Senate President Pro Tempore Jinggoy Ejercito Estrada has introduced a bill aimed at expanding the insurance coverage for overseas Filipino workers (OFWs) to include rehires, direct hires, and government hires.
The proposed measure, Senate Bill No. 2948, seeks to amend the Migrant Workers and Overseas Filipino Act of 1995 (Republic Act No. 8042). If passed, the bill would ensure that OFWs receive insurance coverage at no cost to them.
Estrada emphasized the importance of holding recruitment agencies and foreign employers accountable for their obligations under the new law.
Under the provisions of SB 2948, only reputable insurance companies, registered with the Insurance Commission (IC) for at least five years, will be eligible to provide coverage. The insurance policies will be required to last for the entire duration of an OFW’s employment and must include a digital service component.
Private recruitment and manning agencies will bear the responsibility of securing comprehensive insurance for OFWs at no cost. Foreign employers, on the other hand, will be required to include insurance coverage in their employment contracts with Filipino workers.
To ensure compliance, the Department of Migrant Workers (DMW) and the Insurance Commission will implement a verification system to validate the digital insurance policies. Additionally, the bill mandates that principal employers and recruitment agencies assist in processing claims and submitting the necessary insurance certificates for Overseas Employment Certificates (OECs).
The proposed legislation also establishes a limit on the insurance company’s liabilities, covering unpaid salaries, with penalties imposed on non-compliant providers.
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