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(NAR) VOL. III NO. 1 / JANUARY - MARCH 1992
[ POEA DEPARTMENT ORDER NO. 28, S. 1991, November 13, 1991 ]
POSTING OF A REPATRIATION BOND IN LIEU OF A PERFORMANCE BOND
For the purpose of ensuring the prompt repatriation of all overseas contract workers to prevent their getting stranded as a result of the termination of their employment for cause and pursuant to the provisions of the Labor Code and Section I, Rule V, Book VII of the Rules and Regulations Implementing the Labor Code, all overseas contract workers shall post a Repatriation Bond in lieu of the performance bond under the following guidelines:
I
Repatriation Bond Coverage
All departing Filipino overseas contract workers shall post a Repatriation Bond drawn and issued locally under the following terms:
1. All overseas contract workers whose employment contract has a term of six months or longer, shall be required or post this Bond.
2. The Bond shall guarantee the reimbursement of the actual costs of repatriation including air fare from the job site and other reasonable expenses connected therewith in the event that such repatriation is necessitated by any contract violation by the overseas contract worker.
3. The Bond coverage shall in no case exceed P20,000.00. However for specific countries like Japan, Hongkong, Singapore, Malaysia, Brunei, Thailand, India and the Trust Territories and other similar areas where return air fair does not exceed P10,000.00, the coverage shall be at least P10,000.00.
The effectivity of the Bond and/or Certificate of Surety undertaking shall commence upon the departure date of the contract worker and shall be extended worldwide for the duration of the worker's employment contract.
Other terms and conditions not specifically stated in the guidelines shall be in accordance with the Repatriation Bond Policy as approved by the Insurance Commission.
II
Premium Rate and Payment
The premium shall be a maximum of P350.00 per year as established by the Insurance Commission.
The overseas contract worker may file his application for bond and pay for it at a designated center established by POEA and the Surety Companies for this purpose. Otherwise, the licensed agencies may accept their application and premium payments for transmittal to the above designated center for acknowledgment and processing by the Surety Companies.
III
Eligible Surety Companies
All Surety Companies with current year Certificates of Authority and valid Administrative Order to conduct surety business are eligible to participate provided that they constitute themselves into a reinsurance panel which shall designate an Administering Company from among themselves to administer and manage the daily operations.
The participating companies shall be jointly and solidarily liable for any claim under a bond issued by the Administering Company.
IV
Documentation Requirements
The proof of premium payment should be secured and presented to the POEA prior to the processing of the workers' overseas employment contract.
The POEA shall supervise the proper implementation of the Repatriation Bond requirements as mandated. A monthly summary report shall be provided by the Administering Company to the POEA and the Overseas Workers' Welfare Administration (OWWA).
V
Cash Deposits
In no case shall any licensed agency require cash deposits from the worker for the purpose of guaranteeing contract performance.
VI
Action on Claims
In the event that a need for repatriation arises, the OWWA shall advance the cost of repatriation upon receipt of advice therefor.
The Administering Company shall settle any and all claims within fifteen (15) days after submission of all required claim documents.
VII
Effectivity
This Department Order takes effect on 1 December 1991.
This Department Order supersedes all earlier issuances on this subject matter which are inconsistent herewith.
For strict compliance.
Adopted: 13 Nov. 1991
Repatriation Bond Coverage
All departing Filipino overseas contract workers shall post a Repatriation Bond drawn and issued locally under the following terms:
1. All overseas contract workers whose employment contract has a term of six months or longer, shall be required or post this Bond.
2. The Bond shall guarantee the reimbursement of the actual costs of repatriation including air fare from the job site and other reasonable expenses connected therewith in the event that such repatriation is necessitated by any contract violation by the overseas contract worker.
3. The Bond coverage shall in no case exceed P20,000.00. However for specific countries like Japan, Hongkong, Singapore, Malaysia, Brunei, Thailand, India and the Trust Territories and other similar areas where return air fair does not exceed P10,000.00, the coverage shall be at least P10,000.00.
The effectivity of the Bond and/or Certificate of Surety undertaking shall commence upon the departure date of the contract worker and shall be extended worldwide for the duration of the worker's employment contract.
Other terms and conditions not specifically stated in the guidelines shall be in accordance with the Repatriation Bond Policy as approved by the Insurance Commission.
Premium Rate and Payment
The premium shall be a maximum of P350.00 per year as established by the Insurance Commission.
The overseas contract worker may file his application for bond and pay for it at a designated center established by POEA and the Surety Companies for this purpose. Otherwise, the licensed agencies may accept their application and premium payments for transmittal to the above designated center for acknowledgment and processing by the Surety Companies.
Eligible Surety Companies
All Surety Companies with current year Certificates of Authority and valid Administrative Order to conduct surety business are eligible to participate provided that they constitute themselves into a reinsurance panel which shall designate an Administering Company from among themselves to administer and manage the daily operations.
The participating companies shall be jointly and solidarily liable for any claim under a bond issued by the Administering Company.
Documentation Requirements
The proof of premium payment should be secured and presented to the POEA prior to the processing of the workers' overseas employment contract.
The POEA shall supervise the proper implementation of the Repatriation Bond requirements as mandated. A monthly summary report shall be provided by the Administering Company to the POEA and the Overseas Workers' Welfare Administration (OWWA).
Cash Deposits
In no case shall any licensed agency require cash deposits from the worker for the purpose of guaranteeing contract performance.
Action on Claims
In the event that a need for repatriation arises, the OWWA shall advance the cost of repatriation upon receipt of advice therefor.
The Administering Company shall settle any and all claims within fifteen (15) days after submission of all required claim documents.
Effectivity
This Department Order takes effect on 1 December 1991.
This Department Order supersedes all earlier issuances on this subject matter which are inconsistent herewith.
For strict compliance.
Adopted: 13 Nov. 1991
(SGD.) RUBEN D. TORRES
Secretary
Secretary