Question & AnswerQ&A (INSURANCE COMMISSION)
The State's policy is to provide adequate protection to OFWs by ensuring their coverage under the compulsory insurance requirement mandated by Section 37-A of the Migrant Workers and Overseas Filipinos Act of 1995, as amended.
The recruitment/manning agency deploying the migrant worker is responsible for securing the compulsory insurance contract at no cost to the worker.
Only reputable private life, non-life, or composite insurance companies licensed by the Insurance Commission with at least five years of operation and a net worth of at least Php500 million, with IC-approved standard policies, may provide coverage.
No, the premium must be paid in full by the recruitment/manning agency and must not be charged directly or indirectly to the migrant worker.
The minimum benefits include accidental death (US$15,000), natural death (US$10,000), permanent total disablement (US$7,500), repatriation costs, subsistence allowance (US$100/month for up to 6 months), money claims based on salary, compassionate visit, medical evacuation, and medical repatriation.
The recruitment/manning agency will lose its license, and its officers and employees shall be perpetually disqualified from engaging in overseas recruitment business, aside from other liabilities under existing laws.
The Insurance Commission certifies qualified insurers, approves policy forms, monitors compliance, conducts examinations, may impose penalties such as fines and suspensions, and resolves disputes involving insurance claims.
They must present a written notice of claim with supporting documents to the insurance provider, which shall ascertain and pay the claim within 10 days from submission of complete documents.
The IC handles mediation or adjudication of insurance disputes, while the NLRC has exclusive jurisdiction to enforce decisions or settlement agreements against recruitment/manning agencies or insurers.
Seafarers covered by indemnity cover provided to vessels are governed by POEA rules and the Seafarers Standard Employment Contract. The guidelines apply to principals/shipowners obtaining insurance from local insurers, with claims enforcement through the NLRC or arbitration when applicable.