OFW welfare group vs compulsory insurance

Wednesday, October 14, 2009

By Veronica Uy, (INQUIRER.net) 10/13/2009
Found at http://globalnation.inquirer.net/news/breakingnews/view/20091013-229848/OFW-welfare-group-vs-compulsory-insurance

MANILA, Philippines — The Center for Migrant Advocacy, which looks after the welfare of and policy issues concerning overseas Filipino workers, on Tuesday opposed the proposed law requiring compulsory insurance coverage for OFWs.

Members of the bicameral conference committee to amend Republic Act 8042 or the Migrant Workers Rights could not agree on this either.

CMA executive director Ellene Sana said that while the intention to cover all OFWs is good, it is bound to follow the fate of the $25 membership fee for Overseas Workers Welfare Administration (OWWA).

The fee is supposed to be paid by the employer, but is usually paid by the OFWs themselves.

Sana said the government—not private insurance companies, recruiters, or OFWs—should provide OFW protection.

She said the present voluntary insurance coverage should stay. The proposal “opens up another multi-million dollar insurance business at $75 per OFW. Madaming kikita ditto (Many will earn from this),” she said.

The proposed bill being discussed in the bicameral conference committee provides that in addition to performance bond by recruiter, each worker shall be covered by compulsory insurance policy at no cost to worker; $15,000 survivor’s benefit for accidental death; $10,000 for natural death; $7,500 for permanent total disability; repatriation cost in case of job termination or death; $100 a month in subsistence allowance benefit for six months for migrant worker involved in a case or litigation for protection of his or her rights in receiving country.

The bill also provides that claims resulting from employer’s liability to worker shall have an insurance coverage amounting to three months for every year of service.

In case of workers recruited through government-to-government mechanisms, the Philippine Overseas Employment
Administration shall provide a guarantee fund for monetary claims out of breach of contract.

Rehires and direct hires may get insurance coverage from employers or pay these themselves.