If you are an employer in Singapore, you probably are aware of MOM compliance and what happens if you don’t fulfill it. Before jumping into the process of buying WICA insurance, let's learn the basics of the Work Injury Compensation Act, its coverage, who needs to have it, and what happens if employers don’t adhere by.
Overview of WICA Insurance in Singapore
Like many countries, Singapore also has employment laws for manual and non-manual workers belonging to certain categories. A violation of any of the terms in an employment act by an employer or employee is considered a breach of contract and the penalty can be pretty strict. Failure to provide adequate insurance is an offense carrying a fine of up to $10,000 or jail of up to 12 months, or both.
Back in 2019, Work Injury Compensation Bill was introduced with the purpose to ensure that employees receive compensation for work injuries in a fair and expeditious manner. The objective was to ensure an efficient work injury compensation process with insurance arrangements done to effectively resolve the disputes concerning such compensation.
Who is compliant to buy WICA Insurance in Singapore?
Over the period of more than 2 years since 2019, WICA has been revised several times in regard to the salary level. With the latest amendments in January 2021, as an employer, you are required to buy work injury compensation insurance if your employees fall under one of the following criteria:
- All employees whether local or foreigner doing non-manual work, earning a salary of $2,600 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment, and any allowance.
- All manual workers local or foreign, regardless of salary level.
For employees not falling in the above category, you have the flexibility to decide whether to buy insurance for them. Nevertheless, it is recommended to get insured since you will have to compensate valid claims made by your employees and if you are not insured the value will come out of your business.
An important reminder for employers who are carrying only project WIC policies is that it has been discontinued since 1 September 2020. Thus, if your employees have coverage only via the project WIC policy you might be charged for non-insurance. This is because project WIC policy provides coverage only if the work injury occurred at a project site, or while working for a specific project. It doesn’t cover some instances of work injury, such as an injury that occurred in company transport or while working outside the project site.
Therefore, you must get annual WICA insurance for your employees to comply with the MOM employment act.
What is covered under WICA Insurance?
The Work Injury Compensation Act covers the claims for injuries and occupational diseases that happen at work or as a result of work. The compensation benefits covered by WICA are categorized into the following three types:
- Wages for medical leaves
- Expenses for medical purposes and
- Lump-sum payments due to permanent disability and/or death.
Buy WICA insurance in minutes starting from 17 SGD per month paid annually
For optimum coverage and compliance, it is important for employers to buy work injury compensation insurance policies from the designated insurer who are compliant with MOM’s compulsory terms.
There are many designated insurers who provide insurance but are tied up with the long waiting period to get back with the customized quote and policy.
BLACAZ. identified this problem and developed an automated platform to eradicate the waiting time and provide employers with an option to buy insurance instantly in a few minutes. Getting insurance from BLACAZ. is as easy as following the below simple steps:
- Select the number of employees you want to insure
- Fill in your basic details and get live insurance quotes
- Customize your cover as per your need
- E-sign the policy online
- Pay and you are covered instantly
The process is very straightforward but in case of any additional request or query, contact our customer care experts and get all the right information. We take pride in our streamlined customer service agents who go the extra mile to take care of our customers.