Go Back   Overseas Filipino Worker Forum > Working or Living Abroad > Planning to Go Abroad, Visa & Immigration
Member Log In
Non-Member Registration
Register FAQ Members List Calendar Forum Photo Gallery Arcade Games Search Today's Posts Mark Forums Read

POEA Says Recruiters must pay insurance for OFWs

  
Planning to Go Abroad, Visa & Immigration Thread, POEA Says Recruiters must pay insurance for OFWs in Working or Living Abroad; ...
Reply
 
LinkBack Thread Tools Display Modes
  #1  
Old 10-18-2010, 03:12 AM
Senior Member
 
Join Date: Apr 2008
Posts: 1,429
Forum Photo Gallery: 554
Comments: 22
Recipes: 1
Exclamation POEA Says Recruiters must pay insurance for OFWs

10/18/2010 Amid complaints from recruiters, the Philippine Overseas Employment Administration (POEA) has maintained that employers are mandated by law to pay for the insurance coverage of workers and seafarers they hire.

The POEA said this coverage should be at no cost to the overseas worker.

In a statement posted on the POEA website, POEA administrator Jennifer Jardin-Manalili warned recruiters they will face appropriate penalties if they pass on the insurance coverage fee to workers to their recruits directly or indirectly.

Manalili said the policy is in accordance with the recently approved Republic Act (RA) 10022 or the Migrant Workers and Overseas Filipinos Act, which amends RA 8042 or the Migrant Workers Act of 1995,

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

For seafarers, a certificate of entry or other proof of insurance coverage from the manning agency shall be accepted if the vessel is covered by protection and indemnity, provided that the minimum coverage are included.

The coverage must also conform to 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 (overseas workers who did not go through agencies), rehires (balik-manggagawa or vacationing workers) and workers hired through government-to-government arrangement, but 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 … (It) shall include accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance, settlement claims, compassionate visit, medical evacuation, and medical repatriation," the statement noted.

Recruitment agencies, however, have said some of them may be forced to cease operations in light of the mandatory insurance coverage, especially for agencies who do not charge placement fees.

Recruitment consultant Emmanuel Geslani said agencies charging placement fees, on the other hand, may not be able to make their principals agree to pay additional fees for insurance premium, which may reach as much as US$150 (about P6,500).

He added the Overseas Workers Welfare Administration might as well be abolished, as the duty of protecting OFWs will now be in the hands of “predatory private insurance companies." – Jerrie M. Abella/KBK, GMANews.TV


Reply With Quote
Alt Today
MabuhayCity
OFW Community
 
Join Date: May 2009
Posts: 262,043
Registered Members: 48,884
Forum Photo Gallery: 2,399
Comments: 991

Bahaytalaan.ph - Azure Beach Resort Condo listed by Klaudia Koronel
  #2  
Old 10-21-2010, 12:04 AM
Senior Member
 
Join Date: Apr 2008
Posts: 1,429
Forum Photo Gallery: 554
Comments: 22
Recipes: 1
Default Re: POEA Says Recruiters must pay insurance for OFWs

DOLE warns recruiters vs passing on insurance costs to OFWs

JERRIE ABELLA, GMANews.TV
10/20/2010

Labor officials sternly reminded recruitment firms Wednesday against passing on to prospective overseas Filipino workers the cost of their mandatory insurance coverage.

The Department of Labor and Employment (DOLE) said the Philippine Overseas Employment Administration (POEA) is already monitoring potential violators.

"The insurance coverage shall be effective for the duration of the worker’s employment contract and shall at least cover the benefits provided for by the Omnibus Rules and Regulations Implementing Republic Act 8042 as amended by R.A. 10022," DOLE Secretary Rosalinda Baldoz said in an article posted on the DOLE website.

She added POEA under Administrator Jennifer Manalili has vowed to strictly monitor agencies trying to circumvent the law.

Under Republic Act 10022, licensed recruitment and manning agencies or foreign employers shall bear the cost of the insurance coverage of workers.

However, insurance coverage is optional for name hires, rehires (balik-manggagawa or vacationing workers) as well as workers hired through government-to-government arrangement.

These workers may request their foreign employers to pay the cost of insurance or they themselves may pay the premium.

Republic Act 10022 requires recruitment agencies to shoulder the following insurance costs:
the Overseas Workers Welfare Administration life insurance of P100,000 for natural death;
P200,000 for accidental death;
P100,000 for total permanent disability;
P50,000 burial benefits;
$15,000 in case of accidental death;
$10,000 in case of natural death; and
$7,500 in case of permanent disablement, including repatriation costs, subsistence allowance benefit, money claims, compassionate visit, medical evacuation and medical repatriation.

The insurance coverage guidelines were signed on September 8 and published in a newspaper on September 17.

"Hence, the insurance policy has become a mandatory requirement for processing of OFW contracts and overseas employment certificates (OECs)," the DOLE said.

Baldoz said a certificate of cover (COC) provided by an insurance firm licensed and certified by the Insurance Commission (IC0), is now required before the issuance of OECs or exit clearance of agency-hired OFWs.

She said a certificate of entry or other proofs of insurance coverage from the manning agency shall be accepted for seafarers if the vessel is covered by protection and indemnity.

The coverage must also conform to POEA rules and regulations and the POEA Standard Terms and Conditions Governing the Overseas Employment of Filipino Seafarers on Board Ocean-Going Ships. –VVP, GMANews.TV
Reply With Quote
  #3  
Old 10-25-2010, 11:44 PM
Senior Member
 

Join Date: Aug 2009
Posts: 275
Forum Photo Gallery: 142
Comments: 4
Default Re: POEA Says Recruiters must pay insurance for OFWs

Government cautioned on compulsory insurance coverage


By Jerome Aning
Philippine Daily Inquirer First Posted 08:12:00 10/25/2010

Overseas Filipino workers’ groups and recruitment agencies have reiterated their concern over the looming enforcement of compulsory insurance coverage for all deployed OFWs, as provided by the amended Migrant Workers Act.

Migrante-Middle East, an OFW group, wrote Labor Secretary Rosalinda Baldoz on October 24 asking the government to make sure that recruitment and manning agencies would not pass on to OFWs the cost of the insurance premium which, under new law, should be borne by the recruiters.

Recruitment industry groups are reportedly lobbying for reconsideration on the compulsory insurance policy from the Philippine Overseas Employment Agency, which is expected to have promulgated implementing rules on the provision by next week.

However, two recruitment industry consultants said recruiters could easily circumvent the requirement and indirectly collect the insurance costs by jacking up placement and service fees collected on the recruits.

“In Asia, the insurance cost can be indirectly collected by local recruiters from the overseas brokers, who would then increase the service fees that the recruits will have to pay. In the Middle East, the recruiters and brokers can demand bigger salary deductions from the recruit. This is the reality,” consultant Emmanuel Geslani said in a phone interview.

Geslani, a recruitment industry leader and practitioner for three decades, said the government might also end up using taxpayers’ money to pay for the insurance of OFWs deployed through government-to-government deals, such as those being sent to South Korea.

“The government has to realize that the present situation [of OFWs being made to pay for all deployment costs] will continue since in 95 percent of all Asian destinations, employers and local brokers are not covered by state regulations,” added Lito Soriano, another consultant and a former OFW himself.

Soriano and Geslani also questioned if insurance companies would take a big risk in covering big numbers of OFWs who have been deployed to countries embroiled in conflict.

Insurance firms would have to pay for all OFWs who get killed or injured, or evacuated, the number of which could reach into thousands as what happened in Kuwait during the first Gulf War and in Lebanon during the Israeli-Hezbollah confrontation.

However, Migrante-Mideast regional coordinator John Leonard Monterona said posing such a scenario was a “silly excuse.”

“In war-torn countries like Iraq and Afghanistan, and in places where there is a high incidence of abuses like Jordan and Lebanon, there are existing deployment bans. If I were a recruiter, I would not send or deploy OFWs in countries where the risk is very high,” he said in reply to query from the Philippine Daily Inquirer sent through email.

The Saudi Arabia-based OFW said the labor department and the POEA should qualify the insurers to be hired by the recruiters “to prevent conflict of interest and possible collaboration between them in circumventing the insurance provision.”

Soriano said forcing recruiters to pay for the insurance would affect their viability.

“The agencies that don’t pass on the insurance cost to either OFWs or employers are at risk of collapsing. The Insurance Commission’s prescribed premium will wipe out their profit margin,” he said.

He explained that overseas employment agencies and brokers get the lion’s share of the deployment profits.

“If a Philippine recruiter—which is already collecting the legal one-month’s salary placement fee at the average of $450 and remitting fees to foreign brokers for recruitment processing and overhead costs of $300 plus—is made to pay the additional $150-$200 insurance, its business is over, closed,” Soriano said.

Monterona said he would also like to know what would happen to the Overseas Workers Welfare Administration, which has been providing for life insurance, death benefits, and other services if the private insurers took over.

As OWWA “has not been very useful and helpful to distressed OFWs,” the OFWs should no longer be required to pay the $25 compulsory contribution, Monterona said.

This might mean, however, that OWWA would have to be phased out since it would no longer have a fund source. He said Migrante would be asking the labor department to clarify the situation of the OWWA, which is currently holding in trust funds estimated at P12 billion.

The recruiters are also facing a loss of market as the Department of Foreign Affairs is expected to come out next week with a list of destination countries where migrant workers rights are guaranteed and where OFW deployment may be permitted.

Geslani and Soriano said nearly all the top 10 destinations of OFWs, mostly Middle Eastern countries, lack or have inadequate local laws protecting migrant workers.

“There are more than a dozen relevant questions that, OFWs and recruitment agencies feel, need attention by the government and the congressional oversight committee. I hope all matters can be resolved as I fear that some elements of the recruitment industry may consider challenging the new law as it will put in question the survival of the private overseas employment program,” he said.
Reply With Quote
  #4  
Old 11-08-2010, 02:51 AM
Senior Member
 

Join Date: Jul 2008
Posts: 279
Forum Photo Gallery: 61
Comments: 6
Default Re: POEA Says Recruiters must pay insurance for OFWs

Recruiters 'strike' to protest mandated insurance

INQUIRER.net First Posted 22:04:00 11/07/2010

Recruitment agencies have vowed to stop processing workers due for deployment over unresolved issues on the compulsory liability insurance mandated by a provision in the amended Migrant Workers and Overseas Filipinos Act for 2009, recruitment consultant Emmanuel Geslani said in a news release Sunday.

Citing the Philippine Overseas Employment Administration, he said the new requirement will take effect Monday, 8 November 2010.

The Certificate of Cover for life and non-life benefits will be one of the documents to be submitted by recruitment agencies in order to acquire an Overseas Employment Certificate (OEC), which is the travel document recognized by the Bureau of Immigration at the country’s exit points.

The new requirement is on top of the fees paid to POEA, the Overseas Workers Welfare Administration, and the Philippine Health Insurance Corp. usually totalling P2,000. The mandated insurance will cost the recruiters another P5,000 to P7,000 per worker.

Geslani said several recruitment association leaders have urged their respective members to unite and join the “protest action” against the high premium for the deployment of their selected workers as required by the new law, Republic Act 10022.

He thus urged the Insurance Commission irons out the kinks in the insurance policies offered by a few insurance companies which it has so far accredited.

The Insurance Commission has agreed that the “free market” principle will cover the insurance companies but some recruitment agencies do not believe in the accredited insurance consortiums’ qualification as insurers, their underwriting principles, and their capability to sustain the cover.

Geslani said insurance companies are racing to have their policy proposal accredited by the Insurance Commission because the compulsory insurance scheme takes effect November 8.
Reply With Quote
  #5  
Old 11-12-2010, 01:27 PM
hfl's Avatar
hfl hfl is offline
Senior Member
 

Join Date: Apr 2008
Posts: 1,388
Forum Photo Gallery: 293
Comments: 15
Recipes: 1
Default Re: POEA Says Recruiters must pay insurance for OFWs

POEA on mandatory insurance: We’re just implementing law

11/12/201

Amid mounting criticism against the government’s new policy on mandatory insurance for overseas workers, the Philippine Overseas Employment Administration (POEA) on Monday maintained it is merely implementing the law.

Republic Act 10022, an amendatory law to RA 8042 or the Migrant Workers and Overseas Filipinos Act, now requires insurance coverage for overseas Filipino workers. The POEA is mandated to implement the law, administrator Jennifer Jardin-Manalili said in a statement.

“With the law already in effect, the POEA is now under obligation to implement the provision on mandatory insurance cover for agency-hired OFWs leaving the country for the first time or those under new contracts of employment," Manalili said.

The POEA administrator’s statement came after some 100 employers in Hong Kong reportedly suspended the hiring of Filipino domestic helpers. The employers said the new policy is unfair as Hong Kong labor laws already require them to secure insurance coverage for foreign workers.

The POEA recognizes that some countries or destinations provide insurance policies for OFWs, Manalili said, but these do not cover all risks required under RA 10022.

RA 10022 mandates that every departing newly hired OFW who is processed through an agency be covered by insurance to answer for accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance benefit, money claims arising from the employer’s liability, compassionate visit, medical evacuation, and medical repatriation.

The POEA has thus asked Labor secretary Rosalinda Baldoz to “immediately" convene the inter-agency committee on insurance to discuss the issues in implementing the compulsory insurance.

The committee is composed of representatives of the Department of Labor and Employment, Insurance Commission, National Labor Research Commission, and the POEA.

“Being guided by the mandate of law, I believe POEA does not have the authority or discretion to deviate from it and we have to seek guidance from Congress," Manalili added.

She also clarified that rehires or balik-manggagawa workers are not covered by mandatory insurance requirement. OFWs now serving their contracts in Hong Kong are thus not affected, she said.

She added that insurance coverage is optional for name-hired workers, or those who did not go through agencies, and for those processed under government-to-government arrangements.—Jerrie M. Abella/JV, GMANews.TV
Reply With Quote
  #6  
Old 11-16-2010, 12:14 AM
hfl's Avatar
hfl hfl is offline
Senior Member
 

Join Date: Apr 2008
Posts: 1,388
Forum Photo Gallery: 293
Comments: 15
Recipes: 1
Default Re: POEA Says Recruiters must pay insurance for OFWs

Labor execs to meet with VP Binay on compulsory insurance


INQUIRER.net First Posted 13:25:00 11/15/2010

Labor officials are set to meet with Vice President Jejomar Binay to discuss with him the compulsory insurance being opposed by foreign employers and recruiters, the Department of Labor and Employment said in news release.

Mandatory insurance is required of all departing newly hired overseas Filipino workers and must be shouldered by either the employer or the recruitment agency. It is a key provision of Republic Act 10022, the amendatory legislation to RA 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995.

The provision mandates the following insurance: for accidental death, natural death, permanent total disability, repatriation cost of worker, subsistence allowance benefit, money claims arising from the employer’s liability, compassionate visit, medical evaluation, and medical repatriation.

“I will be meeting with the Vice President this week. One of the agenda will be to provide him an update on what’s happening in the implementation of the mandatory insurance for overseas Filipino workers,” DoLE Secretary Rosalinda Baldoz said.

She will also discuss with the vice president other issues on overseas employment.

Aside from Baldoz, the other labor officials who will meet with Binay are: Undersecretary Hans Leo Cacdac in lieu of Undersecretary Danilo Cruz who is attending the Global Forum on Migration and Development in South America, administrator Jennifer Manalili of the Philippine Overseas Employment Administration, and chairman Jose Nograles of the National Labor Relations Commission.

“I will also invite to the meeting the heads of the Insurance Commission,” she said.

Since it took effect this year, the mandatory insurance has been met with opposition by foreign employers from Hong Kong and Taiwan and some overseas recruitment agencies in the Philippines who said it will result in fewer job orders and the termination of employment of OFWs. They all asked for exemption from the new law.

Baldoz admitted that one aim of the meeting with the Vice President is to look into the nature and extent of the complaints against the insurance.

The POEA, which implements the insurance, had explained though that it has no discretion to deviate from the law.

“With the law already in effect, the POEA is under obligation to implement the provision of RA 10022 on mandatory insurance cover for agency-hired workers leaving the country for the first time or those under new contracts for employment,” POEA Administrator Manalili had said.
Reply With Quote
  #7  
Old 12-01-2010, 10:45 AM
Senior Member
 

Join Date: Jul 2008
Posts: 279
Forum Photo Gallery: 61
Comments: 6
Default Re: POEA Says Recruiters must pay insurance for OFWs

House to probe mandatory OFW insurance

11/30/2010

The House of Representatives is set to start an inquiry into the mandatory insurance imposed on overseas Filipino workers amid complaints it will do more harm than good to migrant workers.

Akbayan partylist Representative Walden Bello, chairman of the committee on overseas workers affairs (COWA), said that based on the inquiry, the body might recommend a moratorium on the implementation of the insurance while under review by joint congressional oversight committee.

“The committee received a number of reports that suggest the mandatory insurance policy as it is implemented now does more harm than good for our migrant workers,” Bello said in a statement.

“We have to start investigating this,” he said. “We will also look into a moratorium on the implementation of the mandatory insurance policy.”

Provided for under the amended Migrants Workers Act, the new policy mandates that the departing Filipino worker pay $144 in insurance coverage for a two-year contract, the said amount of which shall be shouldered by the recruiter.

Bello quoted reports that because of the new policy, the Philippine Overseas Employment Agency noted a 50 percent decline in the number of contracts processed by various recruitment agencies.

Migrant workers’ organizations and employment agencies also complained that the mandatory insurance is redundant, particularly, in some countries like Hong Kong, where there is an insurance system covering risk areas.

“We will continue to monitor and receive complaints from OFWs and we urge migrant workers groups to participate in finding resolution to this matter,” Bello said.

The hearing is tentatively scheduled next week.

Inquirer.net
Reply With Quote
OFW Community
Reply



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
OFWs and their Families needs insurance, too. myphilamlife Pinoys in Saudi Arabia 0 06-19-2010 11:10 AM
Returning OFWs must go on self-quarantine, says POEA detox Pinoys Abroad 0 06-14-2009 05:57 PM
Only 3,325 OFWs in CNMI have OWWA life insurance ascii_code Pinoys in North America 0 03-25-2009 10:55 AM
Recruiters group urges Congress to pass OFW liability insurance bill nesotos Pinoys Abroad 0 02-10-2009 03:28 AM
POEA not remiss in warning OFWs against illegal recruiters' nesotos Pinoys Abroad 0 01-10-2009 08:47 AM


All times are GMT +8. The time now is 06:19 PM.


Forum Tools
OFW Resources
OFW eCards
Profile Photo Rate
Bahaytalaan.ph - Azure Beach Resort Condo listed by Klaudia Koronel
bahaytalaan.ph - Philippines Home Listings
Bahaytalaan.ph - Azure Beach Resort Condo listed by Klaudia Koronel


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
Search Engine Optimization by vBSEO 3.6.0 PL2
   

Custom Search