These companies’ liabilities exceed their assets.
Irene Tantiado, Coalition of United Worker (NMI) president, said the unpaid claims of nonresident workers might be affected by the financial status of these insurance companies which issue labor bonds for guest workers.
Sen. Maria T. Pangelinan, D-Saipan and chairwoman of the Committee on Fiscal Affairs, said the Senate will try to see if it can help secure the claims of the guest workers.
The licensed domestic insurance companies that incurred deficits as of Dec. 31, 2005 wer Equitable Insurance Company, First Pacific Transnational Insurance Company, Oceania Insurance Corporation, Pacific Basin Insurance Company Inc.,Premier Insurance Company, Royal Crown Insurance Company, and Traders Insurance Company.
But Pangelinan said insurance companies with “negative” financial reports are not necessarily insolvent.
“The company may be just operating less than what is really required by law,” she said. “But the government is trying to work out with them so that they can return to the standard level.”
While most of the insurance companies cater to the labor bonds for the non-resident workers they have also remitted the required funds as surety deposit, the senator added.
Pangelinan said 25 percent of the $50 surety bond paid for each guest worker goes to the reserve fund.
The insurance company, she added, will also have to pay $100,000 as security deposit to get a license in the government.
“I sympathize with nonresident workers who really do not have the means or knowledge to follow through with their claims,” Pangelinan said. “It’s frustrating to go through this process.”
Tantiado, for her part, said the Departments of Labor and Commerce should coordinate with each other.
“They should also consider the insured guest workers,” she said.
She said Commerce should inform Labor about insurance companies that are performing badly or are on the verge of bankruptcy.
The government, she added, should not renew the licenses of these insurance companies.
