Foreigners' Insurance Rights Underused

The government appears to be behind in helping foreign workers better understand their rights regarding insurance policies they are required to subscribe to.

"Foreign workers here do not know about insurance benefits such as unemployment compensation," said Lee Hoon-chang of the Seoul Migrant Worker Center, an activist group for the rights of foreign migrant workers.

Foreign workers here with employment permits and E-9 visas have to subscribe to insurance, including return cost insurance and accident insurance. The employer pays for departure guarantee insurance.

The Human Resources Development Service of Korea (HRDKorea), a government agency, handles issues related to foreign workers' insurance. Samsung Fire and Marine Insurance provides the policies.

The return cost insurance covers a trip back home in case the holder is unable to stay in Korea. It requires a lump sum deposit of 400,000 to 600,000 won that must be made within 80 days after the contract takes effect.

"The amounts they pay for accident insurance varies according to their age and medical history, but they pay 20,000 to 30,000 won on average," said an HRDKorea official.

The government agency says it is doing its best to better publicize related regulations because, among other reasons, many foreign workers go home without reclaiming the deposit, which can only be claimed for two years after the policy expires.

"We promote the insurance program through workers' communities and offer brochures in 14 languages," the official said.

However, 202 policies worth 86.5 million won expired without being claimed last month alone. "We still have the money and try to give it back to the recipients through our staff residing in some 10 countries," said Lee Won-woo of HRDKorea. "We do promotions to receive the insurance money and our overseas staff also looks for those who did not get their insurance money back."

The agency is also considering opening a public welfare service for immigrant workers. "The fund is made up of money migrant workers have paid and it should be used for them if the rightful recipients don't claim their deposits despite our efforts," Lee said.

"Foreign workers do not know about the insurance they subscribe to and they don't have enough information about them. An ethnic Korean I know has lived in Korea for five years but has never seen the brochures explaining about the insurance," Park Eun-ji, a researcher of the Silk Road Foundation, an organization that assists foreigners, said.

Park suggested the agency should distribute pamphlets in communities where large concentrations of the workers live, such as Ansan and Gimpo. It should also explain the insurance plans during the training sessions at HRDKorea. "Many migrant workers want to subscribe for medical insurance, but they don't know how to join it," she said.

She also pointed out a problem in the lump-sum payment method for the departure guarantee insurance. "It is not easy for them to pay 600,000 won at once," Park said.

The insurance becomes invalid if the payment is not made on time.

Also, if the worker changes workplaces or the employer fails to put money in the designated bank account, their insurance is canceled.

The agency knows that, though immigrant workers and their employers are obliged to pay for the premiums, sometimes employers are reluctant to pay their share.

"We are looking for the best way to reduce the number of immigrant workers who do not receive their deposits back. For example, we will change the system so migrant workers can register bank accounts from their home country, so they can receive the money back home as well," the official said.