Why is work injury compensation insurance necessary in Singapore?

There are a few reasons why you would need to take up a work injury compensation insurance plan here in Singapore. Under the Workers Injury Compensation Act, if you are an employer, you are required to provide protection if you qualify the following factors:

  • You are starting a business that requires your employees to do manual work
  • If you have any employees that are doing non-manual work earning less than that of SGD 1600 a month
  • The Work Injury Compensation Act (WICA) lets employees make insurance claims for work-related injuries or diseases without having to file a civil suit under common law. It is a low-cost and quicker alternative to common law for settling compensation claims.
  • An eligible employee has suffered a work-related injury or illness, they can seek compensation through either the Work Injury Compensation Act (WICA) or common law, but not both.

You must have work injury compensation 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. For clarification, send us your details through our online form. Our team will be happy to walk you through the process.

Worker’s compensation insurance covers accidents arising out of and in the course of employment.

Unless there is evidence to prove otherwise, an accident in the course of employment is regarded as arising out of employment.

Even if your teams do not fall into either one of these categories, as an employer, you are still responsible for any legal claims that are made due to an injury or illness that is sustained by any of your employees while at work. To ensure that your business and your employees are protected in Singapore, work injury compensation insurance plans are one of the necessary policies to have.

WHAT CAN EMPLOYEES CLAIM FOR UNDER THE WORK INJURY COMPENSATION INSURANCE?

If employees are covered by the Work Injury Compensation Act (WICA), they can claim for the following types of insurance benefits:

  • Medical leave wages for days you were issued with medical leave due to the work injury or disease.
  • Medical expenses, including your hospital bills, medication and other charges, due to the work injury.
  • Lump sum compensation for permanent incapacity or death.

CHOOSING WORKER'S COMPENSATION INSURANCE COVERAGE 

When you are buying or reviewing your company’s work injury compensation insurance coverage, it is crucial that you do the following:

  • Check that you have an insurance policy covering your employees.
  • Check which employees are covered;
  • Do not under-declare the number of employees to your insurer. This will cause some of your employees to be uninsured.
  • Check for exclusion clauses and recovery clauses.

WHAT SORT OF COVERAGE COMES WITH WORK INJURY COMPENSATION INSURANCE? 

By taking out Work Injury Compensation Insurance cover, you are ensuring protection for your employees in the event of:
    • Any medical expenses incurred as a result of a workplace injury or illness.
    • Outpatient leave up to a certain limit.
    • Hospitalization leave.
    • Accidental death or permanent disablement that is not related to work.
If you would like to discuss this further, reach out to our Business Insurance team today.

HOW CAN I GET THE WORKER'S COMPENSATION INSURANCE FOR MY EMPLOYEES IN SINGAPORE?

Insuring your employees is easy with our top-notch brokerage services and extensive network of insurers. Contact our specialist team to secure a consultation slot today. Working with our team ensures only the best you can get in work injury compensation insurance plans. You can focus on the business knowing that our team is ready to service your needs at any point in time. You may also tap on our expertise in other areas, including personal general liability insurance, outpatient insurance plans and hospitalisation insurance for foreigners.