MANILA, Philippines - In the first two weeks of the implementation of the compulsory insurance requirement under the amended Migrant Workers Act, the number of overseas employment contracts processed dropped 52 percent, according to local recruiters.
Host countries already offering insurance for foreign workers, including Hong Kong, Taiwan, and Middle East countries, contest the insurance scheme, which took effect last Nov. 8.
Recruiters believe the number of processed applications will continue to drop.
Recruiters have called for the deferment of the implementation of the insurance scheme until the Insurance Commission has come up with a lower insurance premium acceptable to the industry.
Under the law, the Philippine Overseas Employment Administration would require a certificate of insurance coverage before using an overseas employment certificate.
Local recruiters said they could not afford the minimum $72 insurance premium for land-based workers and $100 for sea-based workers.
Recruitment agencies also fear that they may be forced to shoulder the claims of the workers if insurance agencies handling the accounts become short of resources.