IC studying rules for selling insurance to OFWs
THE Insurance Commission (IC) is planning to issue a circular that will govern the sale of insurance to overseas Filipino workers (OFWs).
“We’re preparing the proper circular, but we’re coordinating with the Department of Migrant Workers (DMW) on the manner in which we’ll be executing this (to ensure they do not violate) not only of our laws, but also the laws and rules of the host country,” Insurance Commissioner Reynaldo A. Regalado told reporters.
Mr. Regalado said the circular will need to work around a law allowing insurance companies to sell policies only to Filipinos in the Philippines.
Republic Act No. 10607 or the Amended lnsurance Code deems all licenses issued to companies and agents to be valid within the Philippines only.
lC Circular Letter No. 2020-109 likewise reiterates that insurers may only insure persons or risks situated within the Philippines.
“We cannot remove that. We have to see how best we can have that implemented. There must be some way, even prior to entering a foreign country,” Mr. Regalado said.
The IC is planning a pilot program in certain countries to ensure no legal issues in selling policies to OFWs.
“We want to have one in the Middle East, one in Asia, and one in North America, at least. But we’re still not very clear on that. We have to coordinate with the Department of Foreign Affairs (DFA) also,” Mr. Regalado said.
He said he hopes the circular is released within the year.
The IC also hopes to require mandatory coverage for OFWs before they leave the Philippines.
“It’s not required yet by the DMW. We’re taking the cue from them,” he said. — Aaron Michael C. Sy