You need to get work injury compensation insurance for all employees doing manual work, as well as all employees earning $2,100 or less a month.
Who needs to be insured
If you are an employer, you are required to buy work injury compensation insurance for:
- All employees doing manual work, regardless of salary level.
- All employees doing non-manual work, earning a salary of $2,100 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance.
You must have 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.
Choosing insurance coverage
When you are buying or reviewing your company’s work injury compensation insurance coverage, do the following:
- Check that you have a insurance policy covering your employees.
- Check which employees are covered.
- Review the occupations and number of employees listed on your policy. Make sure it includes the employees that you are required to cover.
- 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.
- Work-related exclusion clauses are no longer allowed in insurance policies for work injury compensation (except for asbestos-related cases). This means that your insurer is liable to pay for accidents, even if the policy contains the exclusion.
- However, they can still recover the compensation from you if a recovery clause exists. If you have any doubts or questions, check with your insurer.
Update insurance details
If you are applying for or renewing a Work Permit or S Pass, you need to give MOM the following work injury compensation insurance details:
- Name of insurer
- Policy number
- Policy commencement date
- Policy expiry date (include the maintenance period, if there is one)
You will need to provide the information when you get the pass issued in WP Online or EP Online.
Expired policies are not accepted.
Discontinue project WIC insurance
From 1 September 2020, you should not get new project WIC policies.
There are WIC claims that are covered under both project WIC policy and employer’s WIC policy. Such duplicate coverage can lead to delays and disputes over who should compensate the injured employee or to reimburse the employer. Companies can potentially reduce insurance premiums by avoiding duplicate coverage.
What is a project WIC policy
A project WIC policy refers to the portions of project insurance policies that provide coverage for work injury sustained at a project site, or while doing work for a specific project.
You must get WIC insurance for your employees, even if they are covered by project WIC policies.
If your employees are only covered under a project WIC policy, you may be charged for non-insurance. This is because project WIC policies dont cover some instances of work injury, such as injury that occurred in company transport or while working outside the project site.
You can keep your existing project WIC policies. They will be considered double coverage because employers, i.e. sub-contractors, must get their own insurance. If there’s a claim, it will be made against the employer’s policy.
You should not sell new project WIC policies from 1 September 2020. Employers must buy their own WIC insurance policy.
We recommend that you work with developers to terminate the WIC portion of your existing project policies.
For main contractor and developers
You are allowed to keep your existing project WIC policies. They will be considered double coverage as employers, i.e. sub-contractors, must get their own insurance. If there’s a claim, it will be made against the employer’s policy.
You should not renew or buy new WIC policies. Instead, you should ensure that each of your sub-contractors buy insurance to cover their own employees.
You can also buy insurance to cover common law liabilities. Such insurance is not governed under WICA.
We recommend that you work with your insurers to terminate the WIC portion of your project policies.