Title
Compulsory Insurance for Agency-Hired OFWs
Law
Poea Memorandum Circular No. 09, S. 2010
Decision Date
Oct 21, 2010
Compulsory insurance coverage is mandated for all agency-hired overseas Filipino workers, ensuring protection against various contingencies such as accidental death, disability, and medical emergencies, with costs borne by recruitment agencies or employers, not the workers themselves.
A

Duration and Minimum Coverage of Insurance Policy

  • Insurance coverage is effective for the entire duration of the worker's employment contract.
  • Minimum contingencies covered include:
    • Accidental death
    • Natural death
    • Permanent total disability
    • Repatriation cost
    • Subsistence allowance
    • Settlement allowance
    • Compassionate visit
    • Medical evacuation
    • Medical repatriation

Responsibility for Payment of Insurance

  • Recruitment or manning agency, or the foreign principal/employer, must pay for the insurance cost.
  • Under no circumstances shall the cost be charged directly or indirectly to the agency-hired OFW.

Requirements for Issuance of Overseas Employment Certificate (POEA Exit Clearance)

  • Recruitment/manning agencies must submit specific documentary proof of insurance when processing OFWs' employment documents.
  • For landbased workers:
    • Present original insurance policy or Proof of Cover for group insurance, including details of worker, principal, insurance provider, and policy number.
  • For seafarers:
    • Manning agencies must submit certificate or proof of cover signed by the principal if insurance is from foreign insurers.
    • If vessels lack indemnity insurance, agencies must procure insurance from certified local insurance providers.
  • Agencies using in-house processing schemes must submit insurance policies or indemnity coverage before deployment.

Penal Provisions for Non-Compliance

  • Violation of these guidelines by recruitment/manning agencies or foreign principals is grounds for sanctions under POEA rules and other applicable laws.
  • Sanctions can range from penalties to possible suspension or revocation of licenses.

Effectivity

  • These guidelines take effect 15 days after publication in a newspaper of general circulation.

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