Under the Work Injury Compensation (WIC) Act, employers in Singapore are legally obligated to provide work injury compensation insurance for every worker that earns $1,600 or lower per month. Since this insurance type involves every employer in Singapore, it is important that you read this article and debunk any myths that you may have.
MYTH | FACT |
It is okay if I renew my WIC policy after it expires. | It is compulsory for you to renew your policy before expiry. If an accident occurs during the period when your insurance has expired and not renewed, you will be responsible for compensating your injured workers. Additionally, you may be punished for failing to insure your workers. |
There is no need for work injury compensation insurance because group health and personal accident (PA) insurance will adequately compensate my injured employees. | Work related accidents are not covered under health and PA insurance. |
Since I already have an annual insurance policy, there is no need to buy another project insurance policy. | Your annual insurance policy might exclude works at project sites, and may even have contract limits. |
Although my workers are required to drive regularly, I declared my employees' occupations as general workers. That should be good enough. | Your WIC policy must show ALL the job functions of your employees, not just general work. |
My workers are deployed to work on a project site and there is project work insurance by the main contractor to cover them. | Your annual WIC insurance policy will first be utilized to satisfy a claim unless your project insurer informs MOM they will pay the compensation before the Notice of Assessment is issued. |
Should you have any questions after reading this article, do not hesitate to contact us at https://www.kgaa.com.sg/contact.
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