MANDATORY PERSONAL ACCIDENT AND LIFE INSURANCE COVERAGE

“SECTION 1. Mandatory Personal Accident and Life Insurance Requirement.
All overseas landbased workers shall be provided both life and personal
accident insurance. The amount of life insurance coverage shall be
P50,000.00 maximum face value; provide, however, that if death is due to
accident, murder or assault, an equal amount of P50,000.00 insurance
coverage shall be due in addition to the amount of life insurance. This
mandatory life and personal accident insurance shall be provided by the
employer without any cost to the worker. The personal accident
insurance shall cover accidental death, dismemberment and disability;
provided, however, that should the subsisting insurance package provide
for a superior coverage, the same should be deemed compliance with this
requirement.”

Following a thorough study of the insurance program for overseas
workers, the Secretary of Labor and Employment thru Department Order No.
14 Series of 1991, mandated that, effective 01 July 1991, all departing
Filipino overseas landbased workers shall be provided by the Overseas
Workers Welfare Administration (OWWA) with mandatory life and personal
accident insurance with a minimum face value of P25,000.00 at no cost to
the workers. Guidelines of the said coverage are provided for in the
abovementioned Department Order.

To ensure compliance with the aforecited provision of the Rules and
Regulations Governing Overseas Employment, As Amended, and considering
that Department Order No. 14, Series of 1991 has provided for P25,000.00
coverage, all employers/agencies therefore, shall provide the remaining
life and personal accident insurance coverage with a face value of
P25,000.00 to all its hired landbased overseas workers subject to the
same guidelines as provided for in Department Order No. 14, Series of
1991. This remaining coverage shall be provided for at no cost to the
workers. Employers/agencies may provide for a superior remaining or
additional coverage and the same shall be deemed compliance with this
requirement.

This Order takes effect immediately.

For strict compliance.

Adopted: 1991
Filed: September 20, 1991

(Sgd.) JOSE N. SARMIENTO
Administrator