DZIQ: Mandatory insurance causes 52% drop in OFW deployment

MANILA, Philippines—The Philippine Overseas Employment Administration (POEA) has rejected a proposal by recruitment agencies to suspend the implementation of the law providing insurance coverage for overseas Filipino workers, which since its implementation this month has resulted in a 52 percent drop in deployments abroad, POEA Administrator Jennifer Manalili said Friday.

In an interview with Radyo Inquirer’s Marvin Javier and Hannah Señeres on their program “Bantay ng OFW,” Manalili said this was the decision reached by the governing board of the POEA Thursday, a day after representatives of recruitment agencies and the Insurance Commission met to discuss concerns about Republic Act 8042, which took effect last November 8.

In Wednesday’s meeting, Manalili said recruitment agencies questioned the high and flat rates set by the Insurance Commission for the coverage of Filipinos who will be working abroad.

Under the law, insurance coverage for land-based workers is $72 and $100 for seafarers.

Hence agency representatives asked for a suspension of the implementation of the mandatory insurance for OFWs, which was discussed and decided on at the meeting of the POEA governing board Thursday.

When asked how the implementation of the mandatory insurance was affecting the deployment of workers abroad, Manalili admitted that the first three days resulted in a 52 percent drop in the processing of OFW contracts or from the more than 1,000 daily average to 607.

But Manalili added that in the following days after, processing picked up slightly although not to its old level.

Manalili assured recruiters that the Insurance Commission was considering a proposal to set the $72 as the ceiling for the insurance coverage and to allow any price lower than that.

“Let the market forces work,” the POEA chief said.

At the same time, Manalili said it was illegal for recruitment agencies to pass the burden of paying the insurance to OFWs. –INQUIRER.net