Authority and organizational roles
- The Regional Welfare Offices (RWOs) implement the Insurance Benefit Program under decentralized operations.
- The Regional Operations Coordination Service (ROCS) acts as the course for fund requests by RWOs based on program availments.
- The Membership Processing Center (MPC) validates program coverage effectivity and issues electronic clearance on availments.
- The Accounting Division in the Central Office prescribes the accounting entries and related accounting procedures.
- The Regional Accountant/Designate performs bookkeeping and accounting functions and maintains required books of accounts.
- The RWO Cashier releases checks after presentation of required identification.
- The RWO Directors or their authorized representatives approve all fund disbursement requests.
Policy objectives for decentralization
- The memorandum realigns OWWA’s operational focus from the Central Office to the Regional Offices to improve delivery and accessibility of OWWA programs and services.
- The memorandum expedites processing of claims to accelerate delivery of programs and services in the regions.
- The memorandum decentralizes implementation by shifting operational responsibilities to Regional Welfare Offices (RWOs).
- The memorandum establishes controls to improve validation of coverage and prevent double availment through centralized clearing by the MPC.
Fund transfer and management mechanics
- Program funds are sourced from the existing account for the Insurance Benefit Program Fund (IBPF).
- RWOs must request funds through the ROCS, based on the regions’ last three years’ program availments.
- RWOs must open a separate bank account named the Insurance Claims Fund (ICF).
- The Central Office transfers program funds into the RWOs’ ICF.
- RWOs must use the ICF to cover payment of claims under the program.
- The RWO Directors or their authorized representatives approve all fund disbursement requests.
- Regional disbursement of checks must follow the existing signatories of vouchers and checks at the regional level.
Check release and accounting controls
- Checks are released by the RWO Cashier upon presentation of proper identification requirements.
- RWOs must follow the accounting entries and utilization procedures prescribed by the Accounting Division in the Central Office.
- The Regional Accountant/Designate performs bookkeeping and accounting functions for the program.
- A separate Book of Accounts must be maintained to record regional transactions, as prescribed by the Accounting Division in the Central Office.
Coverage validation and double-availment prevention
- Every program availment from the RWOs must first be validated by the Membership Processing Center (MPC)** as to the effectivity of coverage.
- In the absence of database networking, the MPC serves as the clearing house in the availment of claims under the program.
- Verification of RWOs is done through electronic mail.
- The MPC issues an electronic copy of Certification of Availment/No-Availment.
- RWOs must provide the MPC with a monthly list of availees through the ROCS for consolidation and control of the MPC.
Entitlement, benefit amounts, and coverage period
- Beneficiaries must show proof that the deceased OFW’s OWWA membership is in effect at the time of death to be entitled to program benefits.
- Insurance Benefit must be paid in these amounts:
- PHP 100,000.00 for natural death; and
- PHP 200,000.00 for accidental death.
- Burial Benefit is granted as a rider provision to life insurance coverage in the amount of PHP 20,000.00.
- All OFWs who paid the OWWA contribution, including those who contributed under the OWWA Voluntary Membership Program (VMP), are entitled to insurance coverage.
- Insurance coverage starts upon payment of the OWWA contribution and remains effective until expiration of employment contract, plus sixty (60) days after paid expiration.
- OFWs with no definite duration of contract, including those registered under the VMP, are covered for a maximum duration of two (2) years plus sixty (60) days.
- In no case is coverage less than one (1) year plus sixty (60) days, but it must not exceed two (2) years plus (60) days upon expiration.
- OFWs with terminal conditions (e.g., Cancer, End-stage Renal Disease, HIV Positive, Stevens Johnson’s Disease, and other similar cases) receive extended coverage, in lieu of the regular 60 days extension, but not to exceed two (2) years, if the following conditions are met:
- The illness is diagnosed during the OFW’s original duration of insurance coverage; or
- The illness is contracted during the OFW’s overseas employment.
Documentary requirements for claims
- Claimants must submit a duly accomplished application form.
- Claimants must submit a Certificate of Membership or an OWF Membership Verification Sheet issued by the MPC.
- For claimants, required identification/travel documents include:
- Passport (Landbased); and
- Seaman’s Service Record Book (Seabased).
- Claimants must submit 2 x 2 Photo of the claimant.
- Certified vital records must be obtained from LCR or NSO as applicable:
- A Marriage Certificate if the claimant is the spouse;
- A Birth Certificate and Certificate of No Marriage (CENOMAR) of the deceased OFW if the claimant is the mother or father;
- A Birth Certificate of child and Death Certificate of deceased spouse if the claimant is the child of legal age, who must be authorized by at least two of his/her siblings (if any).
- For Insurance Benefit Claims, a claimant must submit:
- A Death Certificate duly certified by LCR/NSO or by the Philippine Embassy/Consulate in the place where the death occurred;
- An Accident Report from the manning/shipping/recruitment agency and/or from the Philippine Mission/Philippine Overseas Labor Office in the place where death occurred for deaths due to accident; and
- If declared presumptively dead, a copy of the Declaration of Presumptive Death by competent authorities where the death occurred.
- For Burial Benefit Claims, a claimant must submit:
- A Receipt of payment issued by the funeral parlor/crematorium/place of interment;
- A Burial Permit.
Presumptive death benefit rule
- Death benefit payment must be reckoned from the date a worker is declared presumptively dead after the worker has been reported missing for some time, by proper authority, in accordance with law.
- Beneficiaries are entitled to burial benefits even if the body of a missing person has not been recovered and even if no burial activities have been undertaken.
Deploying agency liability for unpaid contributions
- A Recruitment/Manning/Shipping Agency that fails to pay within the prescribed period the required OWWA contribution for deployed workers must assume responsibility for providing benefits due to the OFWs or their beneficiaries equivalent to the benefits the latter is entitled to from OWWA if the OWWA contribution has been duly paid.
- Any agency found intentionally not paying OWWA contributions relative to deployment is also held liable for damages by OWWA in addition to payment of said benefits.
Repeal and modification; separability
- All existing issuances of the OWWA Secretariat and any inconsistent provisions in such issuances are deemed repealed or modified accordingly.
- OWWA Memorandum of Instructions No. 009 takes effect immediately.