Important changes to Work Injury Compensation Act in Singapore (WICA) and how it will impact your business.
Parliament has passed the amendments to the Work Injury Compensation Act (WICA) and below are the summary of the changes and their implications to your business.
01 Revised Compensation Limits - Effective 1st January 2020
Impact on your business:
You can expect a 10% to 15% increase in premiums for both project and annual WIC policies due to the increase in the limits of coverage.
Insurance companies have already increased their premiums as of now.
You have to ensure that your projects WIC policies with cover start date before 1st January 2020 will cater to the new changes in the compensation limits. Please check with your policies respective insurance companies.
Some insurance companies will impose an increase in premium on your existing WIC policies (both projects and annual policies) on 1st January 2020 while some insurance companies will only increase the premium upon renewal or extension. Please check with your policies respective insurance companies.
02 Expanding Mandatory Insurance Coverage - Effective 1st April 2020
Impact on your business:
You have to review the salary of your non-manual employees and insured them under a WIC policy if they are earning S$2,100 or less.
Your company will be paying more premium because more of your employees will have to be covered under the WIC policy.
03 Compensation To Include Light Duties - Effective 1st September 2020
Impact on your business:
· Increase in WIC policy premiums due to increase in coverage
04 Changes To Projects WIC & Annual WIC Policy - *Updated
There is no more projects WIC policy starting 1st September 2020. Companies will have to insure their workers and employees under an annual blanket WIC policy which will cover both day to day operations and projects.
Impact on your business:
You have to ensure that Project WIC policies with cover start date before 1st September 2020 will continue their coverage until the cover expiry date.
You can expect an increase in premium on your Annual WIC Policy because of a wider coverage scope to cover both projects and operations. The increment amount has not been finalized yet by the insurance companies but we are expecting a 25% to 50% increase depending on the nature of your business. Companies dealing mainly with project works can expect the highest increase.
You can expect higher premium on annual policy because more workers will have to be covered under Annual WIC policy instead of covering under Project WIC policy. WIC claims under a Project WIC policy is a one-off claim on a non-renewable policy while any claims on your Annual WIC policy will cause an increase in the renewal premium. Since there will no longer be Project WIC policy, WIC claims can only be administered under an Annual WIC policy which will in turn cause an increase in the next renewal premium.
For more information please go to Changes to Work Injury Compensation Act in 2020 website here.
Alternatively, contact us. We are here to assist you.
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