Accidents can happen at any time, leaving individuals incapacitated and unable to work. To provide financial support to employees who suffer work-related injuries or illnesses, the Singaporean government has introduced the Work Injury Compensation Act (WICA) insurance scheme. In this blog post, we will delve into the details of WICA insurance, including its coverage, benefits, and requirements.

What is WICA Insurance?

WICA insurance, also known as Work Injury Compensation insurance, is a statutory insurance scheme in Singapore that provides compensation to employees who sustain injuries, illnesses, or diseases as a result of their work or workplace environment. The insurance covers medical expenses, temporary or permanent disability benefits, and death benefits for the dependents, as specified by the Act.

Coverage and Benefits

a) Medical Expenses: WICA insurance covers medical expenses incurred due to work-related injuries or illnesses, including hospitalization, surgical procedures, medication, rehabilitation, and follow-up treatments.

b) Temporary Disability: If an employee temporarily cannot work due to work-related injuries, they will receive 66.67% of their average monthly earnings as compensation until they recover or reach maximum medical improvement.

c) Permanent Disability: If an injury results in permanent disability, WICA insurance compensates the affected employee according to a schedule of assessed disabilities, which determines the percentage of the average monthly earnings they will receive for a specified period.

d) Death Benefits: In the unfortunate event of an employee's death due to a work-related accident or illness, WICA insurance provides a lump sum payment to their dependents. This amount is calculated based on the employee's average monthly earnings and the number of dependents.

Requirements for Employers

a) Mandatory Coverage: All employers in Singapore are legally obligated to provide WICA insurance coverage for their employees. It is essential for employers to obtain a valid insurance policy and ensure continuous coverage.

b) Insurable Employees: WICA insurance covers all employees, including part-time, temporary, and foreign workers, as long as they work under a contract of service or apprenticeship, regardless of salary level.

c) Report and Claim Filing: It is essential for both the employer and the injured employee to promptly report any work-related accidents to the Ministry of Manpower (MOM). Employers must file a WICA claim within ten days of receiving the employee's medical leave certificate, while employees can file a claim within one year of the accident or three years if it results in death.

Conclusion

WICA insurance plays a crucial role in providing financial support to employees who suffer work-related injuries or illnesses in Singapore. By understanding the coverage, benefits, and requirements of this statutory insurance scheme, both employers and employees can ensure that they are adequately protected in the event of workplace accidents. Compliance with WICA insurance regulations is not only essential for employers but also demonstrates their commitment to the welfare of their workforce.