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Incentives for safer companies, enhanced coverage, and more under new Work Injury Compensation Bill 2019

The Work Injury Compensation (WIC) Bill 2019 was passed in Singapore's Parliament on 3 September 2019, bringing a range of far-reaching implications for employers, employees, and insurance providers.

Among the key changes for employers to note are: more clarity in terms of WIC-compliant insurance policies; enhanced insurance T&C to prevent unfair exclusions; and insurance premiums aligned with companies' safety records (thus companies with good safety records can benefit from lower premiums).

 

(D) More certainty for employers

a) Designated WIC insurers to sell only WICA-compliant policies (i) To safeguard employers, a core set of standard terms for WICA-compliant policies will be prescribed to ensure adequate coverage. Insurers can offer additional coverage but they cannot reduce the benefits under the standard policy. (ii) A maximum fine of S$80,000 will be imposed on any person who offers policies purporting to be WICA-compliant. Such person will have to pay compensation as though the policies offered were WICA-compliant policies. (iii) A maximum fine of S$80,000 will be imposed on any unauthorised person who offers WICA-compliant policies.

b) Recourse for employers (i) The Commissioner can order the claimant to refund the employer (or insurer), if the employer (or insurer) had paid for the medical expenses or PI or death compensation due to error or false or misleading information.

(E) Other amendments

a) Safeguard against fraud or error (i) The current WICA does not allow late objections irrespective of the reasons, if no objection is raised within the given 14-day from the receipt of the notice of assessment. This will be amended to allow for late objections if the late objection is due to error or fraud by another person.

b) Increased and new penalties (i) Any person withholding necessary information or documents for claims processing will be liable for a maximum fine of S$5,000 and/or 6 months’ imprisonment. (ii) Failure to pay deposit compensation ordered will result in a maximum fine of S$15,000 and/or 12 months’ imprisonment. (iii) The maximum fine for non-or-late payment of compensation will be increased S$15,000. (iv) The maximum fine will be doubled for a second or subsequent conviction for WICA offences.


Comments from labour experts on WICA

Minister of State for Manpower, Zaqy Mohamad noted that WICA has been brought about after consulting unions, employers, insurers, NGOs and the general public. He said: "WICA 2019 is important not only because it will provide faster and fairer compensation for work injuries, but because it should result in fewer injuries occurring in the first place."

Melvin Yong, Assistant Secretary-General, National Trades Union Congress, said that amendments will undoubtedly enhance the protection of employees; however this is only the first half of the workplace safety and health (WSH) equation. "WSH needs to be tackled holistically, and the Labour Movement stands ready to partner with companies to promote both workplace safety and health."

Douglas Foo, Vice President, Singapore National Employers Federation, talked about the the updates to WIC-compliant policies. "With a prescribed core set of standard terms for WICA-compliant policies, employers will be assured of complete coverage for their WICA liabilities. This safeguards employers’ interest and we welcome this change."

Commending the amendments to the Bill during the second reading, Patrick Tay, Assistant Secretary-General, NTUC, called out the mandatory requirement to report all instances of MC or light duties due to work injuries, as it ensures less incentive for employers to influence doctors to prescribe fewer days of MC, among the other aspects cited.

He added: "The work injury compensation (WIC) framework is a no-fault system with the aim of providing workers injured in work-related accidents with low-cost and expeditious means to claim WIC. The Bill seeks to improve the framework to better enable the meeting of its objectives."


The three infographics / Minister Zaqy Mohamad Compensation limits table / MOM Lead image / ASG Patrick Tay

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