Senate President Pro Tempore Jinggoy Ejercito Estrada is now pushing for a measure expanding the compulsory insurance coverage for agency-hired overseas Filipino workers (OFWs). 

Estrada filed Senate Bill No. 2948 which primarily seeks to amend the provisions of Republic Act (RA) No. 8042, or the Migrant Workers and Overseas Filipino Act of 1995, to guarantee financial security to OFWs and their families during life-altering events and accountability among recruitment agencies as well as foreign employers.

In filing SBN 2948, Estrada sought the inclusion of rehires, direct hires and government hires. The insurance policy should also be at no cost to OFWs. 

Estrada said the bill seeks to benefit OFWs especially those who serve as breadwinners of their families. Passage of the bill into law would help them during medical emergencies, or if they would face possible damages or benefits that are not paid by the employer, or immediate expenses such as repatriation costs. 

“This is to protect OFWs and their families from possible problems they may face while working abroad,” Estrada said. 

The bill also aims to establish a strict criteria for insurance providers and ensure that insurance policies will cover the entire duration of the OFW’s' employment, unless, otherwise, specified in the policy.

Under the measure, only reputable insurance companies that are duly registered with the Insurance Commission (IC) and have been in existence for at least five (5) years will qualify. The bill also mandates insurance providers to digitize their services.

Moreover, the bill also requires private recruitment and manning agencies to provide comprehensive insurance to OFWs at no cost to them; foreign employers, meanwhile, will also be mandated to offer insurance as part of their employment contracts.

The proposed law also mandates the Department of Migrant Workers (DMW) and the Insurance Commission (IC) to implement a verification system to validate the legitimacy of all issued digital policies and oversee compliance to prevent any instance of fraudulent insurance schemes.

Likewise, SBN 2948 bill also directs principal employers and recruitment agencies to assist in processing claims and submitting insurance certificates for Overseas Employment Certificates (OECs). 

The liabilities of insurance companies are limited to unpaid salaries, and non-compliant providers may face penalties, the senator said.

“This is a significant step forward in safeguarding OFWs, ensuring they are supported and protected in the face of evolving risks and challenges, while the government maintains its responsibility to its citizens working abroad,” Estrada emphasized.