Benefits Of WICA Insurance

WICA insurance is compulsory for manual and non-manual workers whose monthly pay is $2,600 or below. However, because employers may still be obligated to compensate workers who do not fall under this category, some have opted to take WICA insurance for all their employees.

 

WICA insurance has several benefits, including enabling workers to seek compensation for work-related injuries and illnesses without going to court. The compensation process is fast, predictable, and transparent. Besides protecting workers, employers are also protected from costly compensations.

 

Since work injuries are unpredictable, employers protect themselves and their businesses from costly court processes that have predictable outcomes. Under WICA insurance, workers get compensation, and the employer does not worry about bankruptcy overcompensation claims.

 

Encourages Employers to Set Up Safety Nets

 

Work injuries are sometimes unavoidable, but employers can reduce the frequency or severity by making the workplace safe for all workers. WICA insurance is costly over time. This motivates employers to find loopholes within the system that may cause injuries as workers go about their duties.

 

The Claims Process Is Simple

 

Having insurance is one thing. Getting compensated is usually another. For most people, the process is too long and tedious, with some giving up because it is also costly. Fortunately, WICA Singapore has been simplified to ensure workers get compensated within the shortest time possible.

 

Employers must inform the Ministry of Manpower (MOM) within ten days of a work-related accident.

 

Failure To Report an Accident Attracts Fines

 

Workers are protected from rogue employers who choose not to report injuries or accidents at their premises. A first-time offender is fined $200, but this fine can go up to $2,500 for repeat offences.

 

Employers who fail to follow through with the WICA insurance reporting and compensation process, including payment of fines, are liable to a $10,000 fine or a jail term of 6 months.

 

Anyone Delaying the Claims Process Is Punished.

 

MOM is also aware that sometimes their staff do not follow through with claims, even when the employer initiates the process on time. Fortunately, WICA has provided for this eventuality with a fine of up to $5,000 or 6-months imprisonment.

 

Protects Businesses from Financial Loss

 

Compensation claims are costly, and since businesses cannot plan for them, WICA saves the company from financial shock. Paying these claims out of pocket means the business will use the money for its operations, which may ground the company.

 

Saves Workers from Going to Court

 

Without WICA, workers who suffer work-related injuries would be forced to file a civil suit under common law to get compensation. The process can be long and expensive. Sometimes, the worker may be unable to follow the process immediately after an accident, so they must pay out of pocket until they get better.

 

Under WICA, the employer is obligated to initiate the process, so the injured worker need not worry about hospital bills or making compensation claims. This gives injured workers peace of mind knowing they don’t have to worry about losing their paycheck.

 

These are some of the benefits of WICA insurance. It protects workers, employers, and even businesses in the long term.