Friday, November 12, 2010

Recruitment agencies to pay insurance coverage of OFWs

As mandated by Republic Act 10022, licensed recruitment and manning agencies or foreign employers shall pay for the insurance coverage of workers and seafarers they hire and should be at no cost to the worker or seafarer according to the Philippine Overseas Employment Administration.

Administrator Jennifer Jardin-Manalili said the agencies should not pass on to their recruits, directly or indirectly, the cost of the insurance premium of the worker or face penalties in accordance with existing POEA rules and regulations.

According to Manalili, a certificate of cover (COC) provided by an insurance company licensed and certified by the Insurance Commission (IC) is required before the issuance of overseas employment certificate (OEC) or exit clearance of agency-hired OFWs.

For seafarers, a certificate of entry or other proofs of insurance coverage from the manning agency shall be accepted if the vessel is covered by protection and indemnity, provided that the minimum coverage under sub-paragraphs (a) to (i) 0f Section 37-A of Republic Act 8042, as amended, are included. The coverage must also conform with pertinent POEA rules and regulations and the POEA Standard Terms and Conditions Governing the Overseas Employment of Filipino Seafarers on Board Ocean-Going Ships.
Manalili said the insurance coverage is optional for name hires, rehires balik-manggagawa or vacationing workers) and workers hired through government-to-government arrangement. They may request their foreign employers to pay the cost of insurance or they may pay the premium themselves.

The insurance coverage shall be effective for the duration of the worker’s employment contract and shall cover, at the minimum, the benefits provided for by the Omnibus Rules and Regulations Implementing Republic Act 8042 as amended by RA 10022.
The insurance coverage shall include accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance, settlement claims, compassionate visit, medical evacuation, and medical repatriation.


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