An Employer's Guide: WIC Insurance and FWMI

In Singapore, A safe and healthy workplace is highly promoted because of the Workplace Safety and Health Act (WSH). It protects the well-being of individuals at work in a given workplace. It also mandates stakeholders to reasonably and practically ensure the safety and health of workers and those impacted by work-related activities. 

With a heightened emphasis on employees' well-being, both in and out of the workplace, insurance becomes essential to protect their employees' interest, particularly in the event of unforeseen accidents or illnesses that could result in financial losses. 

In this guide, we will delve into two essential mandatory insurance for employers: Foreign Worker Medical Insurance and Worker Injury Compensation Insurance. These insurance policies are particularly important when managing specific employee segments in Singapore. 

Worker Injury Compensation Insurance¹

What is Worker Injury Compensation Act (WICA)?

Worker Injury Compensation Act, also known as WICA, lets employees make claims for work-related injuries or diseases without having to file a civil suit under common law. It is a low-cost and quicker alternative to common law for settling compensation. 

Under WICA, employers are required to procure and maintain Worker Injury Compensation Insurance (WIC Insurance) for all employees doing manual work and employees earning less than S$2,600 a month. 

What can your employee claim under WICA?

Under WICA, your employees are eligible to claim for three types of compensation benefits: 

1. Medical Expenses: Covers your employees' hospital bills, medication and other charges associated with the work-related injury 
2. Medical Leave Wages: Covers for the days when your employees were issued with medical leave or light duty due to work injury or disease. 
3. Lump Sum Compensation: 
   • Permanent and current incapacity: Covers your employees who have suffered injuries and illnesses that have permanent or current incapacity, affecting their ability to work.
   • Death: Offers compensation to the family or dependents of your employees in the case of an injury resulting in death. 

What is the compensation limit under WICA?

The compensation limit for WIC Insurance under WICA establishes the annual limits for each work-related injury, illness, permanent disability, or death. These limits range from S$45,000 up to S$225,000 within one year from the date of accident, whichever is reached first. 

 

 

This compensation limit sets out the maximum amount that can be claimed per employee, enabling employers to manage potential financial liabilities while providing adequate protection and peace of mind for their workforce. 

Workplace Injury leading to a claim: Key Consideration

Reporting protocol: Fatal and non-fatal accident 

If a work-related injury arises, the insurers designated by Ministry of Manpower (MOM) are mandated to manage all work injury claims under "WICA 2019" insurance policies, following MOM's prescribes guidelines and requirements. As an employer, it is your responsibility to offer all reasonable assistance to facilitate the insurers in carrying out such proceedings. 

In the case of a work accident, there are two types, and each one has a reporting protocol to adhere to:

1. Fatal accident: Employers are responsible for notifying MOM and their insurers as soon as possible on the fatal accident and submit an accident report within 10 days of accident. 
2. Non-fatal accident: Employers must submit an incident report to MOM and inform their insurers within 10 days from the date they were first notified of the accident. It is important to note that for an accident to be considered non-fatal, the employees must either be hospitalized or given any instance of medical leave or light duty. 

Essential steps to take note: As an employer

There are three key steps to take relating to a work accident:

1. Report accident or notify MOM: Employers must adhere to the reporting protocol outlined above, notifying MOM and insurers about the accident. If the employees are on medical leave, it's mandatory for employers to reimburse their medical leave wages on the next payday upon receiving the original MCs. If the employees have paid their medical bills, the employers must reimburse them within 14 days of receiving the original medical bill.
2. Send and pay for the medical report form to the hospital and clinic: On reporting an accident, the insurer or MOM will send you a medical report form, where applicable. Employers must verify that the hospital or clinic on the medical report a treated aligns with the facility where the employees received the treatment. Following which, employers are required to send and pay for the medical report form to the hospital or clinic, in addition to furnishing a copy of the medical report fee to the insurer or MOM. Employers must also pay for the employees’ medical treatment or provide a letter of guarantee to the hospital or clinic. Most importantly, they should monitor and ensure the employees attend all medical appointments to ensure stabilization of their employees’ conditions.
3. Receive or look out for notice of assessment (NOA) or notice of computation (NOC): Upon receipt of the hospital medical report by MOM, an NOA of the compensation amount will be conducted. The NOA will be issued to inform the employers, the insurers and the employees of the compensation payable. If there are no objections, employers or insurers must make payment within 21 days from the date of service on NOA.

Learn more about what to do during a work injury claim, visit For employers: what to do during a work injury claim (mom.gov.sg) for more information.

Alert! It’s important to note that employers must report any work-related incidents, even if the ten-day reporting deadline has passed. You are required to provide reasons for late reporting in your incident report. Failure to report is considered an offence!

What should you look out for as an Employer?

Worker Injury Compensation Insurance in Singapore serves as a vital safety measure for employees, offering financial security against the risks associated with work-related injuries. When selecting a WICI policy, it's essential to ensure that it meets the needs of both employers and employees.

To that end, consider the following when purchasing WIC Insurance for your employees:

1. Ensure sufficient coverage for your employees: It's crucial to provide the accurate number of employees and their job occupations to the insurers. Under-declaring on wages and non-disclosure of material facts can lead to employees being uninsured, putting your claims at risks and/or violating WICA regulation.
2. Buy it from designated insurers: MOM provides a list of approved insurers for WICA 2019 insurance policies. It's essential to purchase or renew your policies from these authorized insurers since they are required to comply with MOM's mandatory terms.
3. Ensure accurate representation and disclose all material information concerning employees: Recovery clauses are commonly included in WIC insurance policies. Therefore, it's crucial to fully disclose all material information to the insurers to avoid any claim-related issues. This may encompass details such as job category, employee nature, number of employees, and their estimated annual earnings, among other necessary information that insurers need prior to policy issuance.

Foreign Worker Medical Insurance (FWMI)²

What is FWMI?

Under the Employment of Foreign Manpower Act, employers must take responsibility for and cover the expenses associated with the maintenance and upkeep of their work permit and S pass holders.

Since 1 January 2008, MOM has required all employers to obtain and maintain medical insurance (MI) with a minimum coverage of S$5,000 for work permit and S pass holders, including Foreign Domestic Workers. This requirement was implemented alongside the Ministry of Health’s decision to withdraw healthcare subsidies for foreigners. To that end, MI helps employers better manage the medical costs of their foreign workers through risk-pooling.

The minimum insurance coverage increased from S$5,000 to S$15,00 annually starting on 1 Jan 2010. Subsequently, additional enhancements to MI were introduced on 1 July 2023, raising the annual minimum coverage from S$15,000 to $60,000. With the additional enhancements, employers are now better protected from large medical expenses and bills incurred by their foreign employees. These enhancements have been and will be implemented gradually in stages on 1 July 2023 and 1 July 2024 for insurance policies, renewal or extensions starting on or after these dates.

Furthermore, employers can have a co-pay arrangement with the work permit holders (excluding migrant domestic workers) for their medical bills, only if the following conditions are met:

• The co-pay amount is reasonable and does not exceed 10% of the worker’s fixed monthly salary.
• The duration of co-payment does not exceed 6 months (for every 2 years of employment).
• The co-payment option is explicitly in the employment contract or collective agreement and has the worker’s full consent.

Coverage for Foreign Workers Medical Insurance (FWMI)

For employers hiring work permit and/ or S-pass holders, it is mandatory to purchase and maintain medical insurance with a minimum coverage of $60,000 per year for in-patient care, day, surgery, and hospital bills, even for non-work-related conditions.

Key coverage features commonly found in most insurers’ FWMI plans are:

• 24 hours coverage within Singapore only
• Covers only work permit and S Pass holders.
• Covers in-patient hospital or day surgery expenses due to illness or injuries that are unrelated to work.

In-patient hospitalisation and/or day surgery expenses covered by FWMI typically include:

• Hospital room and board (warded in Government Restructured hospitals)
• Intensive Care Unit (ICU)
• Hospital Miscellaneous Services
• In-hospital Physician’s visits
• Surgical Fee
• Pre-hospitalisation Diagnostic X-ray, Lab Test and Specialist Consultation Fees
• Post-Hospitalisation Treatment

There can be other additional benefits extended under the FWMI plans, offered by insurers:

• Special Grant (Compensation payable in the event of death occurring during or after treatment in hospital).
• Repatriation of Mortal Remains (due to illness or injury)
• Personal Accident (arising from non-work related)

Legal Compliance 

Employers who fail to purchase medical insurance are in contravention of the Conditions of Work Permits/S Pass. They shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding six months, or both.

Conclusion

Worker Injury Compensation Insurance and Foreign Worker Medical Insurance are important for Singapore's mandatory insurance requirements and employee’s well-being. WIC Insurance safeguards against work-related injuries, while FWMI provides vital healthcare coverage for foreign workers. 

Information is accurate as of the date of publication on 15 May 2024. 

 Learn more about Worker Injury Compensation Injury Insurance here   Learn more about Foreign Worker Medical Insurance here 

 

Disclaimer: The information provided in this article is for general information only and is not intended to provide a complete descriptions of all terms, exclusions, and conditions applicable to every insurance product or service offered by Liberty Insurance. Liberty Insurance makes no representations or warranties of any kind whatsoever that the information and materials contained on our website are suitable for your needs, are complete, timely, reliable, or are free from errors, inaccuracies or typographical mistakes. Please refer to our website terms and conditions (Terms and Conditions | Liberty Insurance Singapore) for the terms of use and refer to the policy wordings of the products for more details on the relevant terms and conditions

Source 

¹ Work injury compensation (mom.gov.sg) 

² Medical insurance requirements for migrant workers (mom.gov.sg)