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Work Injury Compensation

WICA Act 2019 Update: Key Changes, and How it Affects You

In Singapore, the Work Injury Compensation Act (WICA) is a statute that allows employees to make claims for work-related injuries or diseases, without having to file a civil suit under common law.

It provides a quicker and more affordable alternative to common law for settling compensation claims.

Who Is Covered?

With some exceptions, all employees of an organisation are covered by WICA, in which an employer is liable for the compensation of their employees, regardless of fault.

This Act is particularly important to the Construction industry, where both manual and non-manual employees are in a higher-risk environment than most.

Work Injury Compensation(WIC) Insurance

Prior to the WICA updates, it was and still is mandatory by law for all employees to purchase Work Injury Compensation (WIC) Insurance for their manual workers regardless of their salary level, and non-manual workers earning less than SGD $1,600 or less a month.

WIC Insurance was optional for non-manual workers earning more than S$1,600 per month.

Key Changes to WICA Act 2019

The 4 key changes to the WICA Act are:
  1. Changes in compensation and medical expenses limits
  2. Expansion of mandatory insurance coverage of non-manual employees
  3. Compensation to include light duties
  4. Compulsory reporting for all (work-related) medical leaves or light duties

In particular, with effect from 01 January 2020(for injuries and diseases occurring on or after this date), the compensation limits have been increased:

Benefits Previous Limits New Limits
Death S$69,000 to S$204,000 S$76,000 to S$225,000
Total Permanent Incapacity S$88,000 to S$262,000 S$97,000 to S$289,000
Medical Expenses Up to S$36,000 or 1 year from date of accident, whichever is reached first Up to S$45,000 or 1 year from date of accident, whichever is reached first

Note: Employers must purchase insurance for all manual employees, regardless of salary.  

From 01 April 2020, the salary threshold for non-manual employees requiring work injury compensation insurance will be increased. The increase will be done in 2 phases:

  Before 01 Apr 2020 From 01 Apr 2020 From 01 Apr 2021
Salary threshold for non-manual employees $1,600 $2,100 $2,600

 

Why is WIC Insurance Important

Even though there are usually multiple contractors with separate insurances to cover an injured employee, it is the direct Employer’s insurer who is required to first respond in a claim, to minimise delays in receiving compensation.

The WIC Insurance coverage is not only mandatory, but it will take care of all benefits required under WICA, which includes medical expenses, medical leave wages, and lump-sum payments in the event of permanent disability or death.

Hence, for your peace of mind, you should always ensure the insurance policies for all your employees accurately reflect their current occupations and salaries.

It is important to note that you must have insurance for both local and foreign employees. Failure to provide adequate insurance is an offense carrying a fine of up to $10,000 or jail of up to 12 months, or bothFor more details on the changes, eligibility, types of compensation and claims procedure, please refer to the Ministry of Manpower website here.

At AWG Insurance, we will be delighted to assist in your enquiries about the changes in premiums and coverage. Do call us at AWG (6294 6688) for advice and assistance.

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    AWG: Covid19 Announcement

    Dear Valuable Clients and Partners, 

    Following the suspension of activities at workplace premises under the elevated safe distancing measures announced by the Ministry of Health (MOH) on 3rd April 2020, we would like to announce the following changes to our work so as to continue our service to our customers. 

    AWG Insurance Brokers is a key member of the financial service industry and we are exempted from the suspension. We will continue to provide services to our customers, but with the following measures and changes. 

    Closure of Office to walk-in Customers. 
    We will no longer allow walk-in submission of documents. The office will not be opened to the public and you will need to submit any Original Documents to our Letter Box placed at our office. If Original is not required, we will encourage sending via email. This is to reduce human contacts and reducing the risk of infection. 

    Working from home
    Our staff and management will be taking turns to work at home. We will have a reduced workforce during this period. Many insurance companies also have their staff working from home. You may still contact your servicer at the DID in their email. 

    Premium Payment

    We will not be able to receive cash payment from customer and all payment is to be made via Paynow with UEN No : 199002234G, QR Code (reflected on our debit note) and Cheques. Please indicate the policy/policies number that you pay and email to dorcaschoy@awginsurance.com for any funds transfer 

    MAS has also announced recently on the availability of premium installment. We have not gotten any update from insurers as of today and will update you soonest once we have any information.  

    Claims 
    Claim function is probably the most important part of our existence. We continue to assist and advise you on any claims matter. For claims payment, we would advise that you opt for direct fund transfer to your designated account number if the option is available. 

    We apologize if there is any inconvenience caused and wish you good health amidst this difficult time. 

    Regards