Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

4137

HOUSE BILL No.

Introduced by Representative Karlo A. B. Nograles

EXPLANATORY NOTE

The proposed measure seeks to expand the coverage of the compulsory
insurance provided under the Migrant Workers and Overseas Filipino Act of
1995 to include rehires, direct hires and name hires under such insurar
coverage.

Republic Act No. 8042 otherwise known as the “Migrant Workers and
Overseas Filipino Act of 1995, in its Declaration of Principles, provides that the
State shall provide adequate and timely social, economic and legal services to
Filipino. migrant workers. This provision is the embodiment of the
constitutionally enshrined dogma that the “State shall afford full protection to
labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities to all”.

Thus, Congress passed Republic Act No. 10022 creating, among others,
compulsory insurance coverage for agency-hired migrant workers in order to
insure them against injury, death and other risks related to their employment
abroad. Such risks are greater and have more impact on the workers and their
families while they toil in a foreign country.

The amendment to the Migrant Workers and Overseas Filipino Act,
however, does not include rehires, direct hires and name hires under the
compulsory insurance coverage. Instead, RA 10022 merely gave this class of
migrant workers the option to be covered by an insurance policy, either by
requesting their employers to pay for the cost of the insurance coverage or by
paying for the premium themselves. The distinction is based on the fact that
for agency-hired migrant workers, the cost of the compulsory insurance
coverage is paid by the recruitment or placement agency, while rehires, direct


hires and name hires enter into employment contracts without the assistance
or participation of a recruitment/ placement agency.

It is in this light that an amendatory bill is proposed to expand the
coverage of the compulsory insurance provided under the existing law to
include rehires, direct hires and name hires under such insurance coverage,
This amendment ensures that all Filipino migrant workers, regardless of the
manner of their engagement or deployment, are fully protected against risks
that all workers are exposed to while being employed in a foreign country, It
also guarantees that the Filipino migrant workers and their families will be
compensated in case of death or injury - an event that will have an adverse
impact not only on the migrant workers’ families but on the economy as well.

In view of the foregoing, the passage of this measure is
requested.

earnestly

Kaflo A. B. Nograles
Representative
First District, Davao City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS,
First Regular Session

4137

HOUSE BILL No.

Introduced by Representative Karlo A. B. Nograles

AN ACT
EXPANDING THE COMPULSORY INSURANCE COVERAGE
FOR MIGRANT WORKERS TO INCLUDE REHIRES, NAME HIRES AND
DIRECT HIRES, AND FOR OTHER PURPOSES, AMENDING FOR THE
PURPOSE SECTION 37-A OF REPUBLIC ACT 8042, AS AMENDED,
OTHERWISE KNOWN AS THE MIGRANT WORKERS
AND OVERSEAS FILIPINOS ACT OF 1995

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

SECTION 1, Section 37-A of Republic Act No. 8042, as amended by
Republic Act No. 10022, is hereby amended to read as follows:

"SEC. 37-A. Compulsory Insurance Coverage [for Agency-Hired

Workers]. - In addition to the performance bond to be filed by the
recruitment/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
said worker. Such insurance policy shall be effective for the duration
of the migrant worker's employment 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;

“(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 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 for every year of the
migrant worker's employment contract;

["In addition to the above coverage, the insurance policy shall
also inchide:]

"(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.
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
insurance company's physician and/or a consulting physician,
evacuation under appropriate medical supervision by the mode of
transport necessary shall be undertaken by the insurance provider;
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
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

"Only reputable private insurance companies duly registered
with the Insurance Commission (IC), which are in existence and
operational for at least Five hundred million pesos (P500,000,000.00)
to be determined by the IC, and with a current year certificate of
authority 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 overscas employment program shall be
disqualified from providing this workers' insurance coverage.

“The recruitment/manning agency 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 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 to 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 POFA shall accept certificates or other proofs of cover
from recruitment/manning agenci 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), (¢), (d) 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,

"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;


“Ror 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 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 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
-e company 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 insurance
payment, the recruitment/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 to satisfy the amount
adjudged or agreed upon, it is 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 worker's claim [was] IS not settled within the
aforesaid thirty (30)-day period, SUCH CLAIM SHALL BE
AUTOMATICALLY SATISFIED AND PAID FROM __ 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

"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 recruitment/manning agency to claim any additional
fee from the migrant worker, OR THAT THE PREMIUM OR COST
OF THE INSURANCE COVERAGE WAS PASSED ON, DIRECTLY OR
INDIRECTLY, TO THE MIGRANT WORKER IN ANY FORM, 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.

‘or 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 worker:
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 or they may pay for the premium themselves. To protect the
rights of these workers, the POFA shall provide them adequate legal
assistance, including conciliation and mediation services, whether at
home or abroad.

"At the 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 br
evasive or not responsive to the legitimate claims of migrant worker:
The Department of Labor and Employment shall include such
assessment in its year-end report to Congre:

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

“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

SEC. 2, Separability Clause. - If any provision of this Act is declared
titutional or invalid, the same shall not affect the validity of the other
ions not declared as such

SEC. 3, Repealing Clause. - All other laws, presidential decrees, executive
issuance, rules and regulations, or parts thereof, found inconsistent with this Act
are hereby expressly repealed or modified accordingly

SEC. 4. Effectivity. - This Act shall take effect after fifteen (15) days
following its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,