OFW Compulsory Insurance: What You're Covered For Under RA 10022
Know your compulsory insurance coverage as an OFW — what benefits you're entitled to, who pays for it, and what to do if your agency tries to charge you.
Under Section 37-A of Republic Act No. 10022, all agency-hired land-based overseas Filipino workers must be covered by compulsory insurance before deployment. This is not optional and it is not something you should pay for out of your own pocket. The law is clear: the recruitment agency or the foreign principal (employer) must pay for this insurance. If your agency asks you to shoulder the cost of compulsory insurance, that is a violation of the law. The insurance must be obtained from an insurer accredited by the Insurance Commission of the Philippines.
Coverage for death and disability
The compulsory insurance provides financial protection in the most serious situations. For accidental death, the minimum coverage is fifteen thousand US dollars (USD 15,000). For natural death — meaning death from illness or non-accidental causes — the minimum coverage is ten thousand US dollars (USD 10,000). For permanent total disablement, the minimum is seven thousand five hundred US dollars (USD 7,500). These are minimum amounts; your actual policy may provide higher coverage depending on your destination country and employer. The benefits are paid directly to you or to your designated beneficiaries.
Repatriation and medical evacuation
If you need to be sent home due to contract termination, employer abuse, or other covered reasons, the compulsory insurance covers the actual cost of your repatriation. This includes your airfare and related transportation costs back to the Philippines. If you face a medical emergency that requires evacuation — for example, being transferred to another country or facility for treatment that is not available locally — the insurance covers the actual cost of medical evacuation as well. You should never have to pay for your own repatriation when the cause is not your fault.
Subsistence allowance and compassionate visit
The compulsory insurance includes a subsistence allowance for situations where you are stranded or left without support. If you are in a foreign country and unable to work through no fault of your own — for example, if your employer abandons you or your workplace shuts down — you are entitled to a subsistence allowance of one hundred US dollars (USD 100) per day for a maximum of thirty days. Additionally, if you are hospitalized for seven or more consecutive days, the insurance covers a compassionate visit: a round-trip economy class airfare for one immediate family member to visit you at the hospital.
Maternity benefit for women OFWs
Women OFWs covered by compulsory insurance are entitled to a maternity benefit of four thousand five hundred US dollars (USD 4,500). This benefit helps cover the costs of childbirth while working abroad. It is separate from and in addition to your SSS maternity benefit in the Philippines. Make sure your insurance policy explicitly includes this provision, and keep copies of all medical documents related to your pregnancy and delivery for filing your claim.
Direct hires and voluntary insurance
It is important to note that the compulsory insurance requirement under RA 10022 applies specifically to OFWs hired through licensed recruitment agencies. If you are a direct hire — meaning you were recruited directly by the foreign employer without going through a Philippine agency — you are exempt from the compulsory insurance requirement. However, this does not mean you should go without coverage. Direct hires are strongly encouraged to purchase voluntary insurance to protect themselves. The Philippine government offers voluntary insurance programs for OFWs, and private insurers also offer policies tailored for overseas workers.
What to do if your rights are violated
If your recruitment agency charges you for compulsory insurance, refuses to provide proof of coverage, or gives you a policy that does not meet the minimum benefits required by law, report the violation to the Department of Migrant Workers. Keep all receipts and documents as evidence. You can also contact the Insurance Commission if you suspect that the insurer is not properly accredited. Before you deploy, upload your employment contract to PlainDoc to verify that your insurance provisions meet the minimum requirements under RA 10022 — because knowing your coverage before you leave is always better than discovering gaps when you need help the most.