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FAQs - Work Injury Compensation Act
What is WICA insurance?
The Work Injury Compensation Act (WICA) helps employees to claim for a work accident or if they have contracted a disease due to work without involving any lawyer to file a WICA claim.
In accordance with WICA, any local or foreign employee under a contract of service irrespective of salary, age or nationality is eligible for work injury compensation.
Below are the three types of compensation benefits covered under WICA :
- Medical leave wages
- Medical expenses and
- Lump-sum payments for permanent disability and/or death.
Who needs WICA insurance?
Any employer employing either local or foreign talents is required by law to purchase a Work Injury Compensation Insurance if their employees belong to one of the following categories:
- Doing manual work, regardless of salary level.
- 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.
- 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.
What does WICA insurance not cover?
Work Injury Compensation Insurance covers employees with injuries or accidents met as part of their work. The insurance doesn't provide coverage under the following conditions:
- Meet with a traffic accident while travelling in your own car, your friend’s car, or public transport between home and workplace.
- Meet with a traffic accident while making a personal detour when travelling during work (e.g. detour for personal errand while travelling from workplace to venue for meeting), regardless of the mode of transport.
- Injure yourself while under the influence of alcohol or a prescription drug which was not prescribed by a doctor.
- Deliberately injure yourself or aggravate an existing injury.
What are MOM WICA changes in 2020?
The key changes to WICA as announced by MoM and in effect from 2020 are:
- With effect from 1st January 2020, compensation for death, total permanent incapacity and maximum limit for medical expenses are raised
- With effect from 1st April 2020, salary threshold for non-manual employees requiring Work Injury Compensation Insurance is increased
- With effect from 1st September 2020, compensation from WICA will include light duties due to work related injuries
With effect from 1st September 2020, all work-related medical leaves and light duties must be reported to MoM by the employer.
How to switch insurance if I'm already covered?
Switching policy provider at the time of renewal, that is when your current insurance is near expiration, is straightforward. However, it's important to maintain the continuity of coverage while switching insurance providers. Our team at BLACAZ is always eager to assist you, so get in touch if you have any concerns.
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