Taiwan OFWs seek exemption from new insurance

MANILA, Philippines – Overseas Filipino workers (OFWs) in Taiwan are seeking for an exemption from the mandatory insurance coverage imposed by the Philippine government, saying that it would lead to non-hiring of OFWs in Taiwan.

Filipino migrant organization Migrante International – Taiwan chapter said it “condemns” the imposition of the mandatory insurance coverage for OFWs, stressing that it would be an additional burden for OFWs, particularly in Taiwan, as it would eventually be paid by OFWs themselves.

In a statement, Migrate International – Taiwan chapter chairman Dave Chang asked the Philippine government to exempt OFWs in Taiwan and Hong Kong from the insurance coverage, saying that both require mandatory insurance coverage for foreign workers.

He said this week a Filipino applicant has been forced to pay P6,500 in insurance fee.

“This forced implementation of such insurance is only adding and putting the migrant workers in debt,” he said, adding that some Philippine recruitment firms have been collecting New Taiwan Dollar (NT$) NT$5,000 as insurance fee in advance for the rehire of Filipino workers in Taiwan.

“There is already an existing mandatory insurance coverage for foreign workers in Taiwan which are both paid monthly by employers and employees alike, with the latter paying more,” he said.

Insurance coverage includes medical and labor insurance amounting to NT$236 (US$7.75) and NT$576 (US$18.92), respectively.

However, he said there are cases where OFWs were forced to shoulder their own insurance premiums amounting to NT$11,844.

“If you add the insurance as required by Republic Act (RA) No. 10022, this would grow to NT$12,026 a month. The minimum wage in Taiwan is NT$17,280 and the OFW is left with only NT$5,436 in monthly earnings,” Chang said.

“Either the ones who drafted the new law are unaware of the situation in Taiwan and in other places where local legislation already requires mandatory insurance for foreign workers or are ignorant even of the insurance coverage of the OWWA or even where the Assistance to Nationals (ATN) fund should go to,” he said.

Under Republic Act (R.A.) 10022 or the Amended Migrant Workers Act, an Overseas Employment Certificate (OEC) or exit clearance would only be released if there is a certificate of cover (CoC) provided by the insurance company and certified by the Office of the Insurance Commission.

Under the new law, OFWs deployed through a recruitment agency should have an accidental death benefit of US$15,000; natural  death benefit of $10,000; and permanent total disablement benefit worth $7,500.

Earlier this week, Vice President and overseas Filipino workers (OFW) czar Jejomar Binay said he has requested the Insurance Commission to review the new law requiring mandatory insurance coverage among recruiters, adding that there should be an exemption for OFWs whose insurances abroad comply with or exceed the requirements stated in RA 10022.

“I have requested the office of the Insurance Commission to review the new law requiring all recruiters for compulsory insurance for OFWs,” Binay said. “I am confident that we can find a solution that will adequately protect our OFWs without causing them additional and unnecessary burden of expenses.”

Republic Act 10022 is an amended version of Republic Act 8042 or the Migrant Workers and Overseas Filipinos Act of 1995. –ROY C. MABASA and MADEL R. SABATE, Manila Bulletin