laws. decrees, orders. issuances. rules and regulations or parts thereof
contrary to or inconsistent with this Act, are hereby repealed or modified accordingly.

SEC. 4. This act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,

2. The Department of Labor and Employment, Philippine Overseas Employment
Administration, National Labor Relations Commission. OWWA and the Insurance
Commission, after consultations with the stakeholders. shall, within sixty (60) days after the
effectivity of this Act. formulate the necessary rules and regulations for the effective
implementation of this Act.