Employees Injured On The Job? You NEED This Insurance!

Under Singapore’s Work Injury Compensation Act (WICA), employers are legally liable to pay compensation to workers who become hurt or sick while performing activities related to work. For instance, if your worker has a fall during work and fractures their ankle, you must compensate them for their medical expenses, and their salary while they are on medical leave. With regards to the high cost of medical care in Singapore, it is therefore critical to have insurance in place to pay for your workers’ medical bills.

The Work Injury Compensation Insurance (WICA Insurance) reimburses your employees if they suffer injuries, or contract illnesses while working.

WICA coverage is one of the most common types of insurance that SMEs will purchase. It’s usually very affordable, while also providing generous coverage. This insurance type is highly recommended for all employers, since your most valuable assets are often your employees.

This is what's included under WICA Insurance coverage: a. Medical expenses for employee’s work-related injuries/illnesses, including Covid-19 b. Up to 1 year’s lost wages while employee is on MC due to work-related injuries/illnesses c. Up to $289,000 lump sum compensation for temporary or permanent disability of employees, due to work d. Up to $225,000 lump sum compensation for death of employee, due to work Essentially, WICA Insurance covers businesses for all compensation they must legally pay to employees injured while working, as required by MOM regulations.

It is also a legal requirement for employers to compensate their employees if they contract Covid-19 due to work-related causes. This is an especially important point to note for businesses whose employees are more likely to be exposed to Covid-19, such as healthcare firms. For Covid-19 infections arising out of employment, WICA insurance policies may cover the following costs: a. Medical expenses related to the infection, such as hospital treatment b. Lost wages while on medical leave (includes salary, bonus, overtime pay, food and housing allowances, but excludes CPF payment) c. Lump sum compensation for death, or temporary/permanent disability

In Singapore, it is a legal requirement to provide Work Injury Compensation insurance for: a. All workers who perform manual labour, regardless of salary level b. All workers who earn $2,600/month or less, regardless of job scope However, this doesn't mean that you should stop at purchasing WICA Insurance only for the workers that you are legally required to insure. It’s a much better idea to insure ALL of your workforce, as businesses are liable to compensate all employees for any work-related injuries and sickness. Otherwise, you could be staring at a large medical bill from your sick/injured uninsured workers.

If your business or your employees are involved in the following, then this type of insurance is particularly important for you:

• Labour-intensive industries: construction firms, renovation & interior designers, manufacturing firms, warehouse/storage firms, food & beverage establishments, retail stores, etc.

• Frequent exposure to outdoor environments: on-site engineers, technicians, goods delivery, road works, building painters, vehicle towing, car-washing, etc.

• High-hazard industries: scaffolding work, working at shipyards, working with aeroplanes, working at Oil & Gas or Petrochemical sites, working underground in tunnels, etc.

• Offshore work: Fishing, work done on offshore rigs, any kind of work done onboard ships

Most WICA insurance policies come with a standard amount of coverage: a. $10 million annual common law limit b. $45,000 sub-limit for medical expenses c. $289,000 lump sum compensation for death, or temporary/permanent disability d. Coverage for 30 days of lost wages while on MC due to work-related injury/sickness

These requirements are the legal minimums that employers must provide their employees. They are not legally obligated to provide higher coverage. However, some WICA Insurance policies will provide higher coverage – for a higher premium, of course.

It’s highly advisable for employers to insure all their workers with WICA insurance. Even a single WICA claim can put an employer out of pocket for thousands of dollars.