Mandatory Insurance A Burden To OFWs, Says United Filipinos in Hong Kong Chairman Dolores Pelaez

The Philippine Overseas Employment Administration (POEA) has implemented a mandatory insurance but OFW groups think that it will only affect the employment of Overseas Filipino Workers.

According to the Chairman of United Filipinos in Hong Kong (Unifil-Migrante-HK) Dolores BalladaresPelaez, the said resolution might discourage the foreign employers from hiring OFWs because they will have to pay additional charges.

In Hong Kong alone, the insurance costs HK$1,200. The prices differ per country.

“The new mandatory insurance order will just add to the list of expenses that employers are made to pay for and will merely increase friction between the employer and worker,” says Pelaez. “This new fee might even lead to domestic workers losing their jobs.”

Pelaez also claims that their group will reject the implementation of the said policy and referred to it as another “money-making-scheme” of the government.

In 2016, the POEA amended the rules requiring principals to pay for the insurance of OFWs. A certificate of insurance is also a major requirement that an OFW needs to submit before they can get documented in POEA.

Before the amendment, recruitment agencies were the one paying for this insurance coverage.

Pelaez also expressed her worries if employers will really pay for the insurance coverage of their employees.

“There is no mechanism to ensure that the employer will pay for it,” says Pelaez.

Regardless of any concern, POEA is open to assist it.

“All of these will be addressed by POEA’s existing riles like for the filing of appropriate cases [against the erring employer],” says Olalia.