Insurance for Rehired Overseas Contract Workers

Department Order No. 20 (Series of 1992) requires insurance coverage for re-hired or re-contracted land-based overseas contract workers to implement Section I, Rule VIII, Book II of the Rules and Regulations Governing Overseas Employment, As Amended.
Department Order No. 14 (Series of 1991) is the earlier policy issuance under which insurance firms were servicing mandatory insurance programs for overseas land-based contract workers.
Claims processing and settlement are carried out through POEA’s prescribed office channeling assistance via the Welfare Employment Office, and coordination with the Insurance Pool Center (IPC).
Insurance coverage is issued through certificates by the Insurance Pool Center (IPC) and administratively reported to POEA and OWWA.

Re-hired or re-contracted workers must be covered by mandatory insurance under POEA Memorandum Circular No. 56 when processing through the BMPD.
The insurance cover must provide life insurance and, when applicable, additional personal accident coverage.
The insurance cover is designed to ensure continuity and efficient claims delivery through designated insurance firms and a central insurance pool system.
The circular establishes the operational framework for coverage issuance, premium payment, recordkeeping, and claims handling.

The circular applies to all re-hired or re-contracted land-based overseas contract workers passing through the Balik-Manggagawa Processing Division (BMPD) for processing.
The coverage requirement applies to workers regardless of whether they are covered under an OWWA welfare-fund scheme or are purchasing insurance from their own funds.
Insurance cover is issued through the Insurance Pool Center (IPC) for covered workers.

Life insurance coverage is set at PHP 50,000.00 maximum face value.
If death is due to accident or assault, an equal amount of PHP 50,000.00 additional insurance coverage is due on top of the life insurance amount.
Personal accident insurance must include dismemberment and disability.
Compensability for dismemberment and disability is based on the Schedule or Benefits provided in Department Order No. 20.

A nominal premium rate not exceeding PHP 204.20 is paid for every year of coverage for the mandatory minimum insurance protection.
If coverage is for more than one year, the premium amount increases proportionately.
Returning overseas contract workers required to pay the regular welfare fund contribution to OWWA receive free insurance coverage, secured by OWWA.
Other classifications of returning workers must purchase the mandatory insurance coverage using their own personal funds from the insurance pool center to be established for this purpose.

The Insurance Pool Center (IPC) issues Certificates of Cover to covered workers.
The IPC maintains a computerized central file of all workers covered by the insurance pool.
The IPC reports the central file monthly to POEA and OWWA.

Insurance coverage takes effect upon payment of the premium.
The coverage extends worldwide, on and off the job.
The coverage duration is for the duration of the Worker's Contract plus sixty (60) days after termination of the contract of employment.
In no case is the coverage duration for less than one year.

The same insurance firms presently servicing the insurance programs under Department Order No. 14 (Series of 1991) must provide the coverage for re-hired or re-contracted workers.
The insurance firms are jointly and severally liable for any claims under an insurance cover issued by the lead company designated by them.

Workers applying for an overseas employment certification must present the following documentary requirements:
- An accomplished POEA Information Sheet.
- A copy of the Insurance Cover and its official receipt.
- A passport with a valid re-entry visa/work permit or its equivalent.
If the worker is a returning worker required to pay the regular welfare fund contribution to OWWA, separate Official Receipt must be issued by OWWA.

When a claim against the insurance policy arises, POEA, through the Welfare Employment Office, assists in filing and settlement of the claim with the Insurance Pool Center.
Claim submission requires:
- A copy of the Insurance Certificate of Cover.
- A photocopy of the passport showing the date of departure and arrival of the worker.
- A Death Certificate or Medical Certificate, whichever is applicable.
- A Marriage contract if applicable.
- A certified true copy of the worker’s information sheet, secured from the Central Records Division of POEA.
The Pool acts on claims within ten (10) working days from submission of:
- The Death Certificate in cases of loss of life; or
- The Medical Certificate from the attending physician as to the extent of disability or dismemberment.
All claims filled against and settled by the Pool are reported periodically to POEA and OWWA.

POEA Memorandum Circular No. 56 takes effect on 15 July 1992.
The circular imposes a directive for strict compliance with its requirements.