Question & AnswerQ&A (POEA MEMORANDUM CIRCULAR NO. 09, S. 2010)
The purpose is to mandate the implementation of compulsory insurance coverage for all agency-hired Overseas Filipino Workers (OFWs) in accordance with Section 37-A of RA 8042, as amended by RA 10022, and the Omnibus Rules and Regulations implementing RA 8042.
Agency-hired OFWs are those hired through POEA licensed land-based recruitment or manning agencies, whether they are landbased or seabased workers.
The insurance must cover, at the minimum, accidental death, natural death, permanent total disability, repatriation cost, subsistence allowance, settlement allowance, compassionate visit, medical evacuation, and medical repatriation.
The recruitment or manning agency or the foreign principal/employer must pay the insurance cost. It must not be charged directly or indirectly to the agency-hired OFW.
The agency must present an original copy of the insurance policy for each OFW along with a one-page document detailing the worker's name, principal, insurance provider, and policy number. For group insurance, a pre-approved Proof of Cover must be issued to the individual insured OFW.
Manning agencies must submit a certificate or other proof of cover signed by the principal if the vessel is covered by policies from foreign insurance companies. If vessels are not covered by indemnity insurance, the agency must secure insurance from Philippine-licensed and certified insurers authorized to underwrite OFW insurance policies.
They must submit the insurance policies or indemnity cover of their workers to the POEA before deployment.
Violations by recruitment/manning agencies or foreign principals shall be grounds for imposition of appropriate sanctions under POEA Rules and Regulations and other applicable laws.
The guidelines took effect fifteen (15) days after their publication in a newspaper of general circulation.
The requirements are mandated under Section 37-A of RA 8042 (The Migrant Workers and Overseas Filipinos Act of 1995), as amended by Republic Act 10022, and Rule XVI of the Omnibus Rules and Regulations Implementing RA 8042.