Exemptions
- Does not apply to seafarers
- Does not apply to balik-manggagawa (vacationing OCWs)
Amount of Coverage
- Bond amount guarantees reimbursement of actual repatriation costs including airfare and reasonable related expenses
- Coverage shall not exceed PHP 20,000
- For certain countries (e.g., Japan, Hongkong, Singapore), coverage shall be at least PHP 10,000 due to lower airfare costs
Premium Rate and Payment
- Maximum premium rate of 1.75% per annum or PHP 350 per year for PHP 20,000 coverage, exclusive of tax and notarial fees
- Premium is additional to worker’s placement fee
- Paid at the designated repatriation bond center
- Proof of payment is issued to the OCW
Functions of the Repatriation Bond Center
- Accept premium payments and issue receipts and individual certificates of coverage in triplicate
- Maintain computerized central file of OCWs who posted bonds and validity periods
- Submit monthly reports/lists of covered OCWs to POEA Central Records Division and OWWA
- Settle claims within 15 days upon receipt of all required documents
Effectivity of the Bond
- Bond coverage commences upon OCW departure
- Coverage is worldwide and lasts for the duration of the employment contract
Documentation Requirements
- Individual Certificates of Coverage obtained from the Registration Bond Center
- Presented to Employment Contracts Processing Branch (ECPB) or Government Placement Branch (GPB) for processing
- Certificates forwarded to Central Records Division for recording and storage along with list of covered workers
Liability
- Panel of reinsurers is jointly and severally liable for claims under bonds issued by the administering company
Claims Procedure
- OWWA advances repatriation costs upon notice
- Covers repatriation requests regardless of cause without prior determination of responsibility
- OWWA files formal claims with Administering Company supported by:
- Copy of employment contract
- Statement of actual repatriation expenses with supporting documents (e.g., used airline tickets)
- Photocopy of passport showing departure and arrival dates and personal data
Prohibition on Cash Deposits
- Licensed agencies are prohibited from requiring cash deposits from workers to guarantee contract performance
Effectivity
- Memorandum Circular takes effect 15 days after publication
- Issued November 27, 1991 and directed for strict compliance