Did you know that the Workmen Injury Compensation Insurance (W.I.C) has been amended and since January 1, 2020, there have been some newly applied changes? What are these changes that have come into effect and how will they impact your employees and impact your business when it is partially enforce this coming September 2020 ?
To prepare you in advance and help you understand the key changes to WICA 2020. We have enclosed an overview insights for your understanding.
WEF 1 SEPTEMBER 2020
WEF 1 JANUARY 2021
WHAT CAN YOU EXPECT FROM THESE CHANGES ?
REPORTING OF WORK-RELATED INCIDENT
Employers are required to report to MOM and their insurers of any work accident resulting in employee’s death, hospitalisation or any instance of medical leave or light duties , within 10 days of the accident. ** irregardless of the number of days of medical certificate issued by the doctors
WHAT WILL HAPPEN TO YOUR POLICY WEF 1ST JAN 2021?
Your policy will be covered under the new compensation limits automatically :
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Policy Renewed Before 1ST JAN 2021: Your policy coverage will only be revised during the next policy renewal (2021).
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Policy Renew On/After 1ST JAN 2021 : Ensure the policy aligned with MOM's compulsory policy requirements assured by designated insurance provider (Especially for Construction related business ).
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Policy should not have any exclusion
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INCREASE IN PREMIUM
With the above enhancements in providing a comprehensive worker's compensation insurance and the accessibility to MOM's shared system with the insurers ( your company's past claim history and total wages paid , number of headcounts etc ) , be prepared for a premium increase for your upcoming renewal.
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Transparent datas shared by all insurer.
As the calculation of premium charged rely on the claim experience of the company and the risk of job scope to be covered . Data transparency allows insurers to access on companies' details instead of relying on client's declarations ( Ex: claim history , total headcount and wages declared for each of their employees to be covered etc ).
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No Exclusion
Higher risk for the insurer to bear which will result in higher premiums imposed for some industry ( ex: construction , renovations , logistics , shipping , offshore etc )
How will your operations be affected ?
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More employees to be covered under employment act. ( Monthly wages $2600 & below )
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Compulsory reporting to MOM / insurer i for any work-related accident (Timeframe: within 10 days).
Examples of work-related accidents
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Fell from the stairs while sending documents to another office.
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Met with an car accident after a business convention , within working hours.
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Met with a robbery and injured overseas during business trip.
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Fought with other party with the objective to protect company's assets / interest .
F0R OFFICES & ADMINSTRATIVE
Non-Labour Intensive Business
Labour Intensive Business
CONSTRUCTION & RENOVATION
INDUSTRY
PROJECT INSURANCE
(Project Contractor All Risk + Workmen Injury Compensation )
Every contractor ( Main-contractor & Sub-contractor ) should rely on their annual WIC insurance to protect their employees during work.
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Project workmen injury compensation (WIC) will be outlawed WEF 1 Sept 2020 and will no longer be recognised by the authorities.
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Third party liability & material damage covered under Project contractor all risk (CAR) remain unchanged.
FOR EXISTING PROJECT INSURANCE
The WIC coverage attached to the project insurance might be terminate and premium refund will be prorated accordingly . However, as every insurer might have different arrangements, please check with your agent directly.
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NOTE
Existing WIC policies attached with project insurance will be allowed 1 year from Sept 2020 to run off and insurers will no longer underwrite project WICA from Sept onwards.
FOR GENERAL CONTRACTOR (Main-Con / Sub-Con )?
Every employer ( Main-contractor & Sub-contractor ) should rely on their annual WIC insurance to protect their employees during work. Being the main contractor of the project , you are still responsible for the safety of the entire team even though affected subcontractor are suppose to claim against their companies' WIC insurance instead of the project WIC insurance.
Following points for your reference:
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Ensure that all subcontractors are covered with a valid insurance issued by MOM's designated insurer before commencement of the project.
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All site-related accidents are reported to relevant authorities and affected employees are compensated .
WITH A COMPREHENSIVE WIC INPLACE , DO WE STILL NEED TO COVER FOR FWMI ? (Foreign Employee Medical Insurance Plan)
Both coverage covers different needs for your employees. As an employer, it is also compulsory to buy and maintain foreign worker medical insurance (FWMI) coverage of at least $15,000/year for each work permit and S-Pass holder.
Foreign Worker Medical Insurance covers inpatient care and day surgery, including hospital bills for conditions that may not be work related. Whereas, Work Injury Compensation Insurance covers accidents arising out of and in the course of employment. Unless there is evidence to prove otherwise, an accident in the course of employment is regarded as arising out of employment.
OUR ADVISORY
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KEY NOTE : Ensure work place safety at all times.
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Work out with your team / supervisors / safety officers and your insurance agent to implement solutions suitable for your business risk.
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Issuance of warning letters to employees who violate safety regulations repeatedly , these will act as a deterrent for any future claims .
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Your insurance agents plays a part to manage every claim properly to prevent high renewal premium loading moving forward.
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Safety officers and supervisors should ensure all workers adhere to the safety guidelines and be more attentive to looking out of the employees during work.
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Look into the insurance details instead of the cheapest premium, ensure that the policy meets your business nature and reduce the risk of any financial loss to the company upon claims.
Summary - ADAPT, PREPARE & MANAGE
While inevitably for some industries ( Construction/ logistics /Marine etc ) will be facing an overall increase in the premium this renewal. Ensuring work safety and working closely with your trusted agent, leveraging on their expertise to manage your account are the key solutions to minimise financial risk in the event of a claim.
We sincerely hope that everyone in your company is still strong and healthy , as we believe that we will conquer this period together. While we may not know when this will end, my team is committed to provide the best possible service experience to you and your company. Be safe and stay healthy.
ADAPT, PREPARE & MANAGE
While inevitably for some industries ( Construction/ logistics /Marine etc ) will be facing an overall increase in the premium this renewal. Ensuring work safety and working closely with your trusted agent, leveraging on their expertise to manage your account are the key solutions to minimise financial risk in the event of a claim.
Lastly , We sincerely hope that everyone in your company is still strong and healthy , as we believe that we will conquer this pandemic convid-19 period together. While we may not know when this will end, my team is committed to provide the best possible service experience to you and your company. Be safe and stay healthy.
