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  • Writer's pictureABBA Personnel Services Inc.

Agencies Now Required to Buy Insurance for Worker

Starting November 08, 2010, all private recruitment agencies in the Philippines will have to buy insurance for all the workers they deploy to any country in the world. The insurance requirement is part of the Omnibus Rules Implementing Republic Act 8042 as amended by R.A. 10022, which mandates insurance protection for workers deployed by agencies. Those deployed by the government, workers rehired by their previous employers, and vacationing workers are not covered by the insurance requirement.

The insurance coverage include benefits on death, disablement, termination, settlement claims, compassionate visit, medical evacuation and repatriation. The law prohibits passing on the premium to the workers. Premium for the insurance are expected to be paid eventually by foreign employers. Premiums cost US $72 for workers with one - year contracts, and US $144 for those on two year contracts.

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