As an employer, you are required
by law to purchase an approved work injury compensation (WIC) insurance policy
from a designated insurer approved by MOM. Mandatory WIC insurance is applicable
for all manual workers, and non-manual workers earning at or below the
stipulated salary threshold. While you may buy one or a few insurance policies
to cover all your employees, you are advised to insure all employees of
specific job category with only one designated insurer.
You remain liable to compensate
these employees of their work-related injuries. You are also
encouraged to purchase WIC insurance policies for other groups of
employees. You should also ensure adequate WIC insurance to reduce financial
impact from compensation payouts
WHO HAS TO BUY WIC INSURANCE
With effect from 1 April 2020, the salary threshold for non-manual employees requiring Work Injury Compensation (WIC) insurance will be increased in 2 phases.
WHO NEEDS TO GET WIC INSURANCE
An employer is required to maintain adequate WIC insurance for:
For other employees doing non-manual work with monthly earnings above the salary threshold, employers have the flexibility to decide whether to buy insurance for them. In the event of a valid claim, the employer will be required to pay the compensation if he does not have insurance coverage for this group of employees
PROVIDING WIC INSURANCE DETAILS TO DESIGNATED INSURERS
Employers are to provide accurate* information and other supporting documents to the designated insurers during purchase and renewal of WIC insurance policies:
• Annual payroll of their company
• Total workforce size
• Any other information that the
designated insurer requires to
underwrite their police
*Failure to provide accurate information may result in designated insurers seeking compensation from the employers for what they had paid out.
THINGS TO NOTE ABOUT WIC INSURANCE
- Your employees must be covered under an approved WIC insurance policy
- Employers should only purchase approved WIC insurance policies from designated insurers approved by MOM.
- Employers are encouraged to insure all employees of specific job category with only one designated insurer.
- WIC insurance policies should cover all the benefits under WICA 2019.
- Includes medical leave wages (i.e. outpatient, hospitalization and light duty), medical expenses, and lump sum payments for PI and death
Check the coverage of employees and validity of the policy
- Policies should accurately reflect the occupation, salary and the employees who should be covered.
- Policies must be renewed before expiry.
- Employer’s designated insurer is liable to pay when there are multiple insurance policies
- When multiple contractors have separate insurances that cover an injured employee, the employer’s designated insurer will be the first to respond in the event of a valid claim.
