RIYADH: The compulsory imposition of insurance coverage for new Overseas Filipino Workers (OFWs) has drawn a mixed reaction from OFWs in the Kingdom.
"Recruitment agencies in the Philippines should agree to selective insurance coverage for new Overseas Filipino Workers (OFWs) they deploy," said Amen G. Panolong, secretary general of the Riyadh-based Integrated Mindanao Economic Forum.
Under the amended Migrant Workers Act, the compulsory insurance should be of no cost to OFWs and should be effective for the duration of their employment.
However, Victor Fernandez, president of the Philippine Association of Service Exporters (PASEI) in Manila, said that the premium set by insurance companies for migrant workers is too high and takes up the biggest share in placement fees they collect from OFWs.
Annual insurance premium is $77. Only private insurance companies duly registered with the Insurance Commission may provide the coverage.
On the ABS-CBN news site, Fernandez added that the mandated insurance comes on top of other expenses they have to shoulder for OFWs, such as the Overseas Workers Welfare Administration (OWWA) and Philhealth fees.
Panolong said that recruitment agencies have been complaining over the government because it's an added cost for them. "But they have to be reasonable. They should agree to selective insurance coverage," he said. He said that this selective coverage should include the most vulnerable professions that OFWs are in, such as maids, nannies, family drivers, and farm workers.
"These OFWs receive low salaries. To make their situation worse, they sometimes don't get paid. If they do, it's sometimes delayed. So, the insurance protection provided by the recruitment agency is helpful if something untoward happens to them. It's an additional benefit to what they would receive from the Overseas Workers Welfare Administration (OWWA)," he said. He said that for this reason, the government and recruitment agencies should "sit down to get their act together."
"They should rationalize the dispensing of insurance coverage for first-time OFWs. Some will say that this is in duplication of OWWA benefits. If this is true, then let it be in favor of the OFWs receiving low salaries," he said.
He noted, however, "in complying with the requirement, local recruitment agencies are charging employers for the cost of insurance."
"A friend of mine was recruiting a maid, and the recruitment agency in the Philippines was charging him $200," he said. The annual cost of insurance coverage is $77 per year.
In Jeddah, however, Corly N. Obtinala, deputy secretary general for advocacy and political affairs at the Kasapi Congress, said that the requirement should cover all OFWs.
"This was our stand when we were consulted. That's why we also suggested that the insurance premium would only be $10 per OFW. However, recruitment agencies seem to have passed on the cost to employers," he said.
"Originally, it was the recruitment agencies who suggested that new OFWs be covered by insurance. Obviously, they did that for their own benefits."
But when Senator Jinggoy Estrada made many changes, Obtinala said, such as passing on to recruitment agencies the cost of repatriation if an OFW is turned down by an employer, they started complaining. Estrada is chairman of the committee concerning OFWs at the Senate.
Meanwhile, Vice-President Jejomar Binay, presidential adviser on OFWs, has urged lawmakers to suspend the mandatory insurance.
In a statement, he said that there is a need to review the Republic Act 10022, or the amended Migrant Workers Act, due to complaints from local recruitment agencies.
"Considering the complaints, I believe it is necessary to re-evaluate RA10022. That is why I'm calling on the labor committees of the Senate and the House of Representatives Overseas Workers Affairs to defer the implementation of the law pending its review," he said.
© Arab News 2010
