New mandatory insurance scheme for migrant workers

By Nishel Fernando
In an effort to strengthen the weak social safety network, Labour Minister Nimal Siripala de Silva has announced plans to introduce a new mandatory  insurance scheme for migrant workers, with a maximum converge of US $ 15,000.

“We are going to introduce a mandatory insurance scheme for migrant workers in the event of disease, accident and in the event of loss of employment to pay up to US $ 15,000,” De Silva announced at National Occupational Safety and Health Conference 2021, held in Colombo, yesterday. 

He lamented that foreign employment agencies are squeezing off the funds collected from migrant workers. Currently, the Overseas Workers Welfare Fund (OWWF) offers an insurance scheme for all registered migrant workers as well as their families, who receive insurance in case of death up to about US $ 10,000, disability up to about US $ 5,000 and for healthcare, as well as around US $ 2,500 for travel expenses. In addition, it also covers repatriation expenses. 

The funds for this insurance scheme are collected by the Sri Lanka Bureau of Foreign Employment (SLBFE) as a mandatory registration fee of US $ 25 charged on migrant workers. However, 70 percent of this fee goes to placement agents to offer their services to migrant workers. According to analysts, the scheme has two key drawbacks. Despite its coverage taking into effect immediately upon registration for a period of two years, migrant workers can only enjoy the benefits following their return to Sri Lanka. As many migrant workers exceed the two-year work period abroad by extending their contract abroad without returning to the country, they are not required to pay the registration fees, which consequently leads them to lose coverage. Meanwhile, the minister stressed that creation of social safety nets for working population must be prioritised as a political responsibility with almost non-existent social safety network in the country.

“There’s no social safety net in Sri Lanka. It is my mission to ensure that a social safety network should be created for working class. It’s not only a social responsibility; it’s also a political responsibility. We are working on this,” he said.