Pinoy workers in Hong Kong protest compulsory insurance

HONG KONG – Employers here are protesting the new compulsory insurance requirement for overseas Filipino workers stipulated in the amended Migrant Workers Act of 1995, saying this constitutes double insurance which would overburden them and lead to job loss.                                     

The amendment to the law, which took effect last Nov. 8, requires employers to pay $144 (P6,200) in insurance premiums for Filipino workers they hire. The Philippine Overseas Employment Administration (POEA) issued a memorandum circular last Oct. 21 detailing the insurance coverage. 

The Hong Kong Employees’ Compensation Ordinance requires an employer to purchase an insurance policy for a domestic helper to cover all liabilities. The comprehensive insurance costs around HK$1,000 (P5,560) a year.

Members of the Liberal Party chaired by lawmaker Miriam Lau held a protest in front of the Philippine Consulate in Admiralty the other day to express disapproval of the new insurance requirement.

“We don’t think the policy is a fair one. We hope the Philippine government will shelve this policy for the time being and we hope that a dialogue will take place between our government officials and Philippine officials to see how this matter will be resolved,” Lau told reporters.

“We do not support double insurance. It overburdens the employer having to buy two (insurance) policies.” 

Joseph Law, chairman of the Hong Kong Employers of Domestic Helpers Association, said the double insurance is unnecessary because the present insurance coverage provided by Hong Kong employers is already comprehensive.

“We have a comprehensive policy for our workers for them to consult a doctor, take medication, hospitalization and surgical expenses, and in the unfortunate return of the body of the worker,” Law said.                                                          

He said the minimum coverage indicated in the circular issued by the POEA is already covered by the existing insurance policy for Filipino workers such as coverage for accidental and natural death, permanent total disability, repatriation, subsistence allowance, settlement claims, compassionate visit and medical evacuation.

“We got this Circular Number 9 a few days back. The insurance already covers the items identified here. In Hong Kong, the situation is different. We already offer them the best protection. The question is since we already have such an arrangement, is it fair to pay double?” Law said.               

He also questioned the designation of only a few Philippine-based insurance companies to receive the premiums for the new insurance scheme.

“If an employer wants to hire a maid from the Philippines, the regulations have to be reasonable. Then they would have to pay insurance in the Philippines. Why not here in Hong Kong? It doesn’t make sense,” Law said. “POEA has designated a few insurance companies, and not all foreign insurance companies with overseas offices.”

The United Filipinos in Hong Kong (UNIFIL-Migrante-HK) said the compulsory insurance policy may be necessary for Filipino workers in many countries, but not in Hong Kong.

UNIFIL-Migrante-HK secretary-general Eman Villanueva said the additional insurance requirement for Filipino workers in Hong Kong might trigger job losses.

“Why should there be another insurance policy? Rather than protection, this will create anxiety to the workers. This might cause job losses, or workers may be compelled to shoulder the additional cost if only to keep their jobs,” Villanueva said.

He said the POEA should revise the policy to cover only workers in countries that do not require employers to provide insurance for their workers.

“The government should consider that here in Hong Kong, that kind of protection already exists. They just have to make sure that the benefits are used by the workers and that the insurance costs are not passed on to workers,” Villanueva said.                                                                                       

Deputy Consul General Kira Christianne Danganan-Azucena, meanwhile, said they were caught off guard by the protest and do not know yet how to respond to the inquiries of stakeholders.                                                                       

“We’re responding by making sure that their sentiments reach the proper authorities in Manila,” Danganan-Azucena said.                                                                                          

She said that while the law explicitly says that workers should not pay the premium, it is not clear if the employer or the recruitment agency should shoulder the payment for the premiums.      

The Society of Hong Kong Accredited Recruiters in the Philippines (SHARP) earlier said their counterpart agencies in Hong Kong are planning to stop the processing of contracts of Filipino household workers to express their disapproval of the new insurance requirement.

SHARP president Alfredo Palmiery said domestic helpers in Hong Kong are covered by a HK$200,000 insurance which is equivalent to P1.2 million. Hong Kong hires over 30,000 Filipino workers annually.

Latest data from Hong Kong’s Immigration Department showed that there are 136,723 Filipino domestic workers in the country as of last month.

Last year, Indonesians overtook Filipinos in the foreign domestic helper market by 4,000.