What is work injury compensation insurance?
No matter how robust a company’s safety best practices, workplace accidents happen. Whether it is bodily harm from a fall or an illness due to a toxic chemical leakage, employee on-the-job injuries are costly to all involved. Work injury compensation insurance protects both employees and employers in these situations. Here’s what you need to know about this critical insurance.
The Work Injury Compensation Act (WICA) allows employees make claims for work-related injuries or diseases without having to file a civil suit under common law. However, employers remain liable for claims under both WICA and common law from all employees.
Under the WICA 2019, it is mandatory for employers to maintain work injury compensation insurance for:
- all employees involved in manual work; and
- all other non-manual workers earning S$2,600 or less a month.
What are Work Injury Compensation insurance benefits?
Work injury compensation insurance benefits includes:
- Medical leave - wages for days you were issued with medical leave or light duty, 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, current incapacity or death.
How does Work Injury Compensation insurance work for employers?
Employers obtain work injury compensation insurance policies from insurers, who can help to minimise exposure and optimise premium expenditures. Premium costs can vary widely based on a number of factors:
- Employee risk level
Inherent dangers differ from job to job, which is reflected in the cost of insurance. For example, a 100-person steel-cutting plant would likely pay higher premiums than a 100-person accounting office. - Salaries
Because of the cost to compensate for lost wages, employee salary levels are factored into the premiums. - Employer risk rating
Good or bad, the company history of work injury compensation claims will affect the price of insurance.
How does Work Injury Compensation insurance work for employees?
The Work Injury Compensation Act (WICA) covers any local or foreign employee who is under a contract of service or contract of apprenticeship, regardless of salary, age or nationality. It doesn’t cover:
- Independent contractors and the self-employed
- Domestic workers
- Uniformed personnel – members of the Singapore Armed Forces, Singapore Police Force, Singapore Civil Defence Force, Central Narcotics Bureau and Singapore Prison Service
You can claim for compensation if you have been injured or contracted a disease as a result of work. You remain eligible to claim for compensation even if:
- You no longer work for the employer or your work pass is cancelled
- The accident happened while you were on an overseas assignment
- The accident happened while on a flexi-work arrangement that you agreed with your employer. Dependents of an employee who died because of a workplace accident can also make a claim on behalf of the employee
If your employer has Work Injury Compensation insurance in place, the insurer will pay on behalf of your employer in the event that you are injured or fall sick on the job.
Visit the Ministry of Manpower's website for more information.
No part of this article may be reproduced in any written, electronic, recording, or printed form without written permission of Chubb.
Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Singapore Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.
Have a question or need a quote?
Contact us to find out how we can help you get covered against potential risks