Republic of the Philippines
House of Representatives

Quezon City, Metro Manila

Nineteenth Congress
Third Regular Session

HOUSE BILL NO. 11226

Introduced by Representative Baby Aline Vargas-Alfonso

EXPLANATORY NOTE

This bill seeks to enhance the protection and welfare standards for
migrant workers through expanded compulsory insurance coverage, amending
Republic Act No. (RA) 8042, otherwise known as the “Migrant Workers and
Overseas Filipinos Act of 1995,” as amended.

Section 18, Article II of the 1987 Constitution provides that “The State
arms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.” This policy is supported by Section 3,
Article XIII of the Constitution that requires the State to afford full protection to
labor, local or overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all

RA 8042, as amended by RA 10022, provides compulsory insurance
coverage for agency-hired overseas Filipino workers (OF Ws). It strengthens the
government’s commitment to safeguard OFWs by expanding compulsory
insurance coverage and ensuring immediate assistance.

Under Section 37-A of the law, workers classified as rehires, name hires
or direct hires are only given the option to have insurance coverage, but they
may either pay for the cost or premium themselves or request their foreign
employer to shoulder the same. Those hired on government-to-government
arrangement are not even given an option for the same insurance coverage.



This bill provides compulsory insurance coverage for migrant workers or
OFWs under their employment contract at no cost. It sets the criteria to
qualified insurance providers by requiring them to meet a minimum
capitalization threshold and maintain ethical practices. It also provides regular
assessments by the Insurance Commission, with the option to blacklist non-
compliant insurers, promote accountability, discourage unethical behavior,
thereby building confidence in the system.

The Department of Migrant Workers and the Insurance Commission shall
also oversee the transition and ensure compliance with digitalization and
verification mandate, and other regulatory actions.

The OFWs deserve protection not only because it is mandated by the
Constitution but also because they keep the country’s economy afloat through
their remittances. The proposed amendments reinforce the country's
commitment to safeguard OF Ws for their hard work and patriotism.

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

Alan fr

ABYALINE VARGAS-AL] iSO



eVYonrona

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Republic of the Philippines
House of Representatives

Quezon City, Metro Manila

Nineteenth Congress
Third Regular Session

HOUSE BILL NO. _11426

Introduced by Representative Baby Aline Vargas-Alfonso

AN ACT
ENHANCING THE PROTECTION AND WELFARE STANDARDS FOR
MIGRANT WORKERS THROUGH EXPANDED COMPULSORY
INSURANCE COVERAGE, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE “MIGRANT
WORKERS AND OVERSEAS FILIPINO ACT OF 1995,” AS AMENDED

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

SECTION 1. Section 37-A of Republic Act No. 8042, as amended, is
hereby further amended to read as follows:
“Sec. 37-A. Compulsory Insurance Coverage for [Ageney
Hired] MIGRANT WORKERS OR OVERSEAS FILIPINO

Workers. — In addition to the performance bond to be filed by the

recruitment/manning agency under Section 10, [each—migrant



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PRIVATE RECRUITMENT AND MANNING AGENCIES
ARE REQUIRED TO PROVIDE COMPREHENSIVE
INSURANCE TO THE MIGRANT WORKERS OR OFWS
THEY WILL DEPLOY at no cost to the said worker.

“WITH RESPECT TO OFWS DEPLOYED
THROUGH OTHER ARRANGEMENTS, SUCH AS BUT
NOT LIMITED, BALIK-MANGAGAWA OR REHIRE
WORKER, DIRECT HIRE WORKER, AND FOR
GOVERNMENT TO GOVERNMENT HIRED WORKER,
THE FOREIGN EMPLOYER SHALL BE REQUIRED TO
SECURE THE COMPREHENSIVE INSURANCE TO THE
CONCERNED OFW UNDER THE EMPLOYMENT
CONTRACT, AT NO COST TO THE SAID WORKER.

“[Sueh] SAID insurance policy shall be effective for the
duration of the migrant worker[-s] OR OFW’S employment
UNLESS EXPRESSLY STATED OTHERWISE IN THE
INSURANCE POLICY. [and] IT shall cover, at the minimum:

(a) Xxx:

“XXX

“(e) xxx:

“(f) Money claims arising from employer’s liability which

may be awarded or given to the worker in a judgement or


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settlement of his or her case in the NLRC. [Fhe—insurance

contract];
“4 as .
shall alse inelude:]

“(g) Compassionate visit. When a migrant worker is
hospitalized and has been confined for at least seven (7)
consecutive days, [ke] THE MIGRANT WORKER 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) x xx; and

“(i) Medical repatriation. When medically necessary as
determined by the INSURANCE COMPANY’S 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


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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.

“THE INSURANCE COVERAGE ENUMERATED
ABOVE SHALL BE THE MINIMUM INSURANCE
COVERAGE WHICH SHALL BE PROVIDED TO THE
MIGRANT WORKERS OR OFWS BY THE PRINCIPAL
EMPLOYER OR RECRUITMENT OR MANNING
AGENCY.

“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 IN ACCORDANCE WITH SECTION 194 OF
THE INSURANCE CODE, AS AMENDED, OF AT LEAST
[Five-hundred-million-pesesP500-000,000-00)] ONE BILLION
THREE HUNDRED MILLION PESOS (1,300,000,000.00) 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


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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.

“ALL INSURANCE PROVIDERS CATERING TO
OFWS SHALL BE REQUIRED TO DIGITALIZE THEIR
SERVICES TO ENHANCE ACCESSIBILITY,
EFFECIENCY, AND TRANSPARENCY. THIS INCLUDES
ONLINE SUBMISSION OF APPLICATION FORMS,
ISSUING DIGITAL INSURANCE POLICIES, MAKING

POLICY DETAILS AVAILABLE ONLINE AND

INTEGRATING SECURE DIGITAL PAYMENT SYSTEMS.
EMPLOYERS, RECRUITMENT/MANNING AGENCIES
SHOULD BE ABLE TO CONVENIENTLY PAY FOR OFW
INSURANCE ONLINE, FACILITATING COMPLIANCE
AND REDUCING ADMINISTRATIVE BURDENS.
PROVIDERS MUST ALSO ESTABLISH AN ONLINE
PLATFORM FOR THE DIGITAL SUBMISSION AND
TRACKING OF CLAIMS, ENSURING A STREAMLINED
AND EFFICIENT PROCESS FOR OFWS AND THEIR

BENEFICIARIES.


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“TO ENSURE EUTHENTICITY AND RELIABILITY,
THE DEPARTMENT OF MIGRANT WORKERS (DMW)
AND THE INSURANCE COMMISSION SHALL
IMPLEMENT A VERIFICATION SYSTEM TO VALIDATE
THE LEGITIMACY OF ALL ISSUED DIGITAL POLICIES.
THIS VERIFICATION MECHANISM TO PREVENT
FRAUDULENT INSURANCE SCHEMES, PROTECT OFWS
FROM ILLEGITIMATE PROVIDERS, AND ENSURE THAT
ONLY ACCREDITED AND COMPLIANT INSURERS ARE
ALLOWED TO OPERATE.

“ALL INSURANCE PROVIDERS CATERING TO
OFWS SHALL BE REQUIRED TO TRANSITION TO
DIGITAL PLATFORMS FOR IMPROVED ACCESSIBILITY,
EFFICIENCY, AND TRANSPARENCY. INSURANCE
PROVIDERS MUST DEVELOP AND MAINTAIN AN
ONLINE SYSTEM.

“THE DIGITAL INSURANCE PLATFORM SHALL
PROVIDE OFWS WITH AN EASILY ACCESSIBLE
INTERFACE TO REVIEW POLICY TERMS, CONDITIONS,
AND COVERAGE DETAILS. EMPLOYERS,
RECRUITMENT/MANNING AGENCIES, SHALL ALSO BE

GRANTED ACCESS TO FACILITATE COMPLIANCE AND


ENSURE TIMELY INSURANCE PAYMENTS FOR THEIR
WORKERS.

“The PRINCIPAL EMPLOYER OR recruitment/manning
agency WHO WILL PROCURE THE INSURANCE POLICY
OF A MIGRANT WORKER OR OFW shall have the [right]
FREEDOM to choose [fem] AMONGST any of the qualified
AND DULY ACCREDITED insurance providers [the-company
that-willinsurethe] TO COVER THEIR DEPLOYED migrant
worker [it-wil-depley]. After procuring [seh] THE REQUIRED
insurance policy, the PRINCIPAL EMPLOYER AND/OR
recruitment/manning agency shall provide an authenticated copy
thereof to the migrant worker [—] AND shall then submit the
certificate of insurance coverage of the migrant worker to [ROEA]
THE DMW as [a] PART OF THE MANDATORY requirementS

for the issuance of an Overseas Employment Certificate (OEC) to

the migrant worker. [in-the-ease-of seafarers-whe-are-insured under

“THE PRINCIPAL EMPLOYER OR

RECRUITMENT/MANNING AGENCY SH. L. ASSIST


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THE MIGRANT WORKER OR OFW OR BENEFICIARY
IN THE PROCESSING OF CLAIMS AGAINST THE
INSURER.

“Any person having a claim upon the policy issued pursuant
to subparagraphs (a), (b), (c), (d) and (e) of this section shall
present to the insurance company concerned a [written-netice-of]
clam EITHER MANUALLY WRITTEN OR SUBMITTED
THROUGH A SECURE DIGITAL PORTAL, 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-fiting of the notice-of claim]
RECEIPT OF ALL THE REQUIRED DOCUMENTARY
REQUIREMENTS FOR THE CLAIM.

“Xxx

“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 [Philippineforeign-pest-or-the

country] MIGRANT WORKERS OFFICE (MWO), OR THE

EMBASSY OR CONSULAR OFFICE LOCATED IN THE

RECEIVING COUNTRY.

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“For subsistence allowance benefit under subparagraph (e),
the concerned [Jaber-attaché] MWO 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 [ora

parties—at-the-NLRC€], an order shall be released mandating the

respondent recruitmen/manning agency to pay the amount

adjudged [eragreed-apen] within thirty (30) days;

“(1-A) THE LIABILITY OF THE INSURANCE
COMPANY SHALL BE LIMITED TO THE UNEXPIRED
PORTION OF THE WORKER’S SALARY UNDER THE
EMPLOYMENT CONTRACT. ANY PORTION OF THE
CONTRACT AWARDED TO THE WORKER AS
COMPENSATION FOR UNPAID SALARY FOR WORK
ALREADY RENDERED, DAMAGES, PLACEMENT FEES,
OVERTIME, OR OTHER MISCELLANEOUS FEES
SHALL BE BORNE SOLELY BY THE AGENCY. THE

INSURANCE COMPANY’S LIABILITY SHALL DIMINISH


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PROPORTIONATELY WITH ANY REDUCTION IN THE
UNEXPIRED PORTION OF THE WORKER’S SALARY;

“(1-B) THE INSURANCE COMPANY SHALL NOT
BE LIABLE IF THE RECRUITMENT AGENCY IS NOT
THE ONE WHO DEPLOYED THE OFW OR SEAFARERS;

“(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 ef notice of claim
RECEIPT OF ALL THE REQUIRED DOCUMENTARY
REQUIREMENTS FOR THE CLAIM, the insurance company
shall make payment to the recruitment/manning agency the
amount adjudged [eragreed—upen], 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) xXx x)

XXX



“(I)XXX.
“XXX.”
“THE DMW AND THE INSURANCE COMMISSION SHALL

OVERSEE THE TRANSITION AND ENSURE COMPLIANCE

WITH THE DIGITALIZATION AND VERIFICATION MANDATE.

INSURANCE PROVIDERS FAILING TO COMPLY WITH THIS

MANDATE SHALL BE SUBJECT TO PENALTIES, INCLUDING

SUSPENSION OF ACCREDITATION FOR OFW-RELATED

INSURANCE SERVICES AND OTHER REGULATORY ACTIONS

AS DEEMED NECESSARY.”

SEC. 2. Any law, presidential decree or issuance, executive order, letter of
instruction, administrative order, rule, or regulation contrary to or inconsistent
with the provisions of this Act are hereby repealed, modified, or amended
accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,