WICA insurance, or work injury compensation insurance, is a type of insurance that protects employees against injuries or illnesses contracted during the course of work-related activities. It allows employees to make compensation benefit claims without engaging a lawyer or going through common law.
But is it compulsory to buy WICA insurance for your employees? The answer depends on the type of work they do and their salary level. According to the Ministry of Manpower (MOM), you are required to buy WICA insurance for:
All employees doing manual work, regardless of salary level.
All employees doing non-manual work, earning a salary of $2,600 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance3.
You must have insurance for both local and foreign employees. Failure to provide adequate insurance is an offence carrying a fine of up to $10,000 or jail of up to 12 months, or both.
For other employees, you have the flexibility to decide whether to buy insurance for them. However, if those employees make a valid claim, you will have to compensate them regardless of whether they are insured.
When you are buying or reviewing your company’s WICA insurance coverage, you should do the following:
For insurance policies that started before 1 January 2021, check if they cover eligible claims under the Work Injury Compensation Act (WICA) compensation limits.
For insurance policies that start from 1 January 2021, make sure they are issued by a designated insurer and comply with MOM’s compulsory terms.
Do not under-declare your employees’ salaries or misclassify their work scope as this may affect your claim amount or result in penalties.
Discontinue project WIC policies as they may cause duplicate coverage and delays in compensation.
WICA insurance is a vital policy that employers must have for specific categories of employees in Singapore. It offers essential protection in case of work-related injuries or illnesses.
However, the $45,000 limitation on medical expenses underscores the importance of considering supplementary insurance, like Group Health insurance, to bridge the gap and ensure comprehensive coverage.
I hope this article helps you understand more about WICA insurance. If you have any questions or want someone to review your current policy you can contact me here
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